PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
144.46 USD
-1.06 (-0.73%)
144.51 USD
+0.05 (+0.03%)
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
In the past year PG was profitable.
PG had a positive operating cash flow in the past year.
In the past 5 years PG has always been profitable.
Each year in the past 5 years PG had a positive operating cash flow.
1.2 Ratios
PG's Return On Assets of 12.91% is fine compared to the rest of the industry. PG outperforms 66.67% of its industry peers.
PG has a Return On Equity of 30.92%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 18.64%, PG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PG is above the industry average of 14.85%.
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
PG has a Profit Margin of 19.39%. This is amongst the best in 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.
The Operating Margin of PG (24.66%) is better 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.
PG has a Gross Margin of 51.23%. This is amongst the best in the industry. PG outperforms 83.33% of its industry peers.
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.
Compared to 1 year ago, PG has less shares outstanding
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
PG has an Altman-Z score of 5.30. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PG (5.30) 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.
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.
PG has a Debt to Equity ratio of 0.46. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.3 |
ROIC/WACC2.23
WACC8.37%
2.3 Liquidity
PG has a Current 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.
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.
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.
With a Quick ratio value of 0.51, PG is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
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
The Earnings Per Share has been growing slightly by 2.99% over the past year.
The Earnings Per Share has been growing slightly by 5.93% on average over the past years.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.23%.
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 5.21% on average per year.
PG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.
EPS Next Y5.59%
EPS Next 2Y5.71%
EPS Next 3Y5.79%
EPS Next 5Y5.21%
Revenue Next Year3.35%
Revenue Next 2Y3.18%
Revenue Next 3Y3.26%
Revenue Next 5Y3.37%
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
The Price/Earnings ratio is 20.97, which indicates a rather expensive current valuation of PG.
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.
When comparing the Price/Earnings ratio of PG to the average of the S&P500 Index (26.38), we can say PG is valued slightly cheaper.
PG is valuated rather expensively with a Price/Forward Earnings ratio of 18.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.83. PG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
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 | 22.59 | ||
| EV/EBITDA | 15.31 |
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)3.75
PEG (5Y)3.53
EPS Next 2Y5.71%
EPS Next 3Y5.79%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.90%.
Compared to an average industry Dividend Yield of 2.78, PG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, PG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
On average, the dividend of PG grows each year by 6.09%, which is quite nice.
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
60.57% 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.
DP60.57%
EPS Next 2Y5.71%
EPS Next 3Y5.79%
144.46
-1.06 (-0.73%)
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 Cap337.56B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts76.57
Price Target172.1 (19.13%)
Short Float %0.84%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
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)0.25%
PT rev (3m)-1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.93 | ||
| P/S | 3.97 | ||
| P/FCF | 22.59 | ||
| P/OCF | 17.84 | ||
| P/B | 6.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.31 |
EPS(TTM)6.89
EY4.77%
EPS(NY)7.63
Fwd EY5.28%
FCF(TTM)6.4
FCFY4.43%
OCF(TTM)8.1
OCFY5.61%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)3.75
PEG (5Y)3.53
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 | 5.3 |
F-Score7
WACC8.37%
ROIC/WACC2.23
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 Y5.59%
EPS Next 2Y5.71%
EPS Next 3Y5.79%
EPS Next 5Y5.21%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.35%
Revenue Next 2Y3.18%
Revenue Next 3Y3.26%
Revenue Next 5Y3.37%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.42%
EBIT Next 3Y9.44%
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.
Can you provide the valuation status for PROCTER & GAMBLE CO/THE?
ChartMill assigns a valuation rating of 2 / 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 8 / 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 20.97 and the Price/Book (PB) ratio is 6.34.
Can you provide the financial health for PG stock?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10.