Despite macro-challenges like weak global industrial activity, high cost inflation, ongoing geopolitical issues, and waning demand in U.S. construction-related end-use markets, PPG Industries delivered an all-around beat in its recent result. The company’s first quarter sales were $4.4 billion and it produced $1.82 in adjusted earnings per diluted share from continuing operations, 33% more than in the corresponding period in 2022. Their operating segment margin recovery quickened, improving 380 basis points compared to the Q1 of 2022. During the quarter, PPG gained several new clients, including Walmart’s 3,800 paint-related retail locations. There are expected to be more development prospects due to the expansion of its Glidden DIY brand at Walmart and through its independent dealer channel. Besides, with more global rollouts planned, the company expects the automotive refinish industry to have 1,400 MOONWALK machines installed. The PPG Comex division also continues to operate effectively and produce significant sales. We give PPG Industries a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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