PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
144.055 USD
+0.59 (+0.41%)
We assign a fundamental rating of 6 out of 10 to PG. PG was compared to 12 industry peers in the Household Products industry. While PG has a great profitability rating, there are some minor concerns on its financial health. 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.
In the past year PG had a positive cash flow from operations.
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.
PG has a Return On Invested Capital of 18.64%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
PG had an Average Return On Invested Capital over the past 3 years of 17.42%. This is above the industry average of 14.87%.
The 3 year average ROIC (17.42%) for PG is below the current ROIC(18.64%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 19.39%, PG belongs to the best 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 (24.66%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PG has remained more or less at the same level.
With an excellent Gross Margin value of 51.23%, PG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of PG has remained more or less at the same level.
| 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
PG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
PG has a worse debt/assets ratio than last year.
2.2 Solvency
PG has an Altman-Z score of 5.26. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.26, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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.
The Debt to FCF ratio of PG (2.41) is better than 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.
Looking at the Debt to Equity ratio, with a value of 0.46, 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 | 0.46 | ||
| 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.
The Current ratio of PG (0.71) is worse than 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 has a Quick ratio of 0.51. This is amonst the worse of the industry: PG underperforms 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%.
PG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
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
Based on estimates for the next years, PG will show a small growth in Earnings Per Share. The EPS will grow by 5.04% on average per year.
Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.04%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
Revenue Next 5Y3.35%
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.
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
PG is valuated rather expensively with a Price/Earnings ratio of 20.91.
Based on the Price/Earnings ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.25. PG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.98, 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 23.98. PG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PG is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.52 | ||
| EV/EBITDA | 15.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PG may justify a higher PE ratio.
PEG (NY)3.86
PEG (5Y)3.52
EPS Next 2Y5.43%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, PG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.76, PG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, PG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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 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
60.57% of the earnings are spent on dividend by PG. 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%
NYSE:PG (1/13/2026, 3:53:09 PM)
144.055
+0.59 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.12%
Inst Owner Change0.17%
Ins Owners0.04%
Ins Owner Change5.46%
Market Cap336.62B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts77.71
Price Target172.1 (19.47%)
Short Float %0.76%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)-1.6%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.98 | ||
| P/S | 3.96 | ||
| P/FCF | 22.52 | ||
| P/OCF | 17.79 | ||
| P/B | 6.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.11 |
EPS(TTM)6.89
EY4.78%
EPS(NY)7.59
Fwd EY5.27%
FCF(TTM)6.4
FCFY4.44%
OCF(TTM)8.1
OCFY5.62%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)3.86
PEG (5Y)3.52
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 5Y5.04%
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 5Y3.35%
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%.