PPGNEUTRAL

Return on Equity (ROE)

20.7%

Higher than 71% of Basic Materials sector peers

Updated 152h ago

Sector Performance

71th percentile

PPG

20.7%

Sector Median

12.5%

Sector Avg

12.6%

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Deep Analysis

With a current Return on Equity (ROE) of 20.7%, PPG generates $0.207 of net income for every dollar of shareholders’ equity, indicating efficient profit generation from its invested capital.

This figure stands above the Basic Materials sector median of 12.5%, placing PPG in the 71st percentile among its peers. The trend for this metric is not available — both the year-over-year and quarter-over-quarter changes are marked N/A, meaning no historical comparison can be made. The combination of a high ROE level with no trend data implies that while the company’s current profitability efficiency is above average, the absence of direction introduces uncertainty for assessing future performance. This lack of trend neither signals a clear growth opportunity nor a deteriorating risk, reinforcing the overall NEUTRAL verdict. The strong level alone does not contradict the neutral stance, as a static snapshot without trajectory offers limited conviction for a bullish or bearish call.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PPG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PPG's Return on Equity (ROE) compare to its sector?

PPG's Return on Equity (ROE) of 20.7% compares to a Basic Materials sector median of 12.5%, placing it in the 71th percentile.

Who are PPG's closest peers by Return on Equity (ROE)?

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), RIO (16.4%), AEM (18.0%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.