PPG Industries, Inc. (PPG) 10-Year Financial Performance & Capital Metrics

PPG • • Industrial / General

Basic MaterialsSpecialty ChemicalsPerformance Coatings & PaintsArchitectural & Consumer Paints

AboutPPG 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.Show more

Revenue $15.85B -2.4%
EBITDA $2.78B +9.0%
Net Income $1.12B -12.1%
EPS (Diluted) 4.75 -11.2%
Gross Margin 41.61% +3.0%
EBITDA Margin 17.54% +11.8%
Operating Margin 14.43% +15.2%
Net Margin 7.04% -9.9%
ROE 14.89% -13.6%
ROIC 13.6% +17.5%
Debt/Equity 0.92 +11.7%
Interest Coverage 9.49 +15.2%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓14 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 15.9%
✓Healthy dividend yield of 2.5%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y0.69%

5Y0.91%

3Y-1.94%

TTM-19.15%

Profit (Net Income) CAGR

10Y-6.14%

5Y-2.13%

3Y-8.12%

TTM-32.97%

EPS CAGR

10Y-4.49%

5Y-1.87%

3Y-7.54%

TTM-30.11%

ROCE

10Y Avg13.41%

5Y Avg12.18%

3Y Avg12.48%

Latest14.75%

Peer Comparison

Architectural & Consumer Paints

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SHWThe Sherwin-Williams Company	88.65B	357.63	33.90	0.2%	11.05%	58.12%	2.35%	2.94
PPGPPG Industries, Inc.	24.25B	108.05	22.75	-2.44%	7.05%	12.52%	2.88%	0.92
RPMRPM International Inc.	14.28B	111.52	20.84	0.51%	8.79%	21.29%	3.77%	1.03

