PPG Industries Inc. (PPG) Stock

PPG Industries Inc. trades at a P/E ratio of 18.94, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 12.15 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.68 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.14, PPG Industries Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 3.09 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

PPG Industries Inc. achieves a profit margin of 6.46%, meaning it retains $6.46 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 15.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.60% and ROA at 6.06%, the company generates strong returns on invested capital.

PPG Industries Inc.'s revenue declined by 0.90% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 11.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SPECIALTY CHEMICALS industry averages for proper context.

PPG Industries Inc. offers a dividend yield of 2.61%, paying $2.72 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 11, 2025.

The dividend sustainability can be assessed through the payout ratio - PPG Industries Inc. pays $2.72 per share in dividends against earnings of $5.55 per share, resulting in a payout ratio of 49.01%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Sep 12, 2025.

PPG Industries Inc. has a market capitalization of $23.7B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 225.70M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SPECIALTY CHEMICALS industry, it competes with other firms in this sector.

PPG Industries Inc.'s book value per share is $33.57, while the current stock price is $98.57, resulting in a price-to-book (P/B) ratio of 2.94. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

24 analysts cover PPG with 38% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $127.00 implies 28.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:09 Buy, 15 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.