PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - NYSE:PG - US7427181091 - Common Stock
150.23 USD
-1.14 (-0.75%)
We assign a fundamental rating of 5 out of 10 to PG. PG was compared to 12 industry peers in the Household Products industry. While PG belongs to the best of the industry regarding profitability, 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.
PG had a positive operating cash flow in the past year.
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
PG has a Return On Assets (12.97%) which is comparable to the rest of the industry.
PG has a Return On Equity (30.89%) which is comparable to the rest of the industry.
PG has a Return On Invested Capital of 18.49%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PG is in line with the industry average of 15.69%.
The last Return On Invested Capital (18.49%) for PG is above the 3 year average (17.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.97% | ||
| ROE | 30.89% | ||
| ROIC | 18.49% |
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's Profit Margin of 19.48% is amongst the best of the industry. PG outperforms 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.
PG has a Operating Margin of 24.47%. This is amongst the best in the industry. PG outperforms 100.00% of its industry peers.
PG's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 51.14%, 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 | 24.47% | ||
| PM (TTM) | 19.48% | ||
| GM | 51.14% |
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.
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.
The debt/assets ratio for PG is higher compared to a year ago.
2.2 Solvency
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 has a better Debt to FCF ratio (2.41) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that PG is not too dependend on debt financing.
The Debt to Equity ratio of PG (0.45) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | N/A |
ROIC/WACC2.24
WACC8.25%
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.
A Quick Ratio of 0.51 indicates that PG may have some problems paying its short term obligations.
PG has a worse Quick ratio (0.51) than 91.67% of its industry peers.
| 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.
PG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.23%.
The Revenue has been growing slightly by 3.50% on average over the past years.
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
PG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.94% yearly.
PG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y5.15%
EPS Next 2Y5.42%
EPS Next 3Y5.49%
EPS Next 5Y4.94%
Revenue Next Year3.23%
Revenue Next 2Y3.13%
Revenue Next 3Y3.22%
Revenue Next 5Y3.35%
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 21.80 indicates a rather expensive valuation of PG.
75.00% of the companies in the same industry are cheaper than PG, based on the Price/Earnings ratio.
PG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
The Price/Forward Earnings ratio is 19.79, which indicates a rather expensive current valuation of PG.
Based on the Price/Forward Earnings ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
PG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 19.79 |
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.
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 | 23.53 | ||
| EV/EBITDA | 16.02 |
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 decent profitability rating of PG may justify a higher PE ratio.
PEG (NY)4.23
PEG (5Y)3.68
EPS Next 2Y5.42%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.79%.
PG's Dividend Yield is comparable with the industry average which is at 3.06.
PG's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of PG is nicely growing with an annual growth rate of 6.09%!
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)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
PG pays out 60.30% 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.
DP60.3%
EPS Next 2Y5.42%
EPS Next 3Y5.49%
NYSE:PG (10/29/2025, 10:48:09 AM)
150.23
-1.14 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.15%
Inst Owner Change-4.64%
Ins Owners0.04%
Ins Owner Change5.87%
Market Cap351.61B
Revenue(TTM)84.93B
Net Income(TTM)16.54B
Analysts77.14
Price Target171.75 (14.32%)
Short Float %0.72%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.3%
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)-0.15%
PT rev (3m)-1.14%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 19.79 | ||
| P/S | 4.14 | ||
| P/FCF | 23.53 | ||
| P/OCF | 18.58 | ||
| P/B | 6.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.02 |
EPS(TTM)6.89
EY4.59%
EPS(NY)7.59
Fwd EY5.05%
FCF(TTM)6.39
FCFY4.25%
OCF(TTM)8.09
OCFY5.38%
SpS36.29
BVpS22.88
TBVpS-4.23
PEG (NY)4.23
PEG (5Y)3.68
Graham Number59.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.97% | ||
| ROE | 30.89% | ||
| ROCE | 23.19% | ||
| ROIC | 18.49% | ||
| ROICexc | 21.13% | ||
| ROICexgc | 110.68% | ||
| OM | 24.47% | ||
| PM (TTM) | 19.48% | ||
| GM | 51.14% | ||
| 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 | 0.45 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 138.19% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.98% | ||
| Profit Quality | 90.33% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | N/A |
F-Score7
WACC8.25%
ROIC/WACC2.24
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 Y5.15%
EPS Next 2Y5.42%
EPS Next 3Y5.49%
EPS Next 5Y4.94%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.23%
Revenue Next 2Y3.13%
Revenue Next 3Y3.22%
Revenue Next 5Y3.35%
EBIT growth 1Y2.26%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year19.07%
EBIT Next 3Y9.11%
EBIT Next 5Y6.71%
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 5 / 10 to PG.
Can you provide the valuation status for PROCTER & GAMBLE CO/THE?
ChartMill assigns a valuation rating of 1 / 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 7 / 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 21.8 and the Price/Book (PB) ratio is 6.57.
Can you provide the financial health for PG stock?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 4 / 10.