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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, PG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PG had positive earnings in the past year.
PG had a positive operating cash flow in the past year.
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
The Return On Assets of PG (11.09%) is better than 66.67% of its industry peers.
PG's Return On Equity of 27.07% 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 18.07%, PG is in line with its industry, outperforming 58.33% of the companies in the same industry.
PG had an Average Return On Invested Capital over the past 3 years of 16.90%. This is in line with the industry average of 15.23%.
The 3 year average ROIC (16.90%) for PG is below the current ROIC(18.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 27.07% | ||
| ROIC | 18.07% |
ROA(3y)12.05%
ROA(5y)11.7%
ROE(3y)30.21%
ROE(5y)29.67%
ROIC(3y)16.9%
ROIC(5y)16.08%
1.3 Margins
With an excellent Profit Margin value of 16.72%, PG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PG's Profit Margin has improved in the last couple of years.
PG has a Operating Margin of 24.22%. This is amongst the best in the industry. PG outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of PG has grown nicely.
With an excellent Gross Margin value of 51.68%, PG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
PG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.22% | ||
| PM (TTM) | 16.72% | ||
| GM | 51.68% |
OM growth 3Y0.15%
OM growth 5Y2.1%
PM growth 3Y-1.98%
PM growth 5Y26.46%
GM growth 3Y0.17%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, PG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.77 indicates that PG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PG (5.77) is better than 75.00% of its industry peers.
PG has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as PG would need 2.28 years to pay back of all of its debts.
PG has a Debt to FCF ratio of 2.28. This is amongst the best in the industry. PG outperforms 83.33% of its industry peers.
PG has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, 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 | 0.5 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 5.77 |
ROIC/WACC2.08
WACC8.67%
2.3 Liquidity
A Current Ratio of 0.75 indicates that PG may have some problems paying its short term obligations.
PG's Current ratio of 0.75 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 0.75. 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 worse Quick ratio (0.55) than 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 | 0.75 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
PG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.60%, which is quite good.
Measured over the past 5 years, PG shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
The Revenue has been growing slightly by 0.77% in the past year.
Measured over the past years, PG shows a small growth in Revenue. The Revenue has been growing by 4.42% on average per year.
EPS 1Y (TTM)8.6%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%5.46%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-0.61%
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 7.17% on average per year.
PG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y8.75%
EPS Next 2Y7.68%
EPS Next 3Y7.41%
EPS Next 5Y7.17%
Revenue Next Year1.7%
Revenue Next 2Y2.7%
Revenue Next 3Y3.07%
Revenue Next 5Y4.2%
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
Based on the Price/Earnings ratio of 25.82, the valuation of PG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PG indicates a slightly more expensive valuation: PG is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. PG is around the same levels.
With a Price/Forward Earnings ratio of 22.61, PG is valued on the expensive side.
PG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.82 | ||
| Fwd PE | 22.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PG indicates a slightly more expensive valuation: PG is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.66 | ||
| EV/EBITDA | 18.53 |
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)2.95
PEG (5Y)3.32
EPS Next 2Y7.68%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
PG's Dividend Yield is a higher than the industry average which is at 2.40.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of PG has a limited annual growth rate of 5.65%.
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)5.65%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
PG pays out 67.47% of its income as dividend. This is not a sustainable payout ratio.
PG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.47%
EPS Next 2Y7.68%
EPS Next 3Y7.41%
PROCTER & GAMBLE CO/THE
NYSE:PG (11/21/2024, 8:04:00 PM)
Premarket: 173.1 +0.35 (+0.2%)172.75
+1.86 (+1.09%)
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 Cap406.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 25.82 | ||
| Fwd PE | 22.61 | ||
| 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)2.95
PEG (5Y)3.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 27.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.22% | ||
| PM (TTM) | 16.72% | ||
| GM | 51.68% | ||
| 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.55 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)8.6%
EPS 3Y5.2%
EPS 5Y
EPS Q2Q%
EPS Next Y8.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.77%
Revenue growth 3Y3.35%
Revenue growth 5Y
Sales 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