PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
NYSE:PG - New York Stock Exchange, Inc. - US7427181091 - Common Stock - Currency: USD
PG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. Both the health and profitability get an excellent rating, making PG a very profitable company, without any liquidiy or solvency issues. PG has a expensive valuation and it also scores bad on growth.
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.
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 of 12.39%. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 29.69%, PG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.25%, PG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PG is in line with the industry average of 15.44%.
The 3 year average ROIC (16.90%) for PG is below the current ROIC(18.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.39% | ||
| ROE | 29.69% | ||
| ROIC | 18.25% |
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
Looking at the Profit Margin, with a value of 18.01%, 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 grown nicely.
PG has a better Operating Margin (24.02%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PG has grown nicely.
PG has a better Gross Margin (51.59%) 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 | 24.02% | ||
| PM (TTM) | 18.01% | ||
| GM | 51.59% |
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.
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.
The debt/assets ratio for PG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.87 indicates that PG is not in any danger for bankruptcy at the moment.
PG has a better Altman-Z score (5.87) than 75.00% of its industry peers.
The Debt to FCF ratio of PG is 2.24, which is a good value as it means it would take PG, 2.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.24, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that PG is not too dependend on debt financing.
PG's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. PG outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 5.87 |
ROIC/WACC2.13
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.76 indicates that PG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, PG is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that PG may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, 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 | 0.76 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.99%.
Measured over the past 5 years, PG shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
Looking at the last year, PG shows a small growth in Revenue. The Revenue has grown by 0.49% in the last 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)4.99%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%2.17%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%2.06%
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 5.49% on average per year.
The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y6.63%
EPS Next 3Y6.68%
EPS Next 5Y5.49%
Revenue Next Year0.65%
Revenue Next 2Y1.85%
Revenue Next 3Y2.56%
Revenue Next 5Y3.32%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PG is valuated rather expensively with a Price/Earnings ratio of 24.94.
66.67% of the companies in the same industry are cheaper than PG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.63, PG is valued at the same level.
PG is valuated rather expensively with a Price/Forward Earnings ratio of 22.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PG is on the same level as its industry peers.
PG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 22.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.44 | ||
| EV/EBITDA | 17.84 |
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)3.45
PEG (5Y)3.2
EPS Next 2Y6.63%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.48%.
PG's Dividend Yield is comparable with the industry average which is at 2.74.
Compared to an average S&P500 Dividend Yield of 2.51, PG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 Years34
Div Non Decr Years34
5.3 Sustainability
PG pays out 63.32% 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.
DP63.32%
EPS Next 2Y6.63%
EPS Next 3Y6.68%
NYSE:PG (4/22/2025, 12:20:10 PM)
167.86
+2.11 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners69.64%
Inst Owner Change0.65%
Ins Owners0.04%
Ins Owner Change-0.53%
Market Cap393.61B
Analysts77.84
Price Target183.94 (9.58%)
Short Float %0.77%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend3.95
Dividend Growth(5Y)5.65%
DP63.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.47%
Min EPS beat(2)-1.67%
Max EPS beat(2)-1.27%
EPS beat(4)1
Avg EPS beat(4)0.12%
Min EPS beat(4)-1.67%
Max EPS beat(4)4.36%
EPS beat(8)5
Avg EPS beat(8)1.27%
EPS beat(12)5
Avg EPS beat(12)0.17%
EPS beat(16)7
Avg EPS beat(16)0.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.22%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)-1.38%
Revenue beat(8)1
Avg Revenue beat(8)-2.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.9%
Revenue beat(16)4
Avg Revenue beat(16)-1.59%
PT rev (1m)-0.09%
PT rev (3m)-1.61%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-5.06%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 22.4 | ||
| P/S | 4.67 | ||
| P/FCF | 25.44 | ||
| P/OCF | 20.75 | ||
| P/B | 7.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.84 |
EPS(TTM)6.73
EY4.01%
EPS(NY)7.49
Fwd EY4.46%
FCF(TTM)6.6
FCFY3.93%
OCF(TTM)8.09
OCFY4.82%
SpS35.97
BVpS21.82
TBVpS-4.5
PEG (NY)3.45
PEG (5Y)3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.39% | ||
| ROE | 29.69% | ||
| ROCE | 22.8% | ||
| ROIC | 18.25% | ||
| ROICexc | 20.63% | ||
| ROICexgc | 96.06% | ||
| OM | 24.02% | ||
| PM (TTM) | 18.01% | ||
| GM | 51.59% | ||
| FCFM | 18.34% |
ROA(3y)12.05%
ROA(5y)11.7%
ROE(3y)30.21%
ROE(5y)29.67%
ROIC(3y)16.9%
ROIC(5y)16.08%
ROICexc(3y)18.64%
ROICexc(5y)18.08%
ROICexgc(3y)84.41%
ROICexgc(5y)84.26%
ROCE(3y)22.01%
ROCE(5y)21.21%
ROICexcg growth 3Y2.85%
ROICexcg growth 5Y6.24%
ROICexc growth 3Y4.33%
ROICexc growth 5Y7.11%
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%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 120.33% | ||
| Cap/Sales | 4.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.88% | ||
| Profit Quality | 101.82% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 5.87 |
F-Score7
WACC8.58%
ROIC/WACC2.13
Cap/Depr(3y)113.32%
Cap/Depr(5y)108.77%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.92%
Profit Quality(3y)100.99%
Profit Quality(5y)105.25%
High Growth Momentum
Growth
EPS 1Y (TTM)4.99%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%2.17%
EPS Next Y7.24%
EPS Next 2Y6.63%
EPS Next 3Y6.68%
EPS Next 5Y5.49%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%2.06%
Revenue Next Year0.65%
Revenue Next 2Y1.85%
Revenue Next 3Y2.56%
Revenue Next 5Y3.32%
EBIT growth 1Y1.09%
EBIT growth 3Y3.51%
EBIT growth 5Y6.61%
EBIT Next Year19.68%
EBIT Next 3Y10.25%
EBIT Next 5Y6.74%
FCF growth 1Y33.75%
FCF growth 3Y1.97%
FCF growth 5Y6.79%
OCF growth 1Y29.88%
OCF growth 3Y2.61%
OCF growth 5Y5.42%