PPGNEUTRAL

PPG Gross Margin Analysis

40.2%

Higher than 40% of Basic Materials sector peers

Updated 252h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods, so PPG keeps $0.402 of every sales dollar before other expenses.

Sector Performance

40th percentile

PPG

40.2%

Sector Median

42.8%

Sector Avg

-54506.6%

Prior Period

42.1%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods, so PPG keeps $0.402 of every sales dollar before other expenses.

That figure sits below the sector median of 44.1%, placing PPG in the 36th percentile among Basic Materials peers, meaning most competitors have higher margins. Year-over-year change is not available, but quarter-over-quarter margin fell 4.5%, from 42.1% to 40.2%. A level below the sector median combined with a recent quarterly decline points to margin pressure, which raises the risk that PPG’s profitability is weakening relative to its industry. This metric supports the overall NEUTRAL verdict: the margin shortfall and negative quarterly move add caution, but the percentile is not extreme enough to justify a bearish stance on its own.

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 40.2% compares to a Basic Materials sector median of 42.8%, placing it in the 40th percentile.

Who are PPG's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: BHP (42.8%), ALB (35.1%), PAAS (52.7%), APD (31.1%), AG (55.3%).

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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.