PROCTER & GAMBLE CO/THE (PG)
US7427181091 - Common Stock
Taking everything into account, PG scores 6 out of 10 in our fundamental rating. PG was compared to 12 industry peers in the Household Products industry. PG gets an excellent profitability rating and is at the same time showing great financial health properties. PG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PG had positive earnings in the past year.
In the past year PG had a positive cash flow from operations.
PG had positive earnings in each of the past 5 years.
In the past 5 years PG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 12.41%, PG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a Return On Equity value of 29.66%, PG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of PG (18.78%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PG is above the industry average of 14.24%.
The last Return On Invested Capital (18.78%) for PG is above the 3 year average (16.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 29.66% | ||
| ROIC | 18.78% |
ROA(3y)12%
ROA(5y)9.95%
ROE(3y)30.67%
ROE(5y)25.43%
ROIC(3y)16.38%
ROIC(5y)15.22%
1.3 Margins
With an excellent Profit Margin value of 17.66%, PG belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
PG's Profit Margin has improved in the last couple of years.
PG's Operating Margin of 23.99% is amongst the best of the industry. PG outperforms 100.00% of its industry peers.
PG's Operating Margin has been stable in the last couple of years.
PG's Gross Margin of 51.09% is amongst the best of the industry. PG outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of PG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.99% | ||
| PM (TTM) | 17.66% | ||
| GM | 51.09% |
OM growth 3Y-1.02%
OM growth 5Y0.68%
PM growth 3Y-0.87%
PM growth 5Y4.31%
GM growth 3Y-2.08%
GM growth 5Y-0.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PG is creating value.
PG has less shares outstanding than it did 1 year ago.
PG has less shares outstanding than it did 5 years ago.
PG has a worse debt/assets ratio than last year.
2.2 Solvency
PG has an Altman-Z score of 6.02. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
PG has a better Altman-Z score (6.02) than 75.00% of its industry peers.
PG has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, PG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that PG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, PG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 6.02 |
ROIC/WACC2.22
WACC8.46%
2.3 Liquidity
PG has a Current Ratio of 0.69. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.69, PG is doing worse than 91.67% of the companies in the same industry.
PG has a Quick Ratio of 0.69. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.48, PG is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
The current and quick ratio evaluation for PG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.29% over the past year.
Measured over the past 5 years, PG shows a small growth in Earnings Per Share. The EPS has been growing by 6.93% on average per year.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
The Revenue has been growing slightly by 4.18% on average over the past years.
EPS 1Y (TTM)14.29%
EPS 3Y4.84%
EPS 5Y6.93%
EPS growth Q2Q10.95%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.95%
Revenue growth 5Y4.18%
Revenue growth Q2Q0.63%
3.2 Future
Based on estimates for the next years, PG will show a small growth in Earnings Per Share. The EPS will grow by 7.96% on average per year.
Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y12.63%
EPS Next 2Y10.22%
EPS Next 3Y9.32%
EPS Next 5Y7.96%
Revenue Next Year4.06%
Revenue Next 2Y3.96%
Revenue Next 3Y4.05%
Revenue Next 5Y3.98%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.55 indicates a quite expensive valuation of PG.
PG's Price/Earnings ratio is a bit more expensive when compared to the industry. PG is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. PG is around the same levels.
PG is valuated rather expensively with a Price/Forward Earnings ratio of 23.39.
PG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.15. PG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 23.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
PG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.48 | ||
| EV/EBITDA | 18.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PG does not grow enough to justify the current Price/Earnings ratio.
PG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)3.69
EPS Next 2Y10.22%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, PG has a reasonable but not impressive dividend return.
PG's Dividend Yield is a higher than the industry average which is at 2.45.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of PG has a limited annual growth rate of 5.51%.
PG has paid a dividend for at least 10 years, which is a reliable track record.
PG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.51%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
61.54% of the earnings are spent on dividend by PG. This is not a sustainable payout ratio.
PG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.54%
EPS Next 2Y10.22%
EPS Next 3Y9.32%
PROCTER & GAMBLE CO/THE
NYSE:PG (5/17/2024, 7:19:36 PM)
After market: 167.45 -0.19 (-0.11%)167.64
-0.22 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap395.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 23.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.02
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 29.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.99% | ||
| PM (TTM) | 17.66% | ||
| GM | 51.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.29%
EPS 3Y4.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y