PPG Industries, Inc. (PPG)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I ask whether PPG is a durable business bought at a sensible price. It makes necessary, repeat-use coatings across architectural, performance and industrial markets, and its global scale gives it some customer and distribution advantages. But it is classified by FairStock as a cyclical specialty chemical company, and the numbers show why: in fiscal 2023 revenue was $16.2B, net income $1.3B and diluted EPS $5.35; in fiscal 2024 revenue slipped to $15.8B, net income $1.1B and EPS $4.75; then fiscal 2025 recovered to $15.9B revenue, $1.6B net income and $6.94 EPS. That is a respectable rebound, but not a smooth growth record. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $3.9B, net income $382.0M and diluted EPS $1.70, up modestly from fiscal Q1 2025's $3.7B, $373.0M and $1.63. Financial health is decent: FairStock shows ROE of 19.30%, Piotroski F-Score 7/9, Altman Z-Score 2.91 and FCF yield 6.0%, though ROCE of 6.05% and D/E of 0.87 suggest capital intensity and leverage. At the 2026-10-13 close of $104.55, FairStock calculates a P/E of 15.0, P/B of 2.75 and EV/EBITDA of 10.36. The Graham Number is $77.18, meaning the price is about 35% above that conservative measure. Its scale and repeat-use products give it a narrow moat at best; ROCE of 6.05% does not scream pricing power. I would call the quality above average but the price fair, not compelling. The dividend yield of 2.83% and free cash flow offer support, but cyclical profit swings mean I would demand a larger discount before calling it a true value opportunity.

In plain English: PPG makes paints and coatings used in homes, vehicles, and industry. The business is profitable and generates steady cash, but its results move with the economic cycle, and recent filed results show uneven sales and earnings. At the 2026-10-13 close of $104.55, the price looks fair to expensive against the company's accounting value and a conservative value estimate, so it is not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer