PPG Industries Inc.
Find Ratings ReportsPPG INDUSTRIES INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. PPG INDUSTRIES INC has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 18.81% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 4350.0 | 4185.0 |
EBITDA ($mil) | 594.0 | 499.0 |
EBIT ($mil) | 444.0 | 366.0 |
Net Income ($mil) | 90.0 | 238.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1598.0 | 1163.0 |
Total Assets ($mil) | 21647.0 | 20744.0 |
Total Debt ($mil) | 6870.0 | 7635.0 |
Equity ($mil) | 7832.0 | 6592.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 41.82 | 37.32 |
EBITDA Margin | 13.65 | 11.92 |
Operating Margin | 10.21 | 8.75 |
Sales Turnover | 0.84 | 0.85 |
Return on Assets | 5.86 | 4.94 |
Return on Equity | 16.22 | 15.59 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.47 | 1.52 |
Debt/Capital | 0.47 | 0.54 |
Interest Expense | 57.0 | 53.0 |
Interest Coverage | 7.79 | 6.91 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 235.21 | 235.07 |
Div / share | 0.65 | 0.62 |
EPS | 0.38 | 1.01 |
Book value / share | 33.3 | 28.04 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1724545.0 | 1568397.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a value on par with the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.17 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, PPG INDUSTRIES INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PPG 26.02 | Peers 85.83 | PPG 13.56 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PPG is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PPG is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PPG 14.86 | Peers 18.08 | PPG 0.45 | Peers 1.16 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. PPG is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PPG trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PPG 4.17 | Peers 19.07 | PPG 23.04 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PPG is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PPG is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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PPG 1.79 | Peers 84.44 | PPG 3.36 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PPG is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PPG significantly trails its peers on the basis of sales growth. |
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