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	14.24B	14.27B	14.75B	15.37B	15.15B	13.83B	16.8B	15.61B	16.24B	15.85B
Revenue Growth %	-0.04%	0%	0.03%	0.04%	-0.01%	-0.09%	0.21%	-0.07%	0.04%	-0.02%
Cost of Goods Sold+	7.79B	7.67B	8.21B	9B	8.65B	7.78B	10.29B	9.97B	9.68B	9.25B
COGS % of Revenue	0.55%	0.54%	0.56%	0.59%	0.57%	0.56%	0.61%	0.64%	0.6%	0.58%
Gross Profit+	6.46B	6.61B	6.54B	6.37B	6.49B	6.06B	6.52B	5.64B	6.56B	6.59B
Gross Margin %	0.45%	0.46%	0.44%	0.41%	0.43%	0.44%	0.39%	0.36%	0.4%	0.42%
Gross Profit Growth %	0%	0.02%	-0.01%	-0.03%	0.02%	-0.07%	0.08%	-0.13%	0.16%	0%
Operating Expenses+	4.5B	5.42B	4.53B	4.51B	4.55B	4.28B	4.83B	3.97B	4.53B	4.31B
OpEx % of Revenue	0.32%	0.38%	0.31%	0.29%	0.3%	0.31%	0.29%	0.25%	0.28%	0.27%
Selling, General & Admin	3.58B	4.52B	3.61B	3.57B	3.6B	3.39B	3.83B	3.04B	3.59B	3.39B
SG&A % of Revenue	0.25%	0.32%	0.25%	0.23%	0.24%	0.24%	0.23%	0.19%	0.22%	0.21%
Research & Development	466M	453M	451M	441M	432M	379M	439M	434M	424M	423M
R&D % of Revenue	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%
Other Operating Expenses	446M	440M	460M	497M	511M	509M	561M	502M	514M	492M
Operating Income+	1.96B	1.19B	2.01B	1.86B	1.95B	1.78B	1.69B	1.67B	2.04B	2.29B
Operating Margin %	0.14%	0.08%	0.14%	0.12%	0.13%	0.13%	0.1%	0.11%	0.13%	0.14%
Operating Income Growth %	0.08%	-0.39%	0.69%	-0.08%	0.05%	-0.09%	-0.05%	-0.01%	0.22%	0.12%
EBITDA+	2.4B	1.63B	2.47B	2.36B	2.46B	2.29B	2.25B	2.17B	2.55B	2.78B
EBITDA Margin %	0.17%	0.11%	0.17%	0.15%	0.16%	0.17%	0.13%	0.14%	0.16%	0.18%
EBITDA Growth %	0.06%	-0.32%	0.52%	-0.05%	0.04%	-0.07%	-0.02%	-0.04%	0.18%	0.09%
D&A (Non-Cash Add-back)	446M	440M	460M	497M	511M	509M	561M	502M	514M	492M
EBIT	1.87B	904M	2.11B	1.81B	1.79B	1.5B	1.94B	1.52B	1.94B	2.09B
Net Interest Income+	-86M	-99M	-85M	-95M	-100M	-115M	-95M	-113M	-107M	-64M
Interest Income	40M	26M	20M	23M	32M	23M	26M	54M	140M	177M
Interest Expense	126M	125M	105M	118M	132M	138M	121M	167M	247M	241M
Other Income/Expense	-214M	-410M	-9M	-169M	-285M	-418M	129M	-311M	-345M	-435M
Pretax Income+	1.75B	779M	2B	1.69B	1.66B	1.36B	1.81B	1.35B	1.69B	1.85B
Pretax Margin %	0.12%	0.05%	0.14%	0.11%	0.11%	0.1%	0.11%	0.09%	0.1%	0.12%
Income Tax+	413M	214M	615M	353M	392M	291M	374M	320M	428M	475M
Effective Tax Rate %	0.81%	1.12%	0.8%	0.79%	0.75%	0.78%	0.79%	0.76%	0.75%	0.6%
Net Income+	1.41B	873M	1.59B	1.34B	1.24B	1.06B	1.44B	1.03B	1.27B	1.12B
Net Margin %	0.1%	0.06%	0.11%	0.09%	0.08%	0.08%	0.09%	0.07%	0.08%	0.07%
Net Income Growth %	-0.33%	-0.38%	0.83%	-0.16%	-0.07%	-0.15%	0.36%	-0.29%	0.24%	-0.12%
Net Income (Continuing)	1.33B	565M	1.39B	1.34B	1.27B	1.07B	1.44B	1.03B	1.26B	1.38B
Discontinued Operations	95M	330M	225M	18M	0	3M	19M	19M	47M	-228M
Minority Interest	86M	87M	115M	102M	119M	126M	125M	117M	191M	177M
EPS (Diluted)+	5.14	3.28	6.18	5.46	5.22	4.45	6.01	4.32	5.35	4.75
EPS Growth %	-0.32%	-0.36%	0.88%	-0.12%	-0.04%	-0.15%	0.35%	-0.28%	0.24%	-0.11%
