Since February when I wrote a last post (read more) shares are performing really well and again I was wrong – or too conservative. Quarter by quarter company is increasing adjusted EPS in a double-digit pace, which is an outstanding result for old-economy company:

Quarterly adjusted earnings per diluted share growth

  • Second quarter adjusted earnings per diluted share was $1.85; up 11 percent versus the prior year despite a $0.04 unfavorable foreign currency impact
  • Fourteenth consecutive quarter of double-digit percentage adjusted earnings per diluted share growth
  • On pace to fully realize previously announced restructuring benefits

Moreover although company is huge it manages to grow faster than market in many areas.


Company is growing not only organically buy also through acquisitions – recently MetoKote Corporation was bought. Around $2.5b should be spent on acquisitions and buybacks (2015-2016 combined). Personally I would prefer higher buyback as dividend yield is quite low.

Current valuation is still high and not attractive for me:


P/E = 17

Dividend yield = 1.5%


Summing up, I do not see the story of buying shares now. Valuation is rather high, dividend yield is a little bit too low for me and shares are not far away from all time high level.


Disclaimer PPG – no position