PROCTER & GAMBLE CO/THE (PG)
US7427181091 - Common Stock
Overall PG gets a fundamental rating of 5 out of 10. We evaluated PG against 12 industry peers in the Household Products industry. While PG has a great profitability rating, 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.
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 better Return On Assets (11.93%) than 66.67% of its industry peers.
PG has a Return On Equity of 28.87%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
PG has a better Return On Invested Capital (18.22%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PG is above the industry average of 14.51%.
The last Return On Invested Capital (18.22%) for PG is above the 3 year average (16.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 28.87% | ||
| ROIC | 18.22% |
ROA(3y)12.05%
ROA(5y)11.7%
ROE(3y)30.21%
ROE(5y)29.67%
ROIC(3y)16.9%
ROIC(5y)16.08%
1.3 Margins
PG has a Profit Margin of 17.37%. This is amongst the best in the industry. PG outperforms 100.00% of its industry peers.
PG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.03%, PG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 51.62%, 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 | 24.03% | ||
| PM (TTM) | 17.37% | ||
| GM | 51.62% |
OM growth 3Y0.15%
OM growth 5Y2.1%
PM growth 3Y-1.98%
PM growth 5Y26.46%
GM growth 3Y0.17%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
PG has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PG is 1.96, which is an excellent value as it means it would take PG, only 1.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.96, PG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that PG is not too dependend on debt financing.
PG has a Debt to Equity ratio of 0.50. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | N/A |
ROIC/WACC2.27
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.73 indicates that PG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, PG is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that PG may have some problems paying its short term obligations.
The Quick ratio of PG (0.53) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.69% over the past year.
The Earnings Per Share has been growing slightly by 7.78% on average over the past years.
The Revenue has been growing slightly by 2.48% in the past year.
PG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.42% yearly.
EPS 1Y (TTM)11.69%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%2.19%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-0.1%
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 7.17% on average per year.
Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y9.04%
EPS Next 2Y7.84%
EPS Next 3Y7.68%
EPS Next 5Y7.17%
Revenue Next Year2.29%
Revenue Next 2Y3.06%
Revenue Next 3Y3.37%
Revenue Next 5Y4.2%
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 26.64 indicates a quite expensive valuation of PG.
PG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.62, PG is valued at the same level.
With a Price/Forward Earnings ratio of 24.44, PG is valued on the expensive side.
PG's Price/Forward Earnings is on the same level as the industry average.
PG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.64 | ||
| Fwd PE | 24.44 |
4.2 Price Multiples
PG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.08 | ||
| EV/EBITDA | 18.93 |
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)2.95
PEG (5Y)3.42
EPS Next 2Y7.84%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 2.35, PG pays a bit more dividend than its industry peers.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of PG has a limited annual growth rate of 5.65%.
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)5.65%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
63.80% of the earnings are spent on dividend by PG. This is not a sustainable payout ratio.
The dividend of PG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.8%
EPS Next 2Y7.84%
EPS Next 3Y7.68%
PROCTER & GAMBLE CO/THE
NYSE:PG (9/6/2024, 8:04:00 PM)
After market: 175.5 -0.09 (-0.05%)175.59
+0.12 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap414.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.64 | ||
| Fwd PE | 24.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.95
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 28.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.03% | ||
| PM (TTM) | 17.37% | ||
| GM | 51.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.69%
EPS 3Y5.2%
EPS 5Y
EPS Q2Q%
EPS Next Y9.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.48%
Revenue growth 3Y3.35%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y