PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
141.825 USD
-1.49 (-1.04%)
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 scores excellent on profitability, 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
PG had positive earnings in the past year.
In the past year PG had a positive cash flow from operations.
Each year in the past 5 years PG has been profitable.
Each year in the past 5 years PG had a positive operating cash flow.
1.2 Ratios
PG has a better Return On Assets (12.91%) than 66.67% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 18.64%, PG is in the better half of 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 14.85%.
The last Return On Invested Capital (18.64%) for PG is above the 3 year average (17.42%), which is a sign of increasing profitability.
| 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
PG has a better Profit Margin (19.39%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of PG has remained more or less at the same level.
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's Gross Margin of 51.23% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PG is creating value.
Compared to 1 year ago, PG has less shares outstanding
Compared to 5 years ago, PG has less shares outstanding
Compared to 1 year ago, PG has a worse debt to assets ratio.
2.2 Solvency
PG has an Altman-Z score of 5.26. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
PG has a better Altman-Z score (5.26) than 75.00% of its industry peers.
PG has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as PG would need 2.41 years to pay back of all of its debts.
PG's Debt to FCF ratio of 2.41 is fine compared to the rest of the industry. PG outperforms 75.00% of its industry peers.
PG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, PG is in the better half of 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 | 5.26 |
ROIC/WACC2.22
WACC8.38%
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 has a Current ratio of 0.71. This is amonst the worse of the industry: PG underperforms 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.
PG has a Quick ratio of 0.51. This is amonst the worse of the industry: PG underperforms 83.33% of its industry peers.
PG does not score too well on the current and quick ratio evaluation. However, as it has 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
PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.99%.
PG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
Looking at the last year, PG shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
PG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
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
The Earnings Per Share is expected to grow by 5.21% on average over the next years.
The Revenue is expected to grow by 3.37% on average over the next years.
EPS Next Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.21%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 20.58 indicates a rather 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.
When comparing the Price/Earnings ratio of PG to the average of the S&P500 Index (26.51), we can say PG is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.68 indicates a rather expensive valuation of PG.
PG's Price/Forward Earnings ratio is in line with the industry average.
PG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.58 | ||
| Fwd PE | 18.68 |
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 66.67% of the companies in the same industry.
PG's Price/Free Cash Flow ratio is rather expensive when compared to the industry. PG is more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.8
PEG (5Y)3.47
EPS Next 2Y5.43%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, PG has a reasonable but not impressive dividend return.
PG's Dividend Yield is comparable with the industry average which is at 2.80.
Compared to an average S&P500 Dividend Yield of 2.00, PG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of PG grows each year by 6.09%, which is quite nice.
PG has paid a dividend for at least 10 years, which is a reliable track record.
PG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
PG pays out 60.57% of its income as dividend. 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 2Y5.43%
EPS Next 3Y5.54%
NYSE:PG (1/2/2026, 9:43:09 AM)
141.825
-1.49 (-1.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.14%
Inst Owner Change-3.71%
Ins Owners0.04%
Ins Owner Change5.46%
Market Cap331.41B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts76.57
Price Target172.1 (21.35%)
Short Float %0.76%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)-0.05%
PT rev (3m)-1.74%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.58 | ||
| Fwd PE | 18.68 | ||
| P/S | 3.9 | ||
| P/FCF | 22.18 | ||
| P/OCF | 17.51 | ||
| P/B | 6.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)6.89
EY4.86%
EPS(NY)7.59
Fwd EY5.35%
FCF(TTM)6.4
FCFY4.51%
OCF(TTM)8.1
OCFY5.71%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)3.8
PEG (5Y)3.47
Graham Number59.45
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 | 5.26 |
F-Score7
WACC8.38%
ROIC/WACC2.22
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 Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.21%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.32%
EBIT Next 3Y9.38%
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.
What is the valuation status of PROCTER & GAMBLE CO/THE (PG) stock?
ChartMill assigns a valuation rating of 2 / 10 to PROCTER & GAMBLE CO/THE (PG). This can be considered as Overvalued.
Can you provide the profitability details for PROCTER & GAMBLE CO/THE?
PROCTER & GAMBLE CO/THE (PG) has a profitability rating of 8 / 10.
How financially healthy is PROCTER & GAMBLE CO/THE?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10.
Is the dividend of PROCTER & GAMBLE CO/THE sustainable?
The dividend rating of PROCTER & GAMBLE CO/THE (PG) is 5 / 10 and the dividend payout ratio is 60.57%.