EPS (Basic)	5.18	3.30	6.22	5.50	5.25	4.47	6.06	4.35	5.38	4.77
Diluted Shares Outstanding	273.6M	267.4M	257.8M	245.4M	238.2M	237.9M	239.4M	237.3M	237.2M	234.9M
Basic Shares Outstanding	271.4M	265.6M	256.1M	243.9M	236.9M	236.8M	237.6M	236.1M	236M	233.8M
Dividend Payout Ratio	0.27%	0.47%	0.27%	0.34%	0.38%	0.47%	0.37%	0.56%	0.47%	0.56%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	6.71B	6.57B	6.48B	5.96B	6.17B	6.8B	6.77B	7.17B	7.43B	6.56B
Cash & Short-Term Investments	1.46B	1.86B	1.49B	963M	1.27B	1.92B	1.07B	1.15B	1.57B	1.36B
Cash Only	1.31B	1.82B	1.44B	902M	1.22B	1.83B	1B	1.1B	1.49B	1.27B
Short-Term Investments	144M	43M	55M	61M	57M	96M	67M	55M	75M	88M
Accounts Receivable	2.71B	2.65B	2.9B	2.85B	2.76B	2.73B	3.15B	3.3B	3.01B	2.98B
Days Sales Outstanding	69.43	67.88	71.85	67.54	66.42	71.92	68.47	77.21	67.58	68.76
Inventory	1.66B	1.51B	1.73B	1.78B	1.71B	1.74B	2.17B	2.27B	1.93B	1.85B
Days Inventory Outstanding	77.77	72.1	76.92	72.3	72.13	81.43	77.04	83.14	72.94	72.83
Other Current Assets	889M	543M	353M	370M	431M	415M	379M	444M	922M	368M
Total Non-Current Assets+	10.36B	9.2B	10.06B	10.05B	11.54B	12.76B	14.58B	13.57B	14.22B	12.88B
Property, Plant & Equipment	2.82B	2.61B	2.82B	2.81B	3.77B	3.97B	4.33B	4.16B	4.02B	4.06B
Fixed Asset Turnover	5.05x	5.47x	5.22x	5.48x	4.02x	3.48x	3.88x	3.76x	4.04x	3.90x
Goodwill	3.67B	3.57B	3.94B	4.07B	4.47B	5.1B	6.25B	6.08B	6.12B	5.69B
Intangible Assets	2.18B	1.98B	2.04B	1.97B	2.13B	2.35B	2.78B	2.41B	2.26B	1.92B
Long-Term Investments	367M	179M	268M	251M	258M	267M	274M	244M	254M	331M
Other Non-Current Assets	617M	669M	677M	727M	694M	685M	742M	583M	1.29B	569M
Total Assets+	17.08B	15.77B	16.54B	16.02B	17.71B	19.56B	21.35B	20.74B	21.65B	19.43B
Asset Turnover	0.83x	0.90x	0.89x	0.96x	0.86x	0.71x	0.79x	0.75x	0.75x	0.82x
Asset Growth %	-0.03%	-0.08%	0.05%	-0.03%	0.11%	0.1%	0.09%	-0.03%	0.04%	-0.1%
Total Current Liabilities+	4.7B	4.25B	3.9B	4.37B	4.38B	4.83B	4.77B	4.72B	5.05B	5.01B
Accounts Payable	2.72B	2.8B	3.16B	3.01B	2.91B	3.16B	3.73B	3.47B	3.31B	3.04B
Days Payables Outstanding	127.32	133.29	140.59	121.94	122.75	148.12	132.54	127.05	124.72	119.73
Short-Term Debt	281M	629M	12M	651M	513M	578M	9M	313M	306M	939M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	1.13B	288M	180M	179M	281M	366M	260M	215M	555M	294M
Current Ratio	1.43x	1.55x	1.66x	1.36x	1.41x	1.41x	1.42x	1.52x	1.47x	1.31x
Quick Ratio	1.08x	1.19x	1.22x	0.96x	1.02x	1.05x	0.97x	1.04x	1.09x	0.94x
Cash Conversion Cycle	19.88	6.69	8.18	17.91	15.8	5.23	12.97	33.3	15.79	21.85
Total Non-Current Liabilities+	7.31B	6.6B	6.97B	6.91B	7.93B	8.91B	10.17B	9.31B	8.57B	7.46B
Long-Term Debt	4.03B	3.79B	4.13B	4.37B	4.54B	5.17B	6.57B	6.5B	5.75B	4.88B
Capital Lease Obligations	0	0	0	0	622M	677M	693M	636M	417M	454M
Deferred Tax Liabilities	460M	417M	442M	429M	452M	435M	646M	501M	500M	405M
Other Non-Current Liabilities	2.83B	2.4B	2.4B	2.12B	2.32B	2.63B	2.26B	1.67B	1.91B	1.72B
Total Liabilities	12.01B	10.86B	10.87B	11.28B	12.3B	13.74B	14.94B	14.04B	13.62B	12.47B
