PPG
PPG Industries Inc.
Industrial/Transportation
03/15/2013
Presented
| Date | 03/12/2013 |
| Price | $68.89 |
| Market Cap | $19.70B |
| Ent Value | $21.55B |
| P/E Ratio | 15.42x |
| Book Value | $19.05 |
| Div Yield | 1.1% |
| Shares O/S | 285.69M |
| Ave Daily Vol | 6,880,000 |
| Short Int | 9.83% |
Current
| Price | $129.87 |
| Market Cap | $30.30B |
| PPG Industries, Inc. manufactures and distributes coatings, specialty materials, and glass products. The company's Performance Coatings segment provides coatings products for automotive and commercial transport/fleet repair and refurbishing; light industrial and specialty coatings for signs; sealants, coatings, maintenance cleaners, and transparencies for commercial, military, regional jet and general aviation aircraft, and transparent armor for specialty applications; and chemical management services. This segment also offers protective and marine coatings and finishes for the protection of metals and structures to metal fabricators and heavy duty maintenance contractors, as well as to the manufacturers of ships, bridges, and rail cars; architectural coatings used by painting and maintenance contractors, and consumers for decoration and maintenance of residential and commercial building structures; and purchased sundries to painting contractors and consumers. Its Industrial Coatings segment provides adhesives and sealants for the automotive industry, and metal pretreatments and related chemicals for industrial and automotive applications; precipitated silicas for tire, battery separator, and other markets; substrates used in radio frequency identification tags and labels, e-passports, drivers' licenses, and identification cards applications; organic light emitting diode materials for use in displays and lighting; optical lens materials and photochromic dyes for optical lenses and color-change products. The company's Glass segment produces flat glass and fiber glass for commercial and residential construction, and wind energy, energy infrastructure, transportation, and electronics industries. PPG Industries, Inc. sells its products through owned stores, home centers, paint dealers, concessionaires, other consumer retail outlets, independent distributors, and directly to customers. The company was founded in 1883 and is headquartered in Pittsburgh, Pennsylvania. |
Please note, this stock split on 06/15/2015 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $137.78.
Highlights
The presenter believes the Street is not properly accounting for the reduction in PPG’s share count following its deal with Georgia Gulf and the company’s buy back activity. He estimates the reduction in share count (to ~140 million) will likely add $0.20-$0.25 cents to PPG’s 2013 earnings per-share. Although this is a short term catalyst (analysts will have to adjust numbers), he also believes the company’s transformation into a coatings pure play is timely given the pricing dynamics in the industry (despite volumes being down 30%, every player in the industry is taking up prices). He likes the sector as a whole, including SHW, VAL and others. If current trends persist, he estimates PPG can earn upwards of $8 per-share in 2013 and possibly more than $10 per-share in 2015 based on a number of factors, including:
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