PPG Industries, Inc.Find Ratings Reports
PPG INDUSTRIES INC's gross profit margin for the second quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. PPG INDUSTRIES INC has weak liquidity. Currently, the Quick Ratio is 0.88 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 29.18% 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||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||4359.0||3015.0|
|Net Income ($mil)||431.0||102.0|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||1311.0||2302.0|
|Total Assets ($mil)||22353.0||18170.0|
|Total Debt ($mil)||8087.0||7141.0|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||39.69||43.52|
|Return on Assets||6.81||5.52|
|Return on Equity||24.4||20.76|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||237.36||235.98|
|Div / share||0.54||0.51|
|Book value / share||26.3||20.48|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1120977.0||1557418.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 46.97 for the Chemical Manufacturing subsector and a discount compared to the S&P 500 average of 34.07. Conducting a second comparison, its price-to-book ratio of 6.10 indicates a significant premium versus the S&P 500 average of 4.54 and a premium versus the subsector average of 6.06. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. The valuation analysis reveals that, PPG INDUSTRIES INC seems to be trading at a discount to investment alternatives.
|PPG 25.16||Peers 41.16||PPG 15.92||Peers 17.38|
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.
Average. 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 valuation on par to its peers.
|PPG 18.20||Peers 24.23||PPG 0.36||Peers 2.18|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
PPG is trading at a discount to 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.
|PPG 6.10||Peers 6.06||PPG 51.54||Peers 39.16|
Average. 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 valuation on par with 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.
|PPG 2.43||Peers 3.94||PPG 12.90||Peers 5.11|
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.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
PPG has a sales growth rate that significantly exceeds its peers.