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FRed Flag

PPG Industries, Inc.(PPG)

F

Financial data as of Dec 31, 2024Declining · Materials

FCF Margin4.4%Free Cash Flow / Revenue
Cash Conversion127.2%Operating CF / Net Income
Free Cash Flow$699.0M
Revenue$15.8B
Net Cash-$5.1BNet debt position
Debt / FCF9.1xElevated debt burden
Current Ratio1.31Adequate short-term liquidity
YoY FCF Growth-13.6%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-1High debt-to-FCF ratio (9.1x)
→
-0.5FCF trend declining (-13.6% YoY)
→
-0.5Highly volatile FCF (consistency: 1.12)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (127%)

Concerns

  • Low FCF margin (4.4%)
  • Heavy debt position ($5.1B)
  • High debt-to-FCF ratio (9.1x)
  • Highly volatile quarterly FCF
  • Significant FCF decline (-13.6% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin4.4%
Net Margin7.0%
Operating CF Margin9.0%
CapEx Ratio4.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.1BNet debt position
Debt / FCF9.1xElevated debt burden
Current Ratio1.31Adequate liquidity
Debt / Equity0.94Low leverage

Quarterly FCF Trend

-13.6% YoYDeclining (-13.6%)

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$699.0M
Revenue$15.8B
Net Income$1.1B
Operating Cash Flow$1.4B
Capital Expenditure$721.0M
FCF Margin4.4%
Cash Conversion Rate127.2%
Net Margin7.0%
Total Debt$6.4B
Total Cash$1.3B
Net Cash-$5.1B
Current Ratio1.31
Debt / Equity0.94
Debt / FCF9.1x
YoY FCF Growth-13.6%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeF
Data SourceYahoo Finance

Related Research

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Sector Report5 min read

Materials: Six A-Grades and Six Total Failures

The materials sector splits cleanly in half: six companies generating real cash, six burning through it. CF's 29.5% margin sits 1,800 basis points above the sector median.

Feb 13, 2026
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