Ppg Industries

PPG gets 42% of its operating income from one coatings line in a $15.9B business.

If you own PPG, here's what you should know right now.

ppg

industrials large cap updated jan 23, 2026
$108.05
market cap ~$24B · 52-week range $90–$125
xvary composite: 63 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
PPG makes paints and coatings for cars, buildings, planes, and factories.
how it gets paid
Last year Ppg Industries made $15.9B in revenue. Industrial coatings was the main engine at $6.7B, or 42% of sales.
why it's growing
Revenue grew 0.2% last year. The $0.24 EPS miss mattered because it cut 13.7% off expected profit per share.
what just happened
PPG missed estimates with $1.51 EPS versus $1.75 expected.
At a glance
A balance sheet — strong enough to weather a downturn
80/100 earnings predictability — you can trust these numbers
15.1x trailing p/e — the market's not buying it — or you found a deal
2.7% dividend yield — cash in your pocket every quarter
13.5% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
PPG makes paints and coatings for cars, buildings, planes, and factories.
PPG runs 177 sites across 71 countries. That makes your supplier problem smaller when a factory in Ohio and a plant in Osaka need the same coating. Performance coatings bring 33% of sales and 42% of operating income. Operating income means profit from the core business, so that segment does a lot of the heavy lifting.
industrials mid-cap coatings dividend global
How they make money
$15.9B annual revenue · their business grew +0.2% last year
Performance coatings
$5.2B
Industrial coatings
$6.7B
Global architectural coatings
$4.0B
The products that matter
aerospace, marine, and auto refinish coatings
Performance Coatings
33% of sales · 42% of operating income
this is the profit-heavy segment. It accounts for 33% of 2024 sales but 42% of operating income, which tells you where the mix quality lives.
profit driver
broad industrial coatings portfolio
Industrial Coatings
$15.9B company revenue base
the data here is thin, but the scale is not. You are buying into a coatings platform that generated $15.9B in revenue last year and still posted a 10.6% net margin.
scale business
Key numbers
15.1x
forward p/e
You are paying 15.1 times next year's earnings for a business with a 15.0% operating margin.
$125
mean target
Wall Street's mean target sits 16% above $108.05.
2.7%
dividend yield
You collect 2.7% while you wait for the stock to wake up.
$145
long target
The 3-to-5-year target sits 34% above the current price.
Financial health
A
strength
  • balance sheet grade A — very strong financial position
  • risk rank 2 — safer than 80% of stocks
  • price stability 80 / 100
  • long-term debt $5.9B (20% of capital)
  • net profit margin 8.9% — keeps 9 cents of every dollar in revenue
  • return on equity 18% — $0.18 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market

You invested $10,000 in PPG 3 years ago → it's now worth $8,770.

The index would have given you $14,770.

source: institutional data · total return
What just happened
missed estimates
PPG missed estimates with $1.51 EPS versus $1.75 expected.
Revenue was $12.0B. The $0.24 EPS shortfall was the bigger problem, since it showed profits lagged the bar by 13.7%.
$12.0B
revenue
$1.51
eps
15.0%
operating margin
the number that mattered
The $0.24 EPS miss mattered because it cut 13.7% off expected profit per share.
source: company earnings report, 2026

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What could go wrong

the top threat is end-market demand in auto, aerospace, marine, and industrial production.

med
demand slips where PPG earns its best money
Performance coatings is 33% of sales but 42% of operating income. If those end markets slow, profit gets hit faster than revenue.
That mix risk is why a seemingly modest industrial slowdown can matter more here than the top line suggests.
med
raw materials and freight move faster than pricing
Coatings businesses live on spread management. With a 10.6% net margin, there is a cushion — just not an unlimited one.
If input costs rise before PPG can pass them through, the 15.1x earnings multiple stops looking as cheap as it first appears.
med
the market is already expecting softer revenue
Reported revenue is $15.9B, but the FY2026 estimate on this page is $15B. The street is pricing in some giveback from the last growth print.
If revenue lands below that reduced bar, you are no longer buying temporary skepticism. You are buying a slowdown.
PPG's risk picture is simple: a $15.9B coatings business with real quality still depends on industrial activity, cost discipline, and that profit-heavy 33% slice of sales holding up.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
whether $15.9B holds up against the $15B estimate
That gap tells you if the market is being cautious or correctly skeptical.
trend
momentum is still bad
The stock sits in the bottom 5% on technical score. Cheap-looking stocks can stay cheap-looking for a while.
risk
performance coatings mix
A business that produces 42% of operating income from 33% of sales deserves its own spotlight.
next checkpoint
the next earnings print
You want to see whether full-year EPS can build on $7.15 instead of merely defending it.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts do not expect this stock to lead the tape over the next stretch.
risk profile
lower risk
stability score 2 — safer than roughly 80% of stocks. You own steadiness, not fireworks.
chart momentum
bottom 5%
technical score 5 is the lowest rating. The chart is saying “show me” before it says “buy me.”
earnings predictability
80 / 100
management's numbers tend to arrive close to plan. In human-speak: fewer nasty surprises than the average industrial.
source: institutional data
Institutional activity

institutions have been net selling for 3 consecutive quarters — 418 buyers vs. 452 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 3 quarters.

source: institutional data
Price targets
3-5 year target range
$92 $170
$108 current price
$131 target midpoint · +21% from current · 3-5yr high: $145 (+35% · 10% ann'l return)
source: institutional data · analyst targets

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