What markets do its coatings serve?
PPG Industries makes paints, coatings, and specialty materials used across industrial and consumer end markets. The business sells performance coatings and related products that are applied to protect, finish, or enhance surfaces. It operates at large scale and serves a wide set of customers that need consistent formulation, color, and application performance. The company’s footprint and product breadth make it a steady supplier across many coating use cases.
Are profits holding up with steady margins?
FundamentalsFor 2025, reported in USD, revenue was about USD 15.9 billion and net income was roughly USD 1.6 billion, with revenue up 0.2% versus the prior year. Profitability in the last twelve months shows a 41.39% gross margin alongside a 13.25% operating margin and a 9.83% net margin.
Capital intensity shows up in the cash investment lines. Depreciation and amortization was about USD 528 million, while capital spending ran at roughly USD 778 million. The balance sheet carried around USD 2.2 billion of cash against USD 1.4 billion of total debt. ROE over the same trailing period was 20.18%.
Is the stock priced beyond fair value?
DCF / MultiplesAt USD 120.91, the stock sits above the DCF range that runs from USD 51.30 in a weaker scenario through USD 75.39 as a central estimate to USD 98.79 in a stronger outcome. The pricing also lines up with a 17.09 P/E and 12.21 EV/EBITDA on trailing results.
Valuation Leaves Little Cushion
TakeawayThe price is asking for high-quality returns to persist. That requires steady margins and disciplined reinvestment. If returns fade, the valuation has little cushion. The setup is cautious unless performance stays unusually clean.