Total Debt+	4.31B	4.42B	4.15B	5.02B	5.84B	6.61B	7.47B	7.63B	6.6B	6.39B
Net Debt	3B	2.6B	2.71B	4.11B	4.63B	4.78B	6.46B	6.54B	5.11B	5.13B
Debt / Equity	0.85x	0.90x	0.73x	1.06x	1.08x	1.14x	1.16x	1.14x	0.82x	0.92x
Debt / EBITDA	1.79x	2.71x	1.68x	2.13x	2.38x	2.89x	3.32x	3.52x	2.59x	2.30x
Net Debt / EBITDA	1.25x	1.59x	1.10x	1.74x	1.88x	2.09x	2.88x	3.01x	2.00x	1.84x
Interest Coverage	15.55x	9.51x	19.18x	15.78x	14.74x	12.90x	13.93x	9.98x	8.24x	9.49x
Total Equity+	5.07B	4.91B	5.67B	4.73B	5.4B	5.82B	6.41B	6.71B	8.02B	6.96B
Equity Growth %	-0.04%	-0.03%	0.15%	-0.17%	0.14%	0.08%	0.1%	0.05%	0.2%	-0.13%
Book Value per Share	18.53	18.37	22.01	19.28	22.68	24.44	26.78	28.27	33.82	29.64
Total Shareholders' Equity	4.98B	4.83B	5.56B	4.63B	5.28B	5.69B	6.29B	6.59B	7.83B	6.79B
Common Stock	969M	969M	969M	969M	969M	969M	969M	969M	969M	969M
Retained Earnings	15.52B	15.98B	17.14B	18.13B	18.91B	19.47B	20.37B	20.83B	21.5B	21.99B
Treasury Stock	-9.44B	-10.47B	-11.25B	-12.96B	-13.19B	-13.16B	-13.39B	-13.53B	-13.6B	-14.34B
Accumulated OCI	-2.7B	-2.36B	-2.06B	-2.3B	-2.35B	-2.6B	-2.75B	-2.81B	-2.24B	-3.11B
Minority Interest	86M	87M	115M	102M	119M	126M	125M	117M	191M	177M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.84B	1.32B	1.57B	1.47B	2.08B	2.13B	1.56B	963M	2.41B	1.42B
Operating CF Margin %	0.13%	0.09%	0.11%	0.1%	0.14%	0.15%	0.09%	0.06%	0.15%	0.09%
Operating CF Growth %	0.2%	-0.28%	0.18%	-0.06%	0.42%	0.02%	-0.27%	-0.38%	1.5%	-0.41%
Net Income	1.33B	565M	1.39B	1.34B	1.27B	1.07B	1.44B	1.03B	1.26B	1.38B
Depreciation & Amortization	446M	440M	460M	497M	511M	509M	561M	502M	514M	492M
Stock-Based Compensation	54M	45M	35M	37M	39M	44M	57M	34M	56M	42M
Deferred Taxes	159M	155M	36M	45M	-5M	-47M	35M	-151M	-187M	-97M
Other Non-Cash Items	97M	273M	-9M	-46M	215M	212M	-344M	-25M	478M	207M
Working Capital Changes	-34M	-143M	-346M	-406M	51M	341M	-188M	-432M	288M	-601M
Change in Receivables	-125M	-68M	-76M	-69M	121M	187M	-63M	-248M	12M	-181M
Change in Inventory	37M	56M	-116M	-109M	145M	111M	-279M	-177M	145M	-27M
Change in Payables	0	0	188M	-76M	-63M	127M	295M	21M	151M	-259M
Cash from Investing+	-395M	436M	-67M	-764M	-1.01B	-1.45B	-2.4B	-461M	-556M	107M
Capital Expenditures	-430M	-380M	-360M	-411M	-413M	-304M	-371M	-486M	-516M	-721M
CapEx % of Revenue	0.03%	0.03%	0.02%	0.03%	0.03%	0.02%	0.02%	0.03%	0.03%	0.05%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-19M	-9M	22M	30M	27M	9M	104M	22M	33M	534M
Cash from Financing+	-754M	-1.18B	-1.95B	-1.21B	-758M	-59M	93M	-409M	-1.55B	-1.43B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-383M	-414M	-434M	-453M	-468M	-496M	-536M	-570M	-598M	-622M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-105M	-25M	-78M	-29M	-61M	-62M	12M	-26M	-16M	-25M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	1.36B	923M	1.21B	1.06B	1.67B	1.83B	1.19B	477M	1.9B	699M
FCF Margin %	0.1%	0.06%	0.08%	0.07%	0.11%	0.13%	0.07%	0.03%	0.12%	0.04%
