Business Description
PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The company's Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. It also provides coatings and finishes for the protection of metals and structures, such as metal fabricators, heavy duty maintenance contractors, and manufacturers of ships, bridges, and rail cars; paints, wood stains, adhesives, and purchased sundries for painting and maintenance contractors, and consumers for decoration and maintenance of residential and commercial building structures; and paints, thermoplastics, pavement marking products, and other technologies for pavement marking. The company's Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic tubes, and promotional and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. The company was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.
Business History
Generated: Jun 7, 2026 5:22pmPrice Overview
Last updated: Jun 7, 2026 5:20pm (19d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 6.96
Total Equity: -$3.54B
Shares: 227,100,000
Total Debt: $7.45B
Cash: $2.16B
EBITDA: $2.81B
Total Debt: $7.45B
Cash: $2.16B
Revenue: $15.88B
Revenue: $15.88B
Revenue: $15.88B
Total Equity: -$3.54B
Tax Rate: 22.4%
Equity: -$3.54B
Total Debt: $7.45B
Cash: $2.16B
Current Liabilities: $4.90B
Long-Term Debt: $6.60B
Total Debt: $7.45B
Total Equity: -$3.54B
Shares: 227,100,000
Shares: 227,100,000
CapEx: -$778.00M
Shares: 227,100,000
Stock Price: $113.80
Net Income: $1.58B
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 5:25pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $16.8B | $15.6B | $16.2B | $15.8B | $15.9B |
| Cost of Revenue | $10.3B | $10.0B | $9.7B | $9.3B | $9.8B |
| Gross Profit | $6.5B | $5.6B | $6.6B | $6.6B | $6.0B |
| Operating Expenses | $4.8B | $4.0B | $4.5B | $4.3B | $3.9B |
| Operating Income | $1.7B | $1.7B | $2.0B | $2.3B | $2.2B |
| Net Income | $1.4B | $1.0B | $1.3B | $1.1B | $1.6B |
| EBITDA | $2.5B | $2.0B | $2.5B | $2.6B | $2.8B |
| EPS | $6.06 | $4.35 | $5.38 | $4.77 | $6.96 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 5:20pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.0B | $1.1B | $1.5B | $1.3B | $2.2B |
| Total Current Assets | $6.8B | $7.2B | $7.4B | $6.6B | $8.0B |
| Total Assets | $21.4B | $20.7B | $21.6B | $19.4B | $8.0B |
| Current Liabilities | $4.8B | $4.7B | $5.1B | $5.0B | $4.9B |
| Long-Term Debt | $6.6B | $6.5B | $5.7B | $4.9B | $6.6B |
| Total Liabilities | $14.9B | $14.0B | $13.6B | $12.5B | $11.5B |
| Total Equity | $6.3B | $6.6B | $7.8B | $6.8B | -$3.5B |
| Retained Earnings | $20.4B | $20.8B | $21.5B | $22.0B | $0 |
Cash Flow (Annual)
Last updated: Jun 7, 2026 5:25pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.6B | $963.0M | $2.4B | $1.4B | $1.9B |
| Capital Expenditure | -$371.0M | -$486.0M | -$516.0M | -$721.0M | -$778.0M |
| Free Cash Flow | $1.2B | $477.0M | $1.9B | $699.0M | $1.2B |
| Acquisitions (net) | -$2.1B | $3.0M | -$73.0M | $294.0M | $42.0M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$210.0M | -$190.0M | -$86.0M | -$752.0M | -$790.0M |
| Net Change in Cash | -$821.0M | $94.0M | $394.0M | -$223.0M | $893.0M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 5:20pm (19d ago)| Metric | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| Revenue |
$16.7B $16.2B – $17.1B
|
$17.2B $16.6B – $18.1B
|
$17.7B $17.7B – $17.7B
|
$18.0B $17.3B – $18.6B
|
| EBITDA |
$3.7B $3.6B – $3.8B
|
$3.8B $3.7B – $4.0B
|
$3.9B $3.9B – $3.9B
|
$4.0B $3.8B – $4.1B
|
| Net Income |
$1.8B $1.7B – $1.8B
|
$2.0B $1.9B – $2.0B
|
$2.1B $2.0B – $2.2B
|
$2.4B $2.3B – $2.5B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 5:25pm (19d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | -7.1% | +4.0% | -2.4% | +0.2% |
| Gross Profit Growth | -13.5% | +16.4% | +0.4% | -8.5% |
