PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - NYSE:PG - US7427181091 - Common Stock
148.64 USD
+0.1 (+0.07%)
Overall PG gets a fundamental rating of 6 out of 10. We evaluated PG against 12 industry peers in the Household Products industry. PG has an excellent profitability rating, but there are some minor concerns on its financial health. PG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PG was profitable.
In the past year PG had a positive cash flow from operations.
In the past 5 years PG has always been profitable.
Each year in the past 5 years PG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.91%, PG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
PG's Return On Equity of 30.92% is fine compared to the rest of the industry. PG outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 18.64%, PG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
PG had an Average Return On Invested Capital over the past 3 years of 17.42%. This is above the industry average of 14.90%.
The 3 year average ROIC (17.42%) for PG is below the current ROIC(18.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 30.92% | ||
| ROIC | 18.64% |
ROA(3y)12.11%
ROA(5y)12.09%
ROE(3y)29.91%
ROE(5y)30.21%
ROIC(3y)17.42%
ROIC(5y)16.87%
1.3 Margins
Looking at the Profit Margin, with a value of 19.39%, PG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PG's Profit Margin has been stable in the last couple of years.
The Operating Margin of PG (24.66%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PG has remained more or less at the same level.
PG has a Gross Margin of 51.23%. This is amongst the best in 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 | 24.66% | ||
| PM (TTM) | 19.39% | ||
| GM | 51.23% |
OM growth 3Y3.04%
OM growth 5Y1.21%
PM growth 3Y1.05%
PM growth 5Y0.68%
GM growth 3Y2.51%
GM growth 5Y0.06%
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.
The number of shares outstanding for PG has been reduced compared to 5 years ago.
PG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.36 indicates that PG is not in any danger for bankruptcy at the moment.
PG's Altman-Z score of 5.36 is fine compared to the rest of the industry. PG outperforms 75.00% of its industry peers.
The Debt to FCF ratio of PG is 2.41, which is a good value as it means it would take PG, 2.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.41, PG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
PG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.46, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.36 |
ROIC/WACC2.23
WACC8.35%
2.3 Liquidity
PG has a Current Ratio of 0.71. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
PG's Current ratio of 0.71 is on the low side compared to the rest of the industry. PG is outperformed by 91.67% of its industry peers.
PG has a Quick Ratio of 0.71. 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 0.51, PG is not doing good in the industry: 83.33% 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 | 0.71 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.99% 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 5.93% on average per year.
The Revenue has been growing slightly by 1.23% in the past year.
Measured over the past years, PG shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
EPS 1Y (TTM)2.99%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%3.11%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
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 5.21% on average per year.
Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y5.59%
EPS Next 2Y5.71%
EPS Next 3Y5.55%
EPS Next 5Y5.21%
Revenue Next Year3.35%
Revenue Next 2Y3.18%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.57, which indicates a rather expensive current valuation of PG.
Based on the Price/Earnings ratio, PG is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of PG to the average of the S&P500 Index (26.35), we can say PG is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.47, PG is valued on the expensive side.
PG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PG to the average of the S&P500 Index (33.72), we can say PG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
PG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PG is more expensive than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PG is valued more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.28 | ||
| EV/EBITDA | 15.63 |
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)3.86
PEG (5Y)3.64
EPS Next 2Y5.71%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.20, PG has a dividend in line with its industry peers.
PG's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of PG is nicely growing with an annual growth rate of 6.09%!
PG has been paying a dividend for at least 10 years, so it has a reliable track record.
PG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
60.57% of the earnings are spent on dividend by PG. This is not a sustainable payout ratio.
