PROCTER & GAMBLE CO/THE (PRG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PRG - US7427181091 - Common Stock
127.62 EUR
-0.78 (-0.61%)
PRG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. PRG has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, PRG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- PRG had positive earnings in the past year.
- In the past year PRG had a positive cash flow from operations.
- 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's Return On Assets of 12.91% is fine compared to the rest of the industry. PRG outperforms 75.00% of its industry peers.
- PRG has a better Return On Equity (30.92%) than 75.00% of its industry peers.
- The Return On Invested Capital of PRG (18.64%) is better than 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PRG is in line with the industry average of 17.69%.
- The 3 year average ROIC (17.42%) for PRG 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
- Looking at the Profit Margin, with a value of 19.39%, PRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- PRG's Profit Margin has been stable in the last couple of years.
- PRG has a better Operating Margin (24.66%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of PRG has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 51.23%, PRG is in the better half of the industry, outperforming 75.00% 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 | 24.66% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PRG 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 a worse debt to assets ratio.
2.2 Solvency
- PRG has an Altman-Z score of 5.38. This indicates that PRG is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 5.38, PRG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- The Debt to FCF ratio of PRG is 2.41, which is a good value as it means it would take PRG, 2.41 years of fcf income to pay off all of its debts.
- PRG has a Debt to FCF ratio of 2.41. This is in the better half of the industry: PRG outperforms 75.00% of its industry peers.
- PRG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.46, PRG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.38 |
ROIC/WACC2.22
WACC8.39%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that PRG may have some problems paying its short term obligations.
- PRG has a Current ratio of 0.71. This is comparable to the rest of the industry: PRG outperforms 41.67% of 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 0.51, PRG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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 2.38% over the past year.
- Measured over the past 5 years, PRG shows a small growth in Earnings Per Share. The EPS has been growing by 5.93% on average per year.
- The Revenue has been growing slightly by 0.29% in the past year.
- Measured over the past years, PRG shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
EPS 1Y (TTM)2.38%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%0%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.49%
3.2 Future
- Based on estimates for the next years, PRG will show a small growth in Earnings Per Share. The EPS will grow by 5.04% on average per year.
- Based on estimates for the next years, PRG will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y5.12%
EPS Next 2Y5.17%
EPS Next 3Y5.34%
EPS Next 5Y5.04%
Revenue Next Year2.9%
Revenue Next 2Y2.8%
Revenue Next 3Y2.98%
Revenue Next 5Y3.35%
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.
- 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
- With a Price/Earnings ratio of 21.74, PRG is valued on the expensive side.
- PRG's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. PRG is valued slightly cheaper when compared to this.
- PRG is valuated rather expensively with a Price/Forward Earnings ratio of 19.83.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PRG is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, PRG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRG is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, PRG 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 | 23.43 | ||
| EV/EBITDA | 15.74 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.25
PEG (5Y)3.66
EPS Next 2Y5.17%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
- PRG has a Yearly Dividend Yield of 2.82%.
- Compared to an average industry Dividend Yield of 3.04, PRG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, PRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
- The dividend of PRG is nicely growing with an annual growth rate of 6.09%!
Dividend Growth(5Y)6.09%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- PRG pays out 60.57% 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.
DP60.57%
EPS Next 2Y5.17%
EPS Next 3Y5.34%
PROCTER & GAMBLE CO/THE / PRG.DE FAQ
Can you provide the ChartMill fundamental rating for PROCTER & GAMBLE CO/THE?
ChartMill assigns a fundamental rating of 5 / 10 to PRG.DE.
Can you provide the valuation status for PROCTER & GAMBLE CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to PROCTER & GAMBLE CO/THE (PRG.DE). This can be considered as Overvalued.
How profitable is PROCTER & GAMBLE CO/THE (PRG.DE) stock?
PROCTER & GAMBLE CO/THE (PRG.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for PRG stock?
The Price/Earnings (PE) ratio for PROCTER & GAMBLE CO/THE (PRG.DE) is 21.74 and the Price/Book (PB) ratio is 6.57.
Can you provide the financial health for PRG stock?
The financial health rating of PROCTER & GAMBLE CO/THE (PRG.DE) is 5 / 10.