| Operating Income Growth | -1.2% | +22.1% | +12.4% | -5.2% |
| Net Income Growth | -28.7% | +23.8% | -12.1% | +41.2% |
| EBITDA Growth | -18.9% | +21.1% | +5.5% | +8.9% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 5:24pm (19d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-12 | Hefel Juliane M. | P-Purchase | 8.73 | $114.84 | $1,002 |
| 2026-06-12 | Hefel Juliane M. | P-Purchase | 2.81 | $121.45 | $342 |
| 2026-06-15 | Hefel Juliane M. | A-Award | 1.16 | $0.00 | $0 |
| 2026-06-12 | Hefel Juliane M. | A-Award | 7.23 | $0.00 | $0 |
| 2026-06-15 | Massy Robert L. | A-Award | 0.22 | $0.00 | $0 |
| 2026-06-15 | KNAVISH TIMOTHY M | A-Award | 27.67 | $0.00 | $0 |
| 2026-06-15 | Hagerty Chancey E. | A-Award | 0.09 | $0.00 | $0 |
| 2026-06-15 | Foulkes Anne M. | A-Award | 15.72 | $0.00 | $0 |
| 2026-06-15 | Braun Kevin D. | A-Award | 1.20 | $0.00 | $0 |
| 2026-06-15 | Bellezza Alisha | A-Award | 0.53 | $0.00 | $0 |
| 2026-06-12 | Morales Vincent J | A-Award | 122.14 | $0.00 | $0 |
| 2026-06-12 | Massy Robert L. | A-Award | 0.88 | $0.00 | $0 |
| 2026-06-12 | KNAVISH TIMOTHY M | A-Award | 64.35 | $0.00 | $0 |
| 2026-06-12 | Hagerty Chancey E. | A-Award | 0.98 | $0.00 | $0 |
| 2026-06-12 | Foulkes Anne M. | A-Award | 3.56 | $0.00 | $0 |
| 2026-06-12 | Ericson Amy R. | A-Award | 1.01 | $0.00 | $0 |
| 2026-06-12 | Braun Kevin D. | A-Award | 4.51 | $0.00 | $0 |
| 2026-06-12 | Bellezza Alisha | A-Award | 0.84 | $0.00 | $0 |
| 2026-06-12 | Topalian Leon J | A-Award | 16.08 | $0.00 | $0 |
| 2026-06-12 | Roberts III Chris | A-Award | 28.61 | $0.00 | $0 |
Dividend History (Last 20)
Last updated: Jun 7, 2026 5:20pm (19d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-05-11 | $0.71 | 2026-04-16 | 2026-05-11 | 2026-06-12 |
| 2026-02-20 | $0.71 | 2026-01-15 | 2026-02-20 | 2026-03-12 |
| 2025-11-10 | $0.71 | 2025-10-16 | 2025-11-10 | 2025-12-12 |
| 2025-08-11 | $0.71 | 2025-07-17 | 2025-08-11 | 2025-09-12 |
| 2025-05-12 | $0.68 | 2025-04-17 | 2025-05-12 | 2025-06-12 |
| 2025-02-21 | $0.68 | 2025-01-16 | 2025-02-21 | 2025-03-12 |
| 2024-11-12 | $0.68 | 2024-10-17 | 2024-11-12 | 2024-12-12 |
| 2024-08-12 | $0.68 | 2024-07-18 | 2024-08-12 | 2024-09-12 |
| 2024-05-09 | $0.65 | 2024-04-18 | 2024-05-10 | 2024-06-12 |
| 2024-02-15 | $0.65 | 2024-01-18 | 2024-02-16 | 2024-03-12 |
| 2023-11-09 | $0.65 | 2023-10-19 | 2023-11-10 | 2023-12-12 |
| 2023-08-09 | $0.65 | 2023-07-20 | 2023-08-10 | 2023-09-12 |
| 2023-05-09 | $0.62 | 2023-04-20 | 2023-05-10 | 2023-06-12 |
| 2023-02-16 | $0.62 | 2023-01-19 | 2023-02-17 | 2023-03-10 |
| 2022-11-09 | $0.62 | 2022-10-20 | 2022-11-10 | 2022-12-12 |
| 2022-08-09 | $0.62 | 2022-07-21 | 2022-08-10 | 2022-09-10 |
| 2022-05-09 | $0.59 | 2022-04-21 | 2022-05-10 | 2022-06-10 |
| 2022-02-17 | $0.59 | 2022-01-20 | 2022-02-18 | 2022-03-11 |
| 2021-11-09 | $0.59 | 2021-10-21 | 2021-11-10 | 2021-12-10 |
| 2021-08-09 | $0.59 | 2021-07-15 | 2021-08-10 | 2021-09-10 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Independent read of the tape first: PPG is doing roughly $15.9B at a 38% gross margin and 13.7% operating margin, generating $1.94B in operating cash and $1.16B FCF on a $25.4B market cap. That's a ~4.6% FCF yield with a 2.7% dividend on top — not cheap, not egregious for a mature coatings franchise. But the quarterly trajectory is uglier than the headline metric: Q1'26 revenue $3.93B is flat against Q1'25 $3.68B (+6.8%) but down sharply from Q3'24 $4.58B and Q2'24 $4.24B. The Q4'24 print ($2.17B rev, -$280M NI) is clearly a divestiture/discontinued ops artifact (likely the architectural coatings sale) and should be treated as noise, not a collapse. Stripping that, run-rate revenue is ~$16B and net income is annualizing around $1.6B — flat-to-slightly-up. Earnings CAGR of 11.4% is largely mix/buyback-driven, not organic.