The dividend of PG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.57%
EPS Next 2Y5.71%
EPS Next 3Y5.55%
NYSE:PG (11/12/2025, 9:43:02 AM)
148.64
+0.1 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.15%
Inst Owner Change-5.14%
Ins Owners0.04%
Ins Owner Change5.54%
Market Cap347.89B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts76.57
Price Target171.75 (15.55%)
Short Float %0.72%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)1.21%
Max EPS beat(2)1.94%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-1.99%
Max EPS beat(4)1.94%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)0.71%
EPS beat(16)7
Avg EPS beat(16)0.04%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.13%
Revenue beat(12)1
Avg Revenue beat(12)-2.39%
Revenue beat(16)3
Avg Revenue beat(16)-1.99%
PT rev (1m)-1.8%
PT rev (3m)-1.94%
EPS NQ rev (1m)-2.89%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 19.47 | ||
| P/S | 4.1 | ||
| P/FCF | 23.28 | ||
| P/OCF | 18.38 | ||
| P/B | 6.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.63 |
EPS(TTM)6.89
EY4.64%
EPS(NY)7.63
Fwd EY5.13%
FCF(TTM)6.39
FCFY4.3%
OCF(TTM)8.09
OCFY5.44%
SpS36.29
BVpS22.76
TBVpS-4.35
PEG (NY)3.86
PEG (5Y)3.64
Graham Number59.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 30.92% | ||
| ROCE | 23.37% | ||
| ROIC | 18.64% | ||
| ROICexc | 21.29% | ||
| ROICexgc | 111.54% | ||
| OM | 24.66% | ||
| PM (TTM) | 19.39% | ||
| GM | 51.23% | ||
| FCFM | 17.6% |
ROA(3y)12.11%
ROA(5y)12.09%
ROE(3y)29.91%
ROE(5y)30.21%
ROIC(3y)17.42%
ROIC(5y)16.87%
ROICexc(3y)19.36%
ROICexc(5y)18.73%
ROICexgc(3y)87.28%
ROICexgc(5y)85.5%
ROCE(3y)22.62%
ROCE(5y)22.11%
ROICexgc growth 3Y9.9%
ROICexgc growth 5Y5.36%
ROICexc growth 3Y5.77%
ROICexc growth 5Y4.91%
OM growth 3Y3.04%
OM growth 5Y1.21%
PM growth 3Y1.05%
PM growth 5Y0.68%
GM growth 3Y2.51%
GM growth 5Y0.06%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 138.19% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.44% | ||
| Profit Quality | 90.74% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 5.36 |
F-Score7
WACC8.35%
ROIC/WACC2.23
Cap/Depr(3y)120.02%
Cap/Depr(5y)114.88%
Cap/Sales(3y)4.05%
Cap/Sales(5y)3.95%
Profit Quality(3y)99.56%
Profit Quality(5y)100.71%
High Growth Momentum
Growth
EPS 1Y (TTM)2.99%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%3.11%
EPS Next Y5.59%
EPS Next 2Y5.71%
EPS Next 3Y5.55%
EPS Next 5Y5.21%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.35%
Revenue Next 2Y3.18%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year19.07%
EBIT Next 3Y9.11%
EBIT Next 5Y6.81%
FCF growth 1Y2.48%
FCF growth 3Y1.16%
FCF growth 5Y-0.4%
OCF growth 1Y7.04%
OCF growth 3Y2.13%
OCF growth 5Y0.47%
PROCTER & GAMBLE CO/THE / PG FAQ
Can you provide the ChartMill fundamental rating for PROCTER & GAMBLE CO/THE?
ChartMill assigns a fundamental rating of 6 / 10 to PG.
Can you provide the valuation status for PROCTER & GAMBLE CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to PROCTER & GAMBLE CO/THE (PG). This can be considered as Overvalued.
What is the profitability of PG stock?
PROCTER & GAMBLE CO/THE (PG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PROCTER & GAMBLE CO/THE (PG) stock?
The Price/Earnings (PE) ratio for PROCTER & GAMBLE CO/THE (PG) is 21.57 and the Price/Book (PB) ratio is 6.53.
Can you provide the financial health for PG stock?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10.