PPG Industries, Inc. (PPG) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Basic Materials · Specialty Chemicals
Is PPG Industries, Inc. a safe investment right now?
PPG Industries, Inc.'s Altman Z-Score of 3.75 places it in the safe zone. Our fair value estimate is $100.01 (Fairly Valued). Moat rating: 3.7/5 stars.
Could PPG Industries, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 3.75 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives PPG's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1384 | 1.2 | 0.17 |
| B · Retained Earnings / Total Assets | RE / TA | 1.0382 | 1.4 | 1.45 |
| C · EBIT / Total Assets | EBIT / TA | 0.1034 | 3.3 | 0.34 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.785 | 0.6 | 1.07 |
| E · Revenue / Total Assets | Rev / TA | 0.7184 | 1.0 | 0.72 |
How has PPG's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 3.61 | Safe |
| 2023 | 3.67 | Safe |
| 2024 | 4.05 | Safe |
| 2025 | 3.75 | Safe |
Source: Calculated from PPG's latest 10-K filing on SEC EDGAR.
What is PPG Industries, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $7.30 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $6.94 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $7.84 | 20 analysts consensus |
| Trailing P/E | 16.1x | Current market pricing |
| Fair P/E (β discount) | 13.7x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $122.00 (20 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does PPG Industries, Inc. have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up PPG's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is PPG's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 11.3% | — |
| 2023 | 14.0% | Rising |
| 2024 | 16.6% | Rising |
| 2025 | 15.0% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is PPG Industries, Inc.'s dividend safe?
Can PPG Industries, Inc. afford its dividend?
Payout ratio is 40.2%. FCF covers the dividend 0.8x. 44 consecutive years of payments.
PPG Industries, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $15.9B | $15.8B | $15.6B | Stable |
| Net Income | $1.6B | $1.1B | $1.0B | Rising |
| Free Cash Flow | $1.2B | $0.7B | $0.5B | Rising |
| Gross Margin | 41.3% | 41.6% | 36.1% | Rising |
Recent events that affect our PPG analysis
PPG earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.74. Revenue estimate: $3.85B. Our current Fair Value: $100.01 — a significant beat or miss could shift this estimate.
PPG analyst consensus: 39% bullish (9 of 23 analysts)
1 Strong Buy, 8 Buy, 14 Hold, 0 Sell, 0 Strong Sell. Consensus target: $122.00 (9.3% upside). Compare with our independent Fair Value: $100.01.
PPG paid $0.7100/share dividend
Dividend Safety Grade: B. Payout ratio: 40.2%.
PPG missed EPS estimates by 4.4%
Reported EPS: $1.51 vs estimate $1.58. Our Fair Value of $100.01 may face downward pressure if the trend continues.
PPG paid $0.7100/share dividend
Dividend Safety Grade: B. Payout ratio: 40.2%.
PPG beat EPS estimates by 2.3%
Reported EPS: $2.13 vs estimate $2.08. Earnings strength supports our Fair Value of $100.01 (10.4% below current price).
PPG paid $0.7100/share dividend
Dividend Safety Grade: B. Payout ratio: 40.2%.
PPG missed EPS estimates by 0.0%
Reported EPS: $2.22 vs estimate $2.22. Our Fair Value of $100.01 may face downward pressure if the trend continues.
PPG paid $0.6800/share dividend
Dividend Safety Grade: B. Payout ratio: 40.2%.
PPG beat EPS estimates by 6.0%
Reported EPS: $1.72 vs estimate $1.62. Earnings strength supports our Fair Value of $100.01 (10.4% below current price).
PPG paid $0.6800/share dividend
Dividend Safety Grade: B. Payout ratio: 40.2%.
PPG missed EPS estimates by 1.5%
Reported EPS: $1.61 vs estimate $1.63. Our Fair Value of $100.01 may face downward pressure if the trend continues.
Common questions about PPG Industries, Inc.
What is PPG Industries, Inc. stock price today?
PPG Industries, Inc. (PPG) stock price is $111.67 as of the latest market close, traded on the NYSE exchange.
What does PPG Industries, Inc. do?
PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through three segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings.
What is PPG Industries, Inc. market cap?
PPG Industries, Inc. has a market capitalization of $24.99B, classifying it as a large-cap stock in the Basic Materials sector.
What sector and industry is PPG in?
PPG Industries, Inc. operates in the Basic Materials sector, specifically within the Specialty Chemicals industry. It trades on the NYSE under the ticker symbol PPG.
Is PPG stock overvalued or undervalued?
Based on our valuation model, PPG Industries, Inc. trades 11.7% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $100.01
- Current Price: $111.67
- Valuation Zone: Fairly Valued
What is PPG stock forecast and analyst target price?
Based on 20 Wall Street analysts, the consensus price target for PPG Industries, Inc. is $122.00, implying upside of 9.3% from the current price.
- Analyst High Target: $135.00
- Analyst Low Target: $105.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is PPG Industries, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for PPG Industries, Inc.:
- Revenue growth (current year est.): 3.9%
- EPS growth (current year est.): 3.5%
- Revenue growth (next year est.): 3.3%
- EPS growth (next year est.): 9.5%
What are PPG Industries, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $15.9B | Stable |
| Net Income | $1.6B | Rising |
| Free Cash Flow | $1.2B | Rising |
| Gross Margin | 41.3% | Rising |
What is PPG's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 16.1x
- Forward P/E (next 12 months est.): 13.0x
- FairValueLabs Fair P/E: 13.7x
How volatile is PPG stock?
PPG Industries, Inc. has a beta of 1.16, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does PPG Industries, Inc. have?
PPG Industries, Inc.'s balance sheet shows:
- Total Cash: $2.22B
- Total Debt: $7.90B
- Net Cash Position: $-5.68B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is PPG Industries, Inc.'s free cash flow?
PPG Industries, Inc. generated $538.9M in trailing twelve-month free cash flow (from $1.94B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does PPG Industries, Inc. pay a dividend, and is it safe?
Yes, PPG Industries, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.5%
- Payout Ratio: 40.2%
- Consecutive Years Paid: 44
- 5-Year Dividend Growth: -20.7%
- FairValueLabs Safety Grade: B
Is PPG Industries, Inc. at risk of going bankrupt?
PPG Industries, Inc.'s Altman Z-Score is 3.75, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does PPG Industries, Inc. have a durable competitive advantage?
PPG Industries, Inc. scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is PPG's return on equity (ROE)?
PPG Industries, Inc.'s return on equity is 21.1%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy PPG stock?
PPG shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol PPG
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is PPG a value stock or speculative?
FairValueLabs classifies PPG Industries, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of PPG Industries, Inc.?
The current CEO of PPG Industries, Inc. is Mr. Timothy M. Knavish.
What is PPG's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $6.92
- Forward EPS (next 12 months est.): $8.60
- Analyst consensus EPS (this year): $7.84
- Analyst consensus EPS (next year): $8.59
Other Basic Materials companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
PPG analysis methodology: How we calculate fair value, Z-Scores, and moat ratings