PROCTER & GAMBLE CO/THE (PG)

US7427181091 - Common Stock

168.56  +1.06 (+0.63%)

After market: 168.74 +0.18 (+0.11%)

Fundamental Rating

6

PG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. PG gets an excellent profitability rating and is at the same time showing great financial health properties. PG is valied quite expensively at the moment, while it does show a decent growth rate.



8

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.
PG had positive earnings in each of the past 5 years.
In the past 5 years PG always reported a positive cash flow from operatings.

1.2 Ratios

PG has a Return On Assets of 12.41%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
PG has a Return On Equity (29.66%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 18.78%, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PG is above the industry average of 14.24%.
The last Return On Invested Capital (18.78%) for PG is above the 3 year average (16.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.41%
ROE 29.66%
ROIC 18.78%
ROA(3y)12%
ROA(5y)9.95%
ROE(3y)30.67%
ROE(5y)25.43%
ROIC(3y)16.38%
ROIC(5y)15.22%

1.3 Margins

PG has a Profit Margin of 17.66%. This is amongst the best in the industry. PG outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of PG has grown nicely.
PG has a better Operating Margin (23.99%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PG has remained more or less at the same level.
PG has a better Gross Margin (51.09%) than 83.33% of its industry peers.
PG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 23.99%
PM (TTM) 17.66%
GM 51.09%
OM growth 3Y-1.02%
OM growth 5Y0.68%
PM growth 3Y-0.87%
PM growth 5Y4.31%
GM growth 3Y-2.08%
GM growth 5Y-0.67%

7

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.
Compared to 1 year ago, PG has less shares outstanding
Compared to 5 years ago, PG has less shares outstanding
Compared to 1 year ago, PG has a worse debt to assets ratio.

2.2 Solvency

PG has an Altman-Z score of 6.03. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
PG's Altman-Z score of 6.03 is fine compared to the rest of the industry. PG outperforms 75.00% of its industry peers.
PG has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, PG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that PG is not too dependend on debt financing.
PG's Debt to Equity ratio of 0.48 is amongst the best of the industry. PG outperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.98
Altman-Z 6.03
ROIC/WACC2.26
WACC8.32%

2.3 Liquidity

PG has a Current Ratio of 0.69. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
PG has a worse Current ratio (0.69) than 91.67% of its industry peers.
PG has a Quick Ratio of 0.69. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
PG has a Quick ratio of 0.48. This is amonst the worse of the industry: PG underperforms 91.67% of its industry peers.
PG does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.48

4

3. Growth

3.1 Past

PG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
The Earnings Per Share has been growing slightly by 6.93% on average over the past years.
Looking at the last year, PG shows a small growth in Revenue. The Revenue has grown by 3.82% in the last year.
Measured over the past years, PG shows a small growth in Revenue. The Revenue has been growing by 4.18% on average per year.
EPS 1Y (TTM)14.29%
EPS 3Y4.84%
EPS 5Y6.93%
EPS Q2Q%10.95%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.95%
Revenue growth 5Y4.18%
Sales Q2Q%0.63%

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 7.96% on average per year.
Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y14.3%
EPS Next 2Y10.3%
EPS Next 3Y9.26%
EPS Next 5Y7.96%
Revenue Next Year3.56%
Revenue Next 2Y3.45%
Revenue Next 3Y3.69%
Revenue Next 5Y3.98%

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 stable: in the next years the growth will be about the same than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.70, which means the current valuation is very expensive for PG.
Based on the Price/Earnings ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.73, PG is valued at the same level.
With a Price/Forward Earnings ratio of 23.48, PG is valued on the expensive side.
PG's Price/Forward Earnings ratio is in line with the industry average.
PG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.21.
Industry RankSector Rank
PE 25.7
Fwd PE 23.48

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.
PG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 24.62
EV/EBITDA 18.39

4.3 Compensation for Growth

PG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PG may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)3.71
EPS Next 2Y10.3%
EPS Next 3Y9.26%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.42%, PG has a reasonable but not impressive dividend return.
PG's Dividend Yield is a higher than the industry average which is at 2.54.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.39.
Industry RankSector Rank
Dividend Yield 2.42%

5.2 History

The dividend of PG has a limited annual growth rate of 5.51%.
PG has paid a dividend for at least 10 years, which is a reliable track record.
PG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.51%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

PG pays out 61.54% of its income as dividend. This is not a sustainable payout ratio.
PG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.54%
EPS Next 2Y10.3%
EPS Next 3Y9.26%

PROCTER & GAMBLE CO/THE

NYSE:PG (6/18/2024, 7:04:00 PM)

After market: 168.74 +0.18 (+0.11%)

168.56

+1.06 (+0.63%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap397.83B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.42%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 25.7
Fwd PE 23.48
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.8
PEG (5Y)3.71
Profitability
Industry RankSector Rank
ROA 12.41%
ROE 29.66%
ROCE
ROIC
ROICexc
ROICexgc
OM 23.99%
PM (TTM) 17.66%
GM 51.09%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.69
Quick Ratio 0.48
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.29%
EPS 3Y4.84%
EPS 5Y
EPS Q2Q%
EPS Next Y14.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y