PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
149.93 USD
+3.87 (+2.65%)
150.01 USD
+0.08 (+0.05%)
Overall PG gets a fundamental rating of 6 out of 10. We evaluated PG against 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.
- In the past 5 years PG always reported a positive cash flow from operatings.
1.2 Ratios
- PG has a better Return On Assets (12.91%) 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 14.86%.
- 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 has a Operating Margin of 24.66%. 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.
- PG has a better Gross Margin (51.23%) than 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PG is creating value.
- The number of shares outstanding for PG has been reduced compared to 1 year ago.
- Compared to 5 years ago, PG has less shares outstanding
- The debt/assets ratio for PG is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.31 indicates that PG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PG (5.31) is better than 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 | 5.31 |
ROIC/WACC2.2
WACC8.47%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that PG may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.71, PG is doing worse than 91.67% of the companies in the same industry.
- 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 83.33% of its industry peers.
- 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
- PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.99%.
- 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.
- 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 5.04% on average over the next years.
- The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y5.12%
EPS Next 2Y5.17%
EPS Next 3Y5.34%
EPS Next 5Y5.04%
Revenue Next Year3.2%
Revenue Next 2Y3.02%
Revenue Next 3Y3.1%
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.
- 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 21.76 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, PG is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.85, the valuation of PG can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of PG to the average of the S&P500 Index (24.32), we can say PG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are cheaper than PG, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PG is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.44 | ||
| EV/EBITDA | 15.37 |
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)4.25
PEG (5Y)3.67
EPS Next 2Y5.17%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
- PG has a Yearly Dividend Yield of 2.92%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.67, PG has a dividend in line with its industry peers.
- PG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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
- 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 2Y5.17%
EPS Next 3Y5.34%
149.93
+3.87 (+2.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)10-24 2025-10-24/bmo
Earnings (Next)01-22 2026-01-22/bmo
Inst Owners70.12%
Inst Owner Change0.11%
Ins Owners0.04%
Ins Owner Change5.46%
Market Cap350.35B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts77.71
Price Target170.07 (13.43%)
Short Float %0.8%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-23 2026-01-23 (1.0568)
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)-1.23%
PT rev (3m)-2.76%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 19.85 | ||
| P/S | 4.12 | ||
| P/FCF | 23.44 | ||
| P/OCF | 18.51 | ||
| P/B | 6.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.37 |
EPS(TTM)6.89
EY4.6%
EPS(NY)7.56
Fwd EY5.04%
FCF(TTM)6.4
FCFY4.27%
OCF(TTM)8.1
OCFY5.4%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)4.25
PEG (5Y)3.67
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 | 5.31 |
F-Score7
WACC8.47%
ROIC/WACC2.2
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 Y5.12%
EPS Next 2Y5.17%
EPS Next 3Y5.34%
EPS Next 5Y5.04%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.2%
Revenue Next 2Y3.02%
Revenue Next 3Y3.1%
Revenue Next 5Y3.35%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.32%
EBIT Next 3Y9.38%
EBIT Next 5Y6.66%
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 6 / 10 and the dividend payout ratio is 60.57%.