Aureus
BGood

PPG Industries, Inc.(PPG)

B

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin7.3%Free Cash Flow / Revenue
Cash Conversion123.2%Operating CF / Net Income
Free Cash Flow$1.2B
Revenue$15.9B
Net Cash-$5.7BNet debt position
Debt / FCF6.8xElevated debt burden
Current Ratio1.62Adequate short-term liquidity
YoY FCF Growth+200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
-0.5Elevated debt-to-FCF ratio (6.8x)
→
+1Strong YoY FCF growth (200.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.12)
→
FinalB

Analysis Summary

Strengths

  • Excellent cash conversion (123%)
  • Strong YoY FCF growth (+200.0%)

Concerns

  • Low FCF margin (7.3%)
  • Heavy debt position ($5.7B net debt, 6.8x FCF)
  • High debt-to-FCF ratio (6.8x)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.3%
Net Margin9.9%
Operating CF Margin12.2%
CapEx Ratio4.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.7BNet debt position
Debt / FCF6.8xElevated debt burden
Current Ratio1.62Strong liquidity
Debt / Equity0.99Low leverage

Quarterly FCF Trend

+200.0% YoYImproving (+200.0%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NamePPG Industries, Inc.
SectorMaterials
Free Cash Flow$1.2B
Revenue$15.9B
Net Income$1.6B
Operating Cash Flow$1.9B
Capital Expenditure$778.0M
FCF Margin7.3%
Cash Conversion Rate123.2%
Net Margin9.9%
Total Debt$7.9B
Total Cash$2.2B
Net Cash-$5.7B
Current Ratio1.62
Debt / Equity0.99
Debt / FCF6.8x
YoY FCF Growth+200.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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