This is our first report on PPG, a well-known manufacturer of paints, coatings and specialty materials. The company’s last quarter’s performance was solid and it surpassed the revenue expectations of Wall Street with the growth being supported by ongoing real-time price hikes. The company performed well in several of its companies, notably PPG Comex. Their American packaging coatings and worldwide automobile refinish Traffic Solutions division have been performing well off-late. The aircraft sector has also experienced excellent double-digit percentage sales growth, with volume growth assisted by increased airline traffic. The management anticipates this business to expand well through 2023 due to the industry’s continued recovery, a healthy order backlog, and PPG’s superior technology offerings. Besides, they kept moving forward with The Home Depot’s expanded Pro Painting strategy during the quarter. They also began collaborating with the HD Supply team to find new paint clients, particularly in the commercial maintenance sector. While still in its early stages, this collaboration has been strong and will be another catalyst for future growth in the U.S. architectural coatings industry. Even though the economic condition is challenging, the management remains optimistic about its ability to generate future profits. We initiate coverage on the stock of PPG Industries with a ‘Hold’ rating.
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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