PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
143.31 USD
-0.74 (-0.51%)
143.31 USD
0 (0%)
PG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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.
PG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PG (12.91%) is better than 66.67% of its industry peers.
PG has a better Return On Equity (30.92%) than 66.67% of its industry peers.
The Return On Invested Capital of PG (18.64%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PG 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 Profit Margin of 19.39%. This is amongst the best in the industry. PG outperforms 100.00% of its industry peers.
PG's Profit Margin has been stable in the last couple of years.
PG's Operating Margin of 24.66% 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 51.23% is amongst the best of the industry. PG outperforms 83.33% of its industry peers.
PG's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for PG has been reduced compared to 1 year ago.
The number of shares outstanding for PG has been reduced compared to 5 years ago.
The debt/assets ratio for PG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.26 indicates that PG is not in any danger for bankruptcy at the moment.
PG has a Altman-Z score of 5.26. This is in the better half 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.
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.
The Debt to Equity ratio of PG (0.46) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.26 |
ROIC/WACC2.22
WACC8.38%
2.3 Liquidity
A Current Ratio of 0.71 indicates that PG may have some problems paying 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.
PG's Quick ratio of 0.51 is on the low side compared to the rest of the industry. PG is outperformed by 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%.
The Earnings Per Share has been growing slightly by 5.93% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.21% on average over the next years.
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 Y5.41%
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.
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 20.80 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.
PG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 18.88, the valuation of PG can be described as rather expensive.
PG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. PG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 18.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than 66.67% of the companies in the same industry.
83.33% of the companies in the same industry are cheaper than PG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| 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.
The excellent profitability rating of PG may justify a higher PE ratio.
PEG (NY)3.84
PEG (5Y)3.51
EPS Next 2Y5.43%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.80, 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 2.00.
| 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 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
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%
143.31
-0.74 (-0.51%)
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 Cap334.88B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts76.57
Price Target172.1 (20.09%)
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 | 20.8 | ||
| Fwd PE | 18.88 | ||
| P/S | 3.94 | ||
| P/FCF | 22.41 | ||
| P/OCF | 17.69 | ||
| P/B | 6.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)6.89
EY4.81%
EPS(NY)7.59
Fwd EY5.3%
FCF(TTM)6.4
FCFY4.46%
OCF(TTM)8.1
OCFY5.65%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)3.84
PEG (5Y)3.51
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%.