PPGNEUTRAL

PPG Gross Margin Analysis

42.1%

Higher than 36% of Basic Materials sector peers

Updated 96h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue that remains after deducting the direct costs of producing goods; PPG’s current 42.1% means it keeps $0.421 of every sales dollar to cover overhead and profit.

Sector Performance

36th percentile

PPG

42.1%

Sector Median

44.1%

Sector Avg

-39957.7%

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Deep Analysis

This sits below the sector median of 44.1%, placing the company in the 36th percentile among Basic Materials peers, showing its profitability from production is weaker than most competitors. The trend data is not available — the year-over-year change and quarter-over-quarter change are both listed as “N/A,” and only a single historical value of 42.1% is provided, so no direction can be assessed. Without a trend, the investment implication rests solely on the level: below-median gross margin signals a cost disadvantage or pricing pressure, which elevates risk if the gap persists. This metric does not strongly challenge the overall NEUTRAL verdict, as the below-median margin suggests a weakness that aligns with a neutral stance rather than a bullish one, but the absence of trend prevents a definitive contradiction.

Frequently Asked Questions

What does the Gross Margin tell investors about PPG?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PPG's Gross Margin compare to its sector?

PPG's Gross Margin of 42.1% compares to a Basic Materials sector median of 44.1%, placing it in the 36th percentile.

Who are PPG's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: MP (44.1%), BHP (42.8%), CDE (49.8%), PAAS (52.7%), ALB (35.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.