PROCTER & GAMBLE CO/THE (1PG.MI) Stock Fundamental Analysis
BIT:1PG - Euronext Milan - US7427181091 - Common Stock - Currency: EUR
Taking everything into account, 1PG scores 5 out of 10 in our fundamental rating. 1PG was compared to 9 industry peers in the Household Products industry. 1PG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1PG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
1PG had positive earnings in the past year.
In the past year 1PG had a positive cash flow from operations.
Each year in the past 5 years 1PG has been profitable.
In the past 5 years 1PG always reported a positive cash flow from operatings.
1.2 Ratios
1PG has a Return On Assets of 12.36%. This is in the better half of the industry: 1PG outperforms 66.67% of its industry peers.
1PG has a Return On Equity of 29.09%. This is in the better half of the industry: 1PG outperforms 66.67% of its industry peers.
1PG's Return On Invested Capital of 18.35% is fine compared to the rest of the industry. 1PG outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PG is in line with the industry average of 18.62%.
The 3 year average ROIC (16.90%) for 1PG is below the current ROIC(18.35%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 18.12%, 1PG belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
1PG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.23%, 1PG belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
1PG's Operating Margin has improved in the last couple of years.
1PG has a better Gross Margin (51.51%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of 1PG has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PG is creating value.
The number of shares outstanding for 1PG has been reduced compared to 1 year ago.
1PG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1PG has been reduced compared to a year ago.
2.2 Solvency
1PG has an Altman-Z score of 5.73. This indicates that 1PG is financially healthy and has little risk of bankruptcy at the moment.
1PG's Altman-Z score of 5.73 is amongst the best of the industry. 1PG outperforms 88.89% of its industry peers.
The Debt to FCF ratio of 1PG is 2.27, which is a good value as it means it would take 1PG, 2.27 years of fcf income to pay off all of its debts.
1PG has a better Debt to FCF ratio (2.27) than 66.67% of its industry peers.
1PG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
1PG's Debt to Equity ratio of 0.46 is fine compared to the rest of the industry. 1PG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 5.73 |
ROIC/WACC2.13
WACC8.61%
2.3 Liquidity
1PG has a Current Ratio of 0.71. This is a bad value and indicates that 1PG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.71, 1PG perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that 1PG may have some problems paying its short term obligations.
1PG's Quick ratio of 0.50 is in line compared to the rest of the industry. 1PG outperforms 55.56% of its industry peers.
The current and quick ratio evaluation for 1PG 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
The Earnings Per Share has been growing slightly by 2.90% over the past year.
Measured over the past 5 years, 1PG shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
1PG shows a decrease in Revenue. In the last year, the revenue decreased by -0.16%.
1PG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.42% yearly.
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
Based on estimates for the next years, 1PG will show a small growth in Earnings Per Share. The EPS will grow by 4.60% on average per year.
Based on estimates for the next years, 1PG will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
EPS Next Y5.75%
EPS Next 2Y4.43%
EPS Next 3Y4.97%
EPS Next 5Y4.6%
Revenue Next Year-0.16%
Revenue Next 2Y1.26%
Revenue Next 3Y2.06%
Revenue Next 5Y2.85%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 23.27, which indicates a rather expensive current valuation of 1PG.
The rest of the industry has a similar Price/Earnings ratio as 1PG.
1PG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.86 indicates a rather expensive valuation of 1PG.
Based on the Price/Forward Earnings ratio, 1PG is valued a bit more expensive than 66.67% of the companies in the same industry.
1PG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than 1PG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1PG is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.52 | ||
| EV/EBITDA | 16.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1PG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.05
PEG (5Y)2.99
EPS Next 2Y4.43%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, 1PG has a reasonable but not impressive dividend return.
In the last 3 months the price of 1PG has falen by -20.59%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
1PG's Dividend Yield is slightly below the industry average, which is at 3.13.
1PG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
The dividend of 1PG has a limited annual growth rate of 5.65%.
Dividend Growth(5Y)5.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1PG pays out 64.24% of its income as dividend. This is not a sustainable payout ratio.
1PG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.24%
EPS Next 2Y4.43%
EPS Next 3Y4.97%
BIT:1PG (7/8/2025, 7:00:00 PM)
135.42
-0.9 (-0.66%)
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 Cap317.50B
Analysts78.29
Price Target155.28 (14.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend3.43
Dividend Growth(5Y)5.65%
DP64.24%
Div Incr Years0
Div Non Decr Years0
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)-1.3%
PT rev (3m)-11.6%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 21.86 | ||
| P/S | 4.39 | ||
| P/FCF | 24.52 | ||
| P/OCF | 19.82 | ||
| P/B | 7.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.94 |
EPS(TTM)5.82
EY4.3%
EPS(NY)6.19
Fwd EY4.57%
FCF(TTM)5.52
FCFY4.08%
OCF(TTM)6.83
OCFY5.05%
SpS30.85
BVpS19.22
TBVpS-3.69
PEG (NY)4.05
PEG (5Y)2.99
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 | 5.73 |
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 Y5.75%
EPS Next 2Y4.43%
EPS Next 3Y4.97%
EPS Next 5Y4.6%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-2.07%
Revenue Next Year-0.16%
Revenue Next 2Y1.26%
Revenue Next 3Y2.06%
Revenue Next 5Y2.85%
EBIT growth 1Y0.07%
EBIT growth 3Y3.51%
EBIT growth 5Y6.61%
EBIT Next Year17.4%
EBIT Next 3Y8.63%
EBIT Next 5Y6.23%
FCF growth 1Y23.16%
FCF growth 3Y1.97%
FCF growth 5Y6.79%
OCF growth 1Y22.11%
OCF growth 3Y2.61%
OCF growth 5Y5.42%