PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - NYSE:PG - US7427181091 - Common Stock
158.94 USD
-1.39 (-0.87%)
PG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. PG has an excellent profitability rating, 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.
In the past 5 years PG has always been profitable.
PG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PG has a Return On Assets (12.52%) which is in line with its industry peers.
With a Return On Equity value of 29.99%, PG perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Return On Invested Capital of PG (18.57%) is better than 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 15.56%.
The last Return On Invested Capital (18.57%) for PG is above the 3 year average (17.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.52% | ||
| ROE | 29.99% | ||
| ROIC | 18.57% |
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
Looking at the Profit Margin, with a value of 18.60%, PG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PG has remained more or less at the same level.
PG has a better Operating Margin (24.65%) than 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 51.34%, 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 | 24.65% | ||
| PM (TTM) | 18.6% | ||
| GM | 51.34% |
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.
PG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PG has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PG is 2.46, which is a good value as it means it would take PG, 2.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.46, PG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that PG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, 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 | 0.48 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC2.24
WACC8.3%
2.3 Liquidity
PG has a Current Ratio of 0.70. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, PG is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that PG may have some problems paying its short term obligations.
The Quick ratio of PG (0.49) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.64%.
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.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.29%.
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)3.64%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%5.71%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.74%
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.
The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y5.41%
EPS Next 2Y5.89%
EPS Next 3Y5.8%
EPS Next 5Y4.94%
Revenue Next Year3.32%
Revenue Next 2Y3.19%
Revenue Next 3Y3.34%
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
Based on the Price/Earnings ratio of 23.27, the valuation of PG can be described as rather 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 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, PG is valued at the same level.
A Price/Forward Earnings ratio of 22.08 indicates a rather expensive valuation of PG.
66.67% of the companies in the same industry are cheaper than PG, based on the Price/Forward Earnings ratio.
PG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 22.08 |
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 expensively inside the industry as 83.33% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.49 | ||
| EV/EBITDA | 16.94 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.3
PEG (5Y)3.92
EPS Next 2Y5.89%
EPS Next 3Y5.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, PG has a reasonable but not impressive dividend return.
PG's Dividend Yield is comparable with the industry average which is at 2.86.
Compared to an average S&P500 Dividend Yield of 2.38, PG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 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
62.96% of the earnings are spent on dividend by PG. This is not a sustainable payout ratio.
PG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.96%
EPS Next 2Y5.89%
EPS Next 3Y5.8%
NYSE:PG (9/18/2025, 9:40:08 AM)
158.94
-1.39 (-0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.1%
Inst Owner Change2.35%
Ins Owners0.04%
Ins Owner Change4.77%
Market Cap372.00B
Analysts77.14
Price Target175.15 (10.2%)
Short Float %0.74%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP62.96%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.39%
Min EPS beat(2)-1.99%
Max EPS beat(2)1.21%
EPS beat(4)1
Avg EPS beat(4)-0.93%
Min EPS beat(4)-1.99%
Max EPS beat(4)1.21%
EPS beat(8)4
Avg EPS beat(8)1.03%
EPS beat(12)6
Avg EPS beat(12)0.45%
EPS beat(16)6
Avg EPS beat(16)-0.19%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.08%
Revenue beat(12)1
Avg Revenue beat(12)-2.34%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)-1.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 22.08 | ||
| P/S | 4.41 | ||
| P/FCF | 26.49 | ||
| P/OCF | 20.88 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.94 |
EPS(TTM)6.83
EY4.3%
EPS(NY)7.2
Fwd EY4.53%
FCF(TTM)6
FCFY3.78%
OCF(TTM)7.61
OCFY4.79%
SpS36.01
BVpS22.34
TBVpS-4.82
PEG (NY)4.3
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.52% | ||
| ROE | 29.99% | ||
| ROCE | 23.3% | ||
| ROIC | 18.57% | ||
| ROICexc | 20.8% | ||
| ROICexgc | 103.16% | ||
| OM | 24.65% | ||
| PM (TTM) | 18.6% | ||
| GM | 51.34% | ||
| FCFM | 16.66% |
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%
ROICexcg growth 3Y9.9%
ROICexcg 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-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.46 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 132.53% | ||
| Cap/Sales | 4.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 89.56% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | N/A |
F-Score6
WACC8.3%
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)3.64%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%5.71%
EPS Next Y5.41%
EPS Next 2Y5.89%
EPS Next 3Y5.8%
EPS Next 5Y4.94%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.74%
Revenue Next Year3.32%
Revenue Next 2Y3.19%
Revenue Next 3Y3.34%
Revenue Next 5Y3.35%
EBIT growth 1Y2.85%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.92%
EBIT Next 3Y9.25%
EBIT Next 5Y6.71%
FCF growth 1Y-15%
FCF growth 3Y1.16%
FCF growth 5Y-0.4%
OCF growth 1Y-10.22%
OCF growth 3Y2.13%
OCF growth 5Y0.47%