The synthesis verdict of $82.62 fair value (-27% from $113.80) strikes me as too punitive but directionally right. A 4.6% FCF yield on a flat-revenue specialty chemical with cyclical end-market exposure (auto OEM, aerospace, industrial) deserves something like a 5.5-6% FCF yield in a normalized rate environment, which gets you to $90-105, not $82. The DCF is probably anchoring on the -21.7% FCF CAGR, which I'd argue overweights working capital noise and divestiture-related capex — the $778M capex line is elevated and likely normalizes. ROIC of 8.8% against what's probably a ~9-10% WACC is the real problem: this business isn't creating much economic value at the margin, and that, not the multiple, is what should cap the price.
The contrarian case the models underplay: PPG just shed architectural coatings (lower-margin, more cyclical), the remaining mix is aerospace + industrial + auto refinish, and aerospace coatings is a genuinely good business with multi-year backlog visibility. If Q1'26's 9.7% net margin holds and inflects toward 11% (where Q2-Q3'25 ran), you're looking at $1.75-1.8B normalized NI, which puts the forward P/E at ~14x — reasonable for a quality industrial. The narrative layer's "moderate intensity, anchored" framing is fair; this isn't a story stock, it's a show-me-the-margin stock. The negative book value flag (pb -6.54) is a buyback/goodwill artifact, not a solvency issue — ignore it. Insider data is useless (all small awards, no open-market activity to read).
Where I dissent from the synthesis: "extremely fragile, almost no scenarios support the current price" is overstated. A flat-revenue, 14% op-margin, 4.6% FCF-yield specialty chem with a 2.7% dividend doesn't need heroic assumptions to defend $100-110; it needs the margin expansion to hold and aerospace to not roll over. Where I agree: $113.80 is paying for execution that hasn't been demonstrated for four consecutive quarters yet — Q4'25's 7.7% margin is a yellow flag and the -1.1% revenue CAGR is real. Market Forces' "Neutral with caution" is the most honest read in the stack. Fair value range I'd defend: $95-105, call it $100. Current price embeds 10-15% of optimism on margin durability and bolt-on M&A accretion. Not a short, not a buy here — a hold with a clear add level in the low $90s if industrial PMI weakens further and takes the stock down with the sector.
GPT Critique
PPG Industries Inc. shows a consistent yet stagnant revenue trajectory, maintaining a five-year range between $15.6 billion and $16.8 billion. The revenue stagnation contrasts with a fluctuating net income, notably recovering from a significant dip in 2024 with a net income of -$280 million in Q4. The recent periods suggest a stabilization around a $1.58 billion net income for 2025. The quarterly data reveals a slight revenue uptick in Q1 2026 compared to Q1 2025, indicating some resilience amidst broader market challenges. However, the margins exhibit a volatile trend, with the most recent quarter's net margin at 9.7%, a recovery from the previous decline. Notably, the cash flow metrics, particularly the $1.16 billion free cash flow, reflect a robust cash management strategy, albeit with a significant capex burden likely tied to strategic investments.
Opus argues that PPG is "modestly overvalued" with a fair value range of $95 to $105. I concur with their assessment of overvaluation but diverge on the fair value's upper bound. The current market price of $113.80 reflects an optimistic view of PPG's margin expansion potential, which is not yet consistently demonstrated. Opus's critique of the synthesis's $82.62 fair value as too harsh is reasonable; however, I would place fair value slightly lower, around $90-$100, reflecting greater caution about the sustainability of recent earnings improvements and the broader market's cyclical challenges. The synthesis's focus on the FCF CAGR of -21.7% seems overly pessimistic, but it rightly highlights concerns over economic value creation, with the ROIC at 8.8% against a WACC of 9-10%.
I agree with Opus's dismissal of the negative book value as a significant issue, attributing it to buybacks and goodwill rather than solvency concerns. However, I disagree with their assertion that PPG doesn't need "heroic assumptions" to justify the $100-$110 range. Given the cyclicality and the observed market contractions, the current price requires faith in both margin expansion and favorable market conditions, which are not assured in the near term. Additionally, while Opus acknowledges the potential for aerospace coatings as a growth driver, I remain skeptical about its capacity to offset broader cyclical pressures, especially with the noted 1.1% revenue CAGR decline.
A skeptic might argue that both Opus and my analyses underestimate the potential for PPG's strategic shifts post-divestiture to unlock higher margins, particularly if aerospace and industrial segments outperform expectations. They might also point to the robust cash flow and dividend yield as indicators of latent value yet to be recognized fully by the market.