PPG Industries
PPG
$120.65
-0.72%
PPG Industries, Inc. is a global leader in the manufacturing and distribution of paints, coatings, and specialty materials, operating within the Basic Materials sector under the Specialty Chemicals industry. As the world's second-largest producer of paints and coatings, the company maintains a distinct competitive identity through its diversified portfolio serving a wide array of industrial, architectural, and consumer end-markets, including automotive, aerospace, and protective marine applications. The current investor narrative is centered on the company's recovery trajectory and margin expansion following a period of volatility, with recent news highlighting its inclusion among S&P 500 stocks analysts view as oversold and poised for a rebound, suggesting a focus on operational execution and potential valuation upside.…
PPG
PPG Industries
$120.65
Related headlines
PPG 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on PPG Industries's 12-month outlook, with a consensus price target around $156.84 and implied upside of +30.0% versus the current price.
Average Target
$156.84
11 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
11
covering this stock
Price Range
$97 - $157
Analyst target range
PPG is covered by 11 analysts, indicating substantial institutional research interest. While a specific consensus recommendation (e.g., Buy/Hold/Sell) and average target price are not provided in the dataset, the institutional ratings show a mix of bullish and neutral stances, with recent actions from firms like Mizuho (Outperform), Wells Fargo (Overweight), Citigroup (Buy), and JP Morgan (Overweight) balanced by RBC Capital (Sector Perform) and UBS (Neutral), suggesting a leaning towards a cautiously optimistic view. The target price range is also not specified in the data, but the presence of both 'Outperform/Overweight/Buy' and 'Sector Perform/Neutral' ratings implies a range of opinions; the high targets likely assume successful execution of margin initiatives and volume growth in key end markets, while the low targets may price in macroeconomic sensitivity and raw material cost pressures, with the recent lack of downgrades in the provided list indicating analyst sentiment has stabilized following the company's recovery.
PPG Technical Analysis
The prevailing price trend for PPG is one of recovery and consolidation following a significant drawdown, with the stock posting a 1-year price change of +6.525% but trading at approximately 89% of its 52-week range, with a current price of $119.34 relative to a 52-week high of $133.43 and low of $93.39. This positioning near the upper end of the range indicates regained momentum but also suggests potential resistance near recent highs, requiring a breakout for sustained upward movement. Recent short-term momentum is notably strong and accelerating, with a 1-month price change of +13.1614% and a 3-month change of +17.1263%, significantly outpacing the broader market as evidenced by a relative strength of +13.2414% over one month; this divergence from the more modest 1-year performance signals a potential trend reversal or a powerful mean reversion rally from oversold conditions earlier in the year. Key technical levels are clearly defined by the 52-week low of $93.39 as major support and the 52-week high of $133.43 as primary resistance, with a breakout above $133.43 needed to confirm a new bullish phase; the stock's beta of 1.062 indicates volatility roughly in line with the market, which, combined with a short ratio of 4.17, suggests a crowded short position that could fuel further upside on positive catalysts.
Beta
1.06
1.06x market volatility
Max Drawdown
-26.1%
Largest decline past year
52-Week Range
$93-$133
Price range past year
Annual Return
+10.6%
Cumulative gain past year
| Period | PPG Return | S&P 500 |
|---|---|---|
| 1m | +17.5% | +1.5% |
| 3m | +19.7% | +13.4% |
| 6m | +17.2% | +10.9% |
| 1y | +10.6% | +24.5% |
| ytd | +15.6% | +10.0% |
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PPG Fundamental Analysis
PPG's revenue trajectory shows a strong recovery from a weak prior-year period, with Q4 2025 revenue of $3.914 billion representing a significant 80.79% year-over-year growth; however, this growth is partially inflated by an easy comparison to Q4 2024's depressed $2.165 billion, and a sequential decline from Q3 2025's $4.082 billion indicates some quarter-to-quarter volatility, with segment data showing the Industrial Coatings segment ($1.656B) as the largest contributor, followed by Performance Coatings ($1.414B) and Global Architectural Coatings ($1.012B). The company is profitable, with Q4 2025 net income of $300 million and a net margin of 7.66%, while gross margin for the quarter was 37.4%, showing stability; comparing to prior quarters, Q3 2025 saw a higher gross margin of 40.57% and net margin of 11.10%, indicating some margin compression in Q4, but the overall trend from a net loss of -$280 million in Q4 2024 demonstrates a substantial recovery towards sustainable profitability. Balance sheet and cash flow health appear solid, with a current ratio of 1.62 indicating sufficient short-term liquidity, and the company generated robust free cash flow of $586 million in Q4 2025, contributing to a trailing twelve-month free cash flow of $1.163 billion; however, a negative debt-to-equity ratio of -2.10 and a negative return on equity (ROE) of -44.48% are notable anomalies likely stemming from accounting adjustments or one-time charges affecting shareholder equity, though a positive return on assets (ROA) of 6.28% suggests the core operations remain efficient in generating profits from its asset base.
Quarterly Revenue
$3.9B
2025-12
Revenue YoY Growth
+0.80%
YoY Comparison
Gross Margin
+0.37%
Latest Quarter
Free Cash Flow
$1.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is PPG Overvalued?
Given PPG's positive net income of $300 million in the latest quarter, the primary valuation metric selected is the Price-to-Earnings (PE) ratio. The stock trades at a trailing PE of 14.71x and a forward PE of 13.77x, with the modest discount between the two suggesting the market anticipates only slight earnings growth or stabilization in the near term. Compared to broader industry averages, PPG's valuation appears reasonable; for instance, its forward PE of 13.77x is not explicitly compared to a sector average in the provided data, but its Price-to-Sales (PS) ratio of 1.46x and EV-to-Sales of 2.02x suggest a market capitalization that is a moderate multiple of its revenue base, typical for a mature industrial company with cyclical characteristics. Historical context shows the current trailing PE of 14.71x is below the stock's own historical range observed in recent quarters, such as the 19.16x at the end of Q4 2025 and peaks above 20x in 2024, indicating the stock is trading at a discount to its own historical valuation, which could represent a value opportunity if fundamentals continue to recover, though it may also reflect lowered growth expectations.
PE
14.7x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range -25x~431x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.1x
Enterprise Value Multiple

