Ppg Industries Stock Beneish M Score

PPG Stock  USD 144.54  2.72  1.92%   
This module uses fundamental data of PPG Industries to approximate the value of its Beneish M Score. PPG Industries M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out PPG Industries Piotroski F Score and PPG Industries Altman Z Score analysis.
For more detail on how to invest in PPG Stock please use our How to Invest in PPG Industries guide.
  
At this time, PPG Industries' Short Term Debt is most likely to increase significantly in the upcoming years. The PPG Industries' current Cash Flow To Debt Ratio is estimated to increase to 0.52, while Long Term Debt Total is projected to decrease to roughly 4.7 B. At this time, PPG Industries' Operating Cycle is most likely to increase in the upcoming years. The PPG Industries' current Price Earnings To Growth Ratio is estimated to increase to 1.19, while Price To Sales Ratio is projected to decrease to 1.05.
At this time, it appears that PPG Industries is an unlikely manipulator. The earnings manipulation may begin if PPG Industries' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by PPG Industries executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of PPG Industries' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.19
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.04

Focus
Asset Quality

0.72

Focus
Expense Coverage

0.98

Focus
Gross Margin Strengs

0.75

Focus
Accruals Factor

0.98

Focus
Depreciation Resistance

0.99

Focus
Net Sales Growth

0.64

Focus
Financial Leverage Condition

1.57

Focus

PPG Industries Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if PPG Industries' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables2.2 B3.3 B
Way Down
Slightly volatile
Total Revenue11.6 B18.2 B
Way Down
Slightly volatile
Total Assets11.7 B21.6 B
Way Down
Slightly volatile
Total Current Assets4.8 B7.4 B
Way Down
Pretty Stable
Non Current Assets Total7.5 B14.2 B
Way Down
Slightly volatile
Property Plant Equipment3.1 B3.8 B
Significantly Down
Slightly volatile
Depreciation And Amortization457.7 M558 M
Significantly Down
Slightly volatile
Selling General Administrative2.8 B4.4 B
Way Down
Slightly volatile
Total Current Liabilities3.2 B5.1 B
Way Down
Slightly volatile
Non Current Liabilities Total4.3 B8.6 B
Way Down
Slightly volatile
Short Term Debt523.9 M500 M
Sufficiently Up
Slightly volatile
Long Term Debt3.7 B5.7 B
Way Down
Slightly volatile
Operating Income1.4 B1.7 B
Significantly Down
Slightly volatile
Total Cash From Operating Activities1.4 B2.4 B
Way Down
Slightly volatile
Short Term Investments71.2 M75 M
Notably Down
Slightly volatile
Long Term Investments269.9 M259 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.310.4111
Way Down
Slightly volatile

PPG Industries Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between PPG Industries' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards PPG Industries in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find PPG Industries' degree of accounting gimmicks and manipulations.

About PPG Industries Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

10.01 Billion

At this time, PPG Industries' Other Operating Expenses is most likely to increase significantly in the upcoming years.

PPG Industries Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as PPG Industries. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables2.8B2.7B3.2B3.3B3.3B2.2B
Total Revenue15.1B13.8B16.8B17.7B18.2B11.6B
Total Assets14.3B19.6B21.4B20.7B21.6B11.7B
Total Current Assets6.2B6.8B6.7B7.2B7.4B4.8B
Net Debt4.0B(1.6B)(813M)6.5B5.4B5.6B
Short Term Debt683M758M201M496M500M523.9M
Long Term Debt4.5B5.2B6.6B6.5B5.7B3.7B
Operating Income1.7B1.8B1.8B1.7B1.7B1.4B
Investments20M17M(2.4B)(461M)(556M)(528.2M)

PPG Industries ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, PPG Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to PPG Industries' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About PPG Industries Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze PPG Industries's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of PPG Industries using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of PPG Industries based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The company was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania. PPG Industries operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 49300 people.

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When determining whether PPG Industries is a strong investment it is important to analyze PPG Industries' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PPG Industries' future performance. For an informed investment choice regarding PPG Stock, refer to the following important reports:
Check out PPG Industries Piotroski F Score and PPG Industries Altman Z Score analysis.
For more detail on how to invest in PPG Stock please use our How to Invest in PPG Industries guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running PPG Industries' price analysis, check to measure PPG Industries' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PPG Industries is operating at the current time. Most of PPG Industries' value examination focuses on studying past and present price action to predict the probability of PPG Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PPG Industries' price. Additionally, you may evaluate how the addition of PPG Industries to your portfolios can decrease your overall portfolio volatility.
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Is PPG Industries' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PPG Industries. If investors know PPG will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PPG Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.62)
Dividend Share
2.54
Earnings Share
5.35
Revenue Per Share
77.314
Quarterly Revenue Growth
0.039
The market value of PPG Industries is measured differently than its book value, which is the value of PPG that is recorded on the company's balance sheet. Investors also form their own opinion of PPG Industries' value that differs from its market value or its book value, called intrinsic value, which is PPG Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PPG Industries' market value can be influenced by many factors that don't directly affect PPG Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PPG Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if PPG Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PPG Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.