Buy or Fear PPG Industries Stock?

Core Viewpoint - PPG Industries stock is currently viewed as unattractive, with a price around $105, due to multiple significant concerns regarding its valuation and operational performance [2][3]. Valuation Comparison - PPG stock is valued comparably to the broader market in terms of cost per dollar of sales or profit [4]. Revenue Performance - PPG Industries has experienced a decline in revenues over recent years, with a quarterly revenue drop of 4.3% to $3.7 billion from $3.8 billion year-over-year, contrasting with a 4.5% increase for the S&P 500 [5][6]. Profitability Metrics - PPG's profit margins are less favorable compared to most companies in the Trefis coverage universe, with a price-to-sales (P/S) ratio of 1.7 versus 3.1 for the S&P 500, and a price-to-free cash flow (P/FCF) ratio of 30.9 compared to 20.3 for the S&P 500 [7][8]. Operating Performance - The company's operating income over the last four quarters was $2.2 billion, resulting in an operating margin of 14.8%, which is lower than the S&P 500's 18.3% [8]. Financial Stability - PPG Industries has a moderate debt-to-equity ratio of 32.5%, with total debt of $7.9 billion against a market capitalization of $24 billion, indicating a decent balance sheet [9]. Downturn Resilience - PPG stock has underperformed the S&P 500 during recent downturns, including a 40.5% drop during the inflation shock of 2022, compared to a 25.4% decline for the S&P 500 [10][11]. Overall Performance Assessment - The overall performance of PPG Industries is categorized as very weak across growth, profitability, downturn resilience, and financial stability metrics, leading to the conclusion that it is a poor investment choice at this time [15].