FCF Growth %	0.45%	-0.32%	0.31%	-0.13%	0.58%	0.1%	-0.35%	-0.6%	2.97%	-0.63%
FCF per Share	4.97	3.45	4.69	4.30	7.00	7.68	4.97	2.01	7.99	2.98
FCF Conversion (FCF/Net Income)	1.31x	1.52x	0.98x	1.09x	1.67x	2.01x	1.09x	0.94x	1.90x	1.27x
Interest Paid	115M	118M	100M	108M	127M	153M	140M	156M	213M	0
Taxes Paid	383M	349M	648M	380M	348M	367M	491M	452M	495M	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	27.21%	17.49%	30.12%	25.78%	24.53%	18.88%	23.54%	15.64%	17.24%	14.89%
Return on Invested Capital (ROIC)	17.64%	11.45%	19.01%	16.21%	15.46%	12.94%	10.78%	9.57%	11.57%	13.6%
Gross Margin	45.33%	46.29%	44.34%	41.45%	42.87%	43.78%	38.78%	36.12%	40.41%	41.61%
Net Margin	9.87%	6.12%	10.81%	8.72%	8.21%	7.66%	8.56%	6.57%	7.82%	7.04%
Debt / Equity	0.85x	0.90x	0.73x	1.06x	1.08x	1.14x	1.16x	1.14x	0.82x	0.92x
Interest Coverage	15.55x	9.51x	19.18x	15.78x	14.74x	12.90x	13.93x	9.98x	8.24x	9.49x
FCF Conversion	1.31x	1.52x	0.98x	1.09x	1.67x	2.01x	1.09x	0.94x	1.90x	1.27x
Revenue Growth	-3.72%	0.2%	3.35%	4.24%	-1.48%	-8.66%	21.45%	-7.07%	4.02%	-2.44%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Performance Coatings	8.77B	8.58B	8.73B	9.09B	9.03B	8.49B	10.33B	10.69B	11.16B	-
Performance Coatings Growth	-	-2.11%	1.77%	4.07%	-0.58%	-5.97%	21.64%	3.49%	4.39%	-
Industrial Coatings	5.48B	5.69B	6.02B	6.29B	6.11B	5.34B	6.47B	6.96B	7.08B	-
Industrial Coatings Growth	-	3.91%	5.75%	4.47%	-2.78%	-12.65%	21.17%	7.56%	1.78%	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
EMEA	-	-	-	4.68B	4.55B	4.33B	5.44B	5.46B	5.62B	5.39B
EMEA Growth	-	-	-	-	-2.76%	-4.86%	25.60%	0.40%	2.89%	-4.10%
North America	-	-	-	6.49B	6.47B	5.67B	6.68B	7.38B	7.49B	5.35B
North America Growth	-	-	-	-	-0.15%	-12.46%	17.78%	10.61%	1.41%	-28.53%
Asia Pacific	-	-	-	2.62B	2.54B	2.43B	2.98B	2.82B	2.87B	2.91B
Asia Pacific Growth	-	-	-	-	-2.90%	-4.37%	22.46%	-5.17%	1.81%	1.32%
Latin America	-	-	-	1.59B	1.58B	1.41B	1.71B	1.99B	2.27B	2.19B
Latin America Growth	-	-	-	-	-0.82%	-10.95%	21.75%	16.00%	14.14%	-3.22%

Frequently Asked Questions

Valuation & Price

PPG Industries, Inc. (PPG) has a price-to-earnings (P/E) ratio of 22.7x. This is roughly in line with market averages.

Growth & Financials

PPG Industries, Inc. (PPG) reported $14.13B in revenue for fiscal year 2024. This represents a 7% increase from $13.15B in 2011.

PPG Industries, Inc. (PPG) saw revenue decline by 2.4% over the past year.

Yes, PPG Industries, Inc. (PPG) is profitable, generating $996.0M in net income for fiscal year 2024 (7.0% net margin).

Dividend & Returns

Yes, PPG Industries, Inc. (PPG) pays a dividend with a yield of 2.45%. This makes it attractive for income-focused investors.

PPG Industries, Inc. (PPG) has a return on equity (ROE) of 14.9%. This is reasonable for most industries.

PPG Industries, Inc. (PPG) generated $725.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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