PROCTER & GAMBLE CO/THE (PRG.DE) Stock Fundamental Analysis
FRA:PRG - Deutsche Boerse Ag - US7427181091 - Common Stock - Currency: EUR
PRG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Household Products industry. Both the health and profitability get an excellent rating, making PRG a very profitable company, without any liquidiy or solvency issues. PRG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PRG was profitable.
PRG had a positive operating cash flow in the past year.
Each year in the past 5 years PRG has been profitable.
In the past 5 years PRG always reported a positive cash flow from operatings.
1.2 Ratios
PRG has a Return On Assets of 12.36%. This is in the better half of the industry: PRG outperforms 66.67% of its industry peers.
PRG's Return On Equity of 29.09% is fine compared to the rest of the industry. PRG outperforms 66.67% of its industry peers.
PRG has a better Return On Invested Capital (18.35%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRG is in line with the industry average of 18.62%.
The last Return On Invested Capital (18.35%) for PRG is above the 3 year average (16.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.36% | ||
| ROE | 29.09% | ||
| ROIC | 18.35% |
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
The Profit Margin of PRG (18.12%) is better than 88.89% of its industry peers.
In the last couple of years the Profit Margin of PRG has grown nicely.
Looking at the Operating Margin, with a value of 24.23%, PRG belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of PRG has grown nicely.
The Gross Margin of PRG (51.51%) is better than 66.67% of its industry peers.
PRG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.23% | ||
| PM (TTM) | 18.12% | ||
| GM | 51.51% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PRG is creating value.
The number of shares outstanding for PRG has been reduced compared to 1 year ago.
PRG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRG has been reduced compared to a year ago.
2.2 Solvency
PRG has an Altman-Z score of 5.74. This indicates that PRG is financially healthy and has little risk of bankruptcy at the moment.
PRG has a Altman-Z score of 5.74. This is amongst the best in the industry. PRG outperforms 88.89% of its industry peers.
The Debt to FCF ratio of PRG is 2.27, which is a good value as it means it would take PRG, 2.27 years of fcf income to pay off all of its debts.
PRG has a Debt to FCF ratio of 2.27. This is in the better half of the industry: PRG outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that PRG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.46, PRG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 5.74 |
ROIC/WACC2.13
WACC8.61%
2.3 Liquidity
PRG has a Current Ratio of 0.71. This is a bad value and indicates that PRG is not financially healthy enough and could expect problems in meeting its short term obligations.
PRG has a Current ratio (0.71) which is in line with its industry peers.
PRG has a Quick Ratio of 0.71. This is a bad value and indicates that PRG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, PRG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
The current and quick ratio evaluation for PRG 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 | 0.5 |
3. Growth
3.1 Past
PRG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.90%.
PRG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.78% yearly.
Looking at the last year, PRG shows a decrease in Revenue. The Revenue has decreased by -0.16% in the last year.
The Revenue has been growing slightly by 4.42% on average over the past years.
EPS 1Y (TTM)2.9%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%1.32%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-2.07%
3.2 Future
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
Based on estimates for the next years, PRG will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y5.81%
EPS Next 2Y4.56%
EPS Next 3Y5.13%
EPS Next 5Y5%
Revenue Next Year-0.13%
Revenue Next 2Y1.36%
Revenue Next 3Y2.09%
Revenue Next 5Y2.81%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.85, PRG is valued on the expensive side.
PRG's Price/Earnings ratio is in line with the industry average.
PRG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
PRG is valuated rather expensively with a Price/Forward Earnings ratio of 21.41.
Based on the Price/Forward Earnings ratio, PRG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
PRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRG indicates a slightly more expensive valuation: PRG is more expensive than 66.67% of the companies listed in the same industry.
66.67% of the companies in the same industry are cheaper than PRG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PRG does not grow enough to justify the current Price/Earnings ratio.
PRG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.93
PEG (5Y)2.94
EPS Next 2Y4.56%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.13, PRG has a dividend in line with its industry peers.
PRG's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of PRG has a limited annual growth rate of 5.65%.
Dividend Growth(5Y)5.65%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
PRG pays out 64.24% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.24%
EPS Next 2Y4.56%
EPS Next 3Y5.13%
FRA:PRG (7/18/2025, 7:00:00 PM)
133.22
-3 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.1%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap312.34B
Analysts78.29
Price Target154.81 (16.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend3.38
Dividend Growth(5Y)5.65%
DP64.24%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-1.99%
Max EPS beat(2)-1.67%
EPS beat(4)0
Avg EPS beat(4)-1.47%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.96%
EPS beat(8)4
Avg EPS beat(8)0.95%
EPS beat(12)5
Avg EPS beat(12)0.02%
EPS beat(16)6
Avg EPS beat(16)-0.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.37%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-2.78%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)4
Avg Revenue beat(16)-1.76%
PT rev (1m)-0.54%
PT rev (3m)-8.78%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-6.02%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-2.1%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 21.41 | ||
| P/S | 4.31 | ||
| P/FCF | 24.07 | ||
| P/OCF | 19.46 | ||
| P/B | 6.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17 |
EPS(TTM)5.83
EY4.38%
EPS(NY)6.22
Fwd EY4.67%
FCF(TTM)5.53
FCFY4.15%
OCF(TTM)6.85
OCFY5.14%
SpS30.92
BVpS19.25
TBVpS-3.7
PEG (NY)3.93
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.36% | ||
| ROE | 29.09% | ||
| ROCE | 22.92% | ||
| ROIC | 18.35% | ||
| ROICexc | 20.45% | ||
| ROICexgc | 94.06% | ||
| OM | 24.23% | ||
| PM (TTM) | 18.12% | ||
| GM | 51.51% | ||
| FCFM | 17.9% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 123.4% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.04% | ||
| Profit Quality | 98.82% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.74 |
F-Score7
WACC8.61%
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)2.9%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%1.32%
EPS Next Y5.81%
EPS Next 2Y4.56%
EPS Next 3Y5.13%
EPS Next 5Y5%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-2.07%
Revenue Next Year-0.13%
Revenue Next 2Y1.36%
Revenue Next 3Y2.09%
Revenue Next 5Y2.81%
EBIT growth 1Y0.07%
EBIT growth 3Y3.51%
EBIT growth 5Y6.61%
EBIT Next Year17.4%
EBIT Next 3Y8.63%
EBIT Next 5Y6.59%
FCF growth 1Y23.16%
FCF growth 3Y1.97%
FCF growth 5Y6.79%
OCF growth 1Y22.11%
OCF growth 3Y2.61%
OCF growth 5Y5.42%