PPG IndustriesSTU:PPQ +2.91%84 Operating Margin % is 13.36% as of Mar. 2026, which is 5% above its 10-year median of 12.69. GuruFocus rates STU:PPQ with a GF Score™ of 84/100 and a GF Value™ of €121.40 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,584 Chemicals companies, PPG Industries ranks better than 80.18% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
PPG Industries Operating Margin % Related Terms
PPG Industries Operating Margin % Historical Data
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The historical data trend for PPG Industries's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:PPQ vs LYB, ALB, DD: Operating Margin % Comparison
For the Specialty Chemicals subindustry, PPG Industries's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PPG Industries Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, PPG Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PPG Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
PPG Industries's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PPG Industries (STU:PPQ) has a Operating Margin % of 13.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PPG Industries and its competitors. This is near median its historical median of 12.69. Over the past decade, PPG Industries' Operating Margin % has ranged from 8.33 to 14.43. According to the industry distribution chart, PPG Industries ranks #314 out of 1584 companies in the Chemicals industry, placing it in the top 19.8%.
Is PPG Industries' Operating Margin % too high?
PPG Industries' current Operating Margin % of 13.36% is near median its 10-year median of 12.69. Over the past 10 years, this metric has ranged from a low of 8.33 to a high of 14.43. The Chemicals industry median Operating Margin % is 6.03. PPG Industries' value of 13.36% is 121.7% above this industry median. Based on the distribution chart, PPG Industries ranks #314 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, PPG Industries has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PPG Industries' Operating Margin % compare to LYB and ALB?
According to the Chemicals industry distribution chart, PPG Industries ranks #314 out of 1584 companies for Operating Margin %. This places PPG Industries in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. PPG Industries' value of 13.36% is 121.7% above this benchmark. Historically, PPG Industries' own Operating Margin % has ranged from 8.33 to 14.43 over the past decade. While the company's 10-year median is 12.69 vs. the industry median of 6.03, PPG Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PPG Industries's current Operating Margin % of 13.36% is 121.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on PPG Industries and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PPG Industries's current Operating Margin % is 13.36%, which is near median its own 10-year median of 12.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PPG Industries stock overvalued right now?
Based on GuruFocus' analysis, PPG Industries (STU:PPQ) is currently considered Modestly Undervalued. The stock's GF Value™ is €121.40, compared to a current price of €106.20 — trading 12.5% below its estimated fair value. The current Operating Margin % is 13.36%, which is near median its 10-year median of 12.69 and 121.7% above the Chemicals industry median of 6.03. PPG Industries' overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For PPG Industries (STU:PPQ), the current Operating Margin % is 13.36% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PPG Industries (STU:PPQ) Overvalued in 2026?
Based on GuruFocus' analysis, PPG Industries stock appears to be undervalued.
The current stock price of €106.20 is trading 12.5% below its estimated GF Value™ of €121.40.
GuruFocus considers PPG Industries to be Modestly Undervalued.
Key valuation signals for STU:PPQ:
Operating Margin %: 13.36% (near median its 10-year median of 12.69)
GF Value™: €121.40 vs. price of €106.20 (12.5% below fair value)
Industry Position: 121.7% above the Chemicals median (#314 of 1584)
No single metric tells the full story. See the STU:PPQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PPG is the world's second-largest producer of paints and coatings. PPG's products are sold to a wide variety of end users, including industrial segments such as automotive, aerospace, and protective and marine, as well as paint contractors and do-it-yourself customers. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years.
84GF Score
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