PROCTER & GAMBLE CO/THE (PRG.DE) Stock Fundamental Analysis
FRA:PRG - Deutsche Boerse Ag - US7427181091 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to PRG. PRG was compared to 7 industry peers in the Household Products industry. While PRG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PRG is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PRG was profitable.
PRG had a positive operating cash flow in the past year.
In the past 5 years PRG has always been profitable.
PRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRG has a Return On Assets of 12.39%. This is in the better half of the industry: PRG outperforms 71.43% of its industry peers.
PRG has a better Return On Equity (29.69%) than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.25%, PRG is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PRG is in line with the industry average of 17.71%.
The last Return On Invested Capital (18.25%) for PRG is above the 3 year average (16.90%), which is a sign of increasing profitability.
| 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
PRG has a Profit Margin of 18.01%. This is amongst the best in the industry. PRG outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a better Operating Margin (24.02%) than 100.00% of its industry peers.
PRG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 51.59%, PRG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
PRG'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
PRG 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, PRG has less shares outstanding
The number of shares outstanding for PRG has been reduced compared to 5 years ago.
Compared to 1 year ago, PRG has an improved debt to assets ratio.
2.2 Solvency
PRG has an Altman-Z score of 6.12. This indicates that PRG is financially healthy and has little risk of bankruptcy at the moment.
PRG has a better Altman-Z score (6.12) than 85.71% of its industry peers.
The Debt to FCF ratio of PRG is 2.24, which is a good value as it means it would take PRG, 2.24 years of fcf income to pay off all of its debts.
PRG's Debt to FCF ratio of 2.24 is in line compared to the rest of the industry. PRG outperforms 57.14% of its industry peers.
PRG has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
PRG's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. PRG outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 6.12 |
ROIC/WACC2.12
WACC8.59%
2.3 Liquidity
PRG has a Current Ratio of 0.76. 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's Current ratio of 0.76 is in line compared to the rest of the industry. PRG outperforms 42.86% of its industry peers.
PRG has a Quick Ratio of 0.76. 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 0.55, PRG perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
PRG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.99%.
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 small growth in Revenue. The Revenue has grown by 0.49% in the last year.
Measured over the past years, PRG shows a small growth in Revenue. The Revenue has been growing by 4.42% on average per year.
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
The Earnings Per Share is expected to grow by 6.24% on average over the next years.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y8.27%
EPS Next 2Y7.29%
EPS Next 3Y7.21%
EPS Next 5Y6.24%
Revenue Next Year1.04%
Revenue Next 2Y2.11%
Revenue Next 3Y2.7%
Revenue Next 5Y3.21%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PRG is valuated quite expensively with a Price/Earnings ratio of 26.11.
Compared to the rest of the industry, the Price/Earnings ratio of PRG is on the same level as its industry peers.
PRG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.17 indicates a rather expensive valuation of PRG.
PRG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, PRG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 23.17 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than PRG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PRG is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.64 | ||
| EV/EBITDA | 19.13 |
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)3.16
PEG (5Y)3.35
EPS Next 2Y7.29%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
PRG's Dividend Yield is comparable with the industry average which is at 2.77.
PRG's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
63.32% of the earnings are spent on dividend by PRG. This is not a sustainable payout ratio.
The dividend of PRG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP63.32%
EPS Next 2Y7.29%
EPS Next 3Y7.21%
FRA:PRG (3/10/2025, 10:44:27 AM)
161.86
-2.56 (-1.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners69.64%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap379.54B
Analysts77.84
Price Target175.58 (8.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend3.63
Dividend Growth(5Y)5.65%
DP63.32%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)1.46%
PT rev (3m)-0.25%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 23.17 | ||
| P/S | 4.89 | ||
| P/FCF | 26.64 | ||
| P/OCF | 21.73 | ||
| P/B | 8.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.13 |
EPS(TTM)6.2
EY3.83%
EPS(NY)6.99
Fwd EY4.32%
FCF(TTM)6.08
FCFY3.75%
OCF(TTM)7.45
OCFY4.6%
SpS33.13
BVpS20.1
TBVpS-4.15
PEG (NY)3.16
PEG (5Y)3.35
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 | 6.12 |
F-Score7
WACC8.59%
ROIC/WACC2.12
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 Y8.27%
EPS Next 2Y7.29%
EPS Next 3Y7.21%
EPS Next 5Y6.24%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%2.06%
Revenue Next Year1.04%
Revenue Next 2Y2.11%
Revenue Next 3Y2.7%
Revenue Next 5Y3.21%
EBIT growth 1Y1.09%
EBIT growth 3Y3.51%
EBIT growth 5Y6.61%
EBIT Next Year20.36%
EBIT Next 3Y10.7%
EBIT Next 5Y7.23%
FCF growth 1Y33.75%
FCF growth 3Y1.97%
FCF growth 5Y6.79%
OCF growth 1Y29.88%
OCF growth 3Y2.61%
OCF growth 5Y5.42%