PPG Industries Revenue vs. Net Income

PPG Stock  USD 125.79  3.14  2.56%   
Based on PPG Industries' profitability indicators, PPG Industries' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess PPG Industries' ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1985-09-30
Previous Quarter
4.8 B
Current Value
4.6 B
Quarterly Volatility
1.1 B
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current Price To Sales Ratio is estimated to decrease to 1.05. The current Days Sales Outstanding is estimated to decrease to 54.54. At this time, PPG Industries' Interest Income is most likely to increase significantly in the upcoming years. The PPG Industries' current Net Income Per Share is estimated to increase to 5.65, while Operating Income is projected to decrease to roughly 1.4 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.4136
Way Down
Slightly volatile
Net Profit Margin0.0590.0696
Fairly Down
Slightly volatile
Operating Profit Margin0.140.1526
Significantly Down
Slightly volatile
Pretax Profit Margin0.120.0958
Significantly Up
Very volatile
Return On Assets0.06060.0587
Sufficiently Up
Slightly volatile
Return On Equity0.140.1622
Fairly Down
Slightly volatile
For PPG Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PPG Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PPG Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PPG Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PPG Industries over time as well as its relative position and ranking within its peers.
  

PPG Industries' Revenue Breakdown by Earning Segment

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For more detail on how to invest in PPG Stock please use our How to Invest in PPG Industries guide.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PPG Industries. If investors know PPG will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PPG Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.117
Dividend Share
2.63
Earnings Share
6.3
Revenue Per Share
76.764
Quarterly Revenue Growth
(0.01)
The market value of PPG Industries is measured differently than its book value, which is the value of PPG that is recorded on the company's balance sheet. Investors also form their own opinion of PPG Industries' value that differs from its market value or its book value, called intrinsic value, which is PPG Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PPG Industries' market value can be influenced by many factors that don't directly affect PPG Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PPG Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if PPG Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PPG Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PPG Industries Net Income vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PPG Industries's current stock value. Our valuation model uses many indicators to compare PPG Industries value to that of its competitors to determine the firm's financial worth.
PPG Industries is rated top company in revenue category among its peers. It is regarded second in net income category among its peers making up about  0.07  of Net Income per Revenue. The ratio of Revenue to Net Income for PPG Industries is roughly  14.37 . At this time, PPG Industries' Total Revenue is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value PPG Industries by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

PPG Revenue vs. Competition

PPG Industries is rated top company in revenue category among its peers. Market size based on revenue of Materials industry is at this time estimated at about 26.27 Billion. PPG Industries totals roughly 18.25 Billion in revenue claiming about 69% of all equities under Materials industry.

PPG Net Income vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

PPG Industries

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
18.25 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

PPG Industries

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.27 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

PPG Net Income Comparison

PPG Industries is currently under evaluation in net income category among its peers.

PPG Industries Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PPG Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PPG Industries will eventually generate negative long term returns. The profitability progress is the general direction of PPG Industries' change in net profit over the period of time. It can combine multiple indicators of PPG Industries, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.2 B-2.1 B
Operating Income2.8 B1.4 B
Income Before Tax1.7 B1.2 B
Total Other Income Expense Net-1 B-984.2 M
Net Income1.3 B861.3 M
Income Tax Expense439 M354.4 M
Net Income Applicable To Common Shares1.2 B1.2 B
Net Income From Continuing Ops1.3 B1.3 B
Non Operating Income Net Other131.1 M137.7 M
Interest Income140 M147 M
Net Interest Income-107 M-112.3 M
Change To Netincome-81.9 M-77.8 M
Net Income Per Share 5.38  5.65 
Income Quality 1.90  1.02 
Net Income Per E B T 0.73  0.61 

PPG Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PPG Industries. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PPG Industries position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PPG Industries' important profitability drivers and their relationship over time.

Use PPG Industries in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PPG Industries position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PPG Industries will appreciate offsetting losses from the drop in the long position's value.

PPG Industries Pair Trading

PPG Industries Pair Trading Analysis

The ability to find closely correlated positions to PPG Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PPG Industries when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PPG Industries - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PPG Industries to buy it.
The correlation of PPG Industries is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PPG Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PPG Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PPG Industries can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PPG Industries position

In addition to having PPG Industries in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Restaraunts Hotels Motels
Restaraunts Hotels Motels Theme
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When determining whether PPG Industries is a strong investment it is important to analyze PPG Industries' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PPG Industries' future performance. For an informed investment choice regarding PPG Stock, refer to the following important reports:
Check out Your Equity Center.
For more detail on how to invest in PPG Stock please use our How to Invest in PPG Industries guide.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
To fully project PPG Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PPG Industries at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PPG Industries' income statement, its balance sheet, and the statement of cash flows.
Potential PPG Industries investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PPG Industries investors may work on each financial statement separately, they are all related. The changes in PPG Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PPG Industries's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.