PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
NYSE:PG - US7427181091 - Common Stock
158.67 USD
-0.06 (-0.04%)
158.75 USD
+0.08 (+0.05%)
Taking everything into account, PG scores 5 out of 10 in our fundamental rating. PG was compared to 12 industry peers in the Household Products industry. While PG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, PG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PG had positive earnings in the past year.
In the past year PG had a positive cash flow from operations.
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's Return On Assets of 12.52% is in line compared to the rest of the industry. PG outperforms 58.33% of its industry peers.
The Return On Equity of PG (29.99%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 18.57%, PG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
PG had an Average Return On Invested Capital over the past 3 years of 17.42%. This is in line with the industry average of 15.56%.
The 3 year average ROIC (17.42%) for PG is below the current ROIC(18.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.52% | ||
| ROE | 29.99% | ||
| ROIC | 18.57% |
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 18.60%, PG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PG has remained more or less at the same level.
The Operating Margin of PG (24.65%) is better 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.
Looking at the Gross Margin, with a value of 51.34%, PG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of PG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.65% | ||
| PM (TTM) | 18.6% | ||
| GM | 51.34% |
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
PG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PG has been reduced compared to 1 year ago.
The number of shares outstanding for PG has been reduced compared to 5 years ago.
Compared to 1 year ago, PG has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PG is 2.46, which is a good value as it means it would take PG, 2.46 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.46, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that PG is not too dependend on debt financing.
The Debt to Equity ratio of PG (0.48) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC2.19
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.70 indicates that PG may have some problems paying its short term obligations.
PG's Current ratio of 0.70 is on the low side compared to the rest of the industry. PG is outperformed by 91.67% of its industry peers.
A Quick Ratio of 0.49 indicates that PG may have some problems paying its short term obligations.
PG has a Quick ratio of 0.49. This is amonst the worse of the industry: PG underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.64% over the past year.
Measured over the past 5 years, PG shows a small growth in Earnings Per Share. The EPS has been growing by 5.93% on average per year.
Looking at the last year, PG shows a small growth in Revenue. The Revenue has grown by 0.29% in the last year.
PG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)3.64%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%5.71%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.74%
3.2 Future
The Earnings Per Share is expected to grow by 5.29% on average over the next years.
PG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
EPS Next Y5.41%
EPS Next 2Y5.89%
EPS Next 3Y6.06%
EPS Next 5Y5.29%
Revenue Next Year3.4%
Revenue Next 2Y3.25%
Revenue Next 3Y3.42%
Revenue Next 5Y3.55%
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 stable.
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
The Price/Earnings ratio is 23.23, which indicates a rather expensive current valuation of PG.
Based on the Price/Earnings ratio, PG is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, PG is valued at the same level.
The Price/Forward Earnings ratio is 22.04, which indicates a rather expensive current valuation of PG.
PG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PG is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PG to the average of the S&P500 Index (22.81), we can say PG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than PG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PG indicates a rather expensive valuation: PG more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.46 | ||
| EV/EBITDA | 16.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)3.92
EPS Next 2Y5.89%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.89, PG has a dividend in line with its industry peers.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of PG grows each year by 6.09%, which is quite nice.
PG has been paying a dividend for at least 10 years, so it has 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)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
PG pays out 62.96% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.96%
EPS Next 2Y5.89%
EPS Next 3Y6.06%
158.67
-0.06 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.1%
Inst Owner Change2.35%
Ins Owners0.04%
Ins Owner Change4.28%
Market Cap371.66B
Analysts76.67
Price Target175.15 (10.39%)
Short Float %0.72%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP62.96%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.39%
Min EPS beat(2)-1.99%
Max EPS beat(2)1.21%
EPS beat(4)1
Avg EPS beat(4)-0.93%
Min EPS beat(4)-1.99%
Max EPS beat(4)1.21%
EPS beat(8)4
Avg EPS beat(8)1.03%
EPS beat(12)6
Avg EPS beat(12)0.45%
EPS beat(16)6
Avg EPS beat(16)-0.19%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.08%
Revenue beat(12)1
Avg Revenue beat(12)-2.34%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)-1%
PT rev (3m)-1.29%
EPS NQ rev (1m)-1.66%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 22.04 | ||
| P/S | 4.41 | ||
| P/FCF | 26.46 | ||
| P/OCF | 20.86 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.79 |
EPS(TTM)6.83
EY4.3%
EPS(NY)7.2
Fwd EY4.54%
FCF(TTM)6
FCFY3.78%
OCF(TTM)7.61
OCFY4.79%
SpS35.98
BVpS22.32
TBVpS-4.81
PEG (NY)4.29
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.52% | ||
| ROE | 29.99% | ||
| ROCE | 23.3% | ||
| ROIC | 18.57% | ||
| ROICexc | 20.8% | ||
| ROICexgc | 103.16% | ||
| OM | 24.65% | ||
| PM (TTM) | 18.6% | ||
| GM | 51.34% | ||
| FCFM | 16.66% |
ROA(3y)12.11%
ROA(5y)12.09%
ROE(3y)29.91%
ROE(5y)30.21%
ROIC(3y)17.42%
ROIC(5y)16.87%
ROICexc(3y)19.36%
ROICexc(5y)18.73%
ROICexgc(3y)87.28%
ROICexgc(5y)85.5%
ROCE(3y)22.62%
ROCE(5y)22.11%
ROICexcg growth 3Y9.9%
ROICexcg growth 5Y5.36%
ROICexc growth 3Y5.77%
ROICexc growth 5Y4.91%
OM growth 3Y3.04%
OM growth 5Y1.21%
PM growth 3Y1.05%
PM growth 5Y0.68%
GM growth 3Y2.51%
GM growth 5Y0.06%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.46 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 132.53% | ||
| Cap/Sales | 4.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 89.56% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | N/A |
F-Score6
WACC8.49%
ROIC/WACC2.19
Cap/Depr(3y)120.02%
Cap/Depr(5y)114.88%
Cap/Sales(3y)4.05%
Cap/Sales(5y)3.95%
Profit Quality(3y)99.56%
Profit Quality(5y)100.71%
High Growth Momentum
Growth
EPS 1Y (TTM)3.64%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%5.71%
EPS Next Y5.41%
EPS Next 2Y5.89%
EPS Next 3Y6.06%
EPS Next 5Y5.29%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.74%
Revenue Next Year3.4%
Revenue Next 2Y3.25%
Revenue Next 3Y3.42%
Revenue Next 5Y3.55%
EBIT growth 1Y2.85%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.92%
EBIT Next 3Y9.32%
EBIT Next 5Y6.92%
FCF growth 1Y-15%
FCF growth 3Y1.16%
FCF growth 5Y-0.4%
OCF growth 1Y-10.22%
OCF growth 3Y2.13%
OCF growth 5Y0.47%