PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
144.49 USD
+1.31 (+0.91%)
144.49 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PG. PG was compared to 12 industry peers in the Household Products industry. PG has an excellent profitability rating, but there are some minor concerns on its financial health. PG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PG was profitable.
PG had a positive operating cash flow in the past year.
Each year in the past 5 years PG has been profitable.
PG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PG has a Return On Assets of 12.91%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
PG has a Return On Equity of 30.92%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
PG has a Return On Invested Capital of 18.64%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
PG had an Average Return On Invested Capital over the past 3 years of 17.42%. This is above the industry average of 14.85%.
The 3 year average ROIC (17.42%) for PG 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
The Profit Margin of PG (19.39%) is better than 100.00% of its industry peers.
PG's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 24.66%, PG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PG's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 51.23%, PG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
PG'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 PG is creating value.
The number of shares outstanding for PG has been reduced compared to 1 year ago.
Compared to 5 years ago, PG has less shares outstanding
The debt/assets ratio for PG is higher compared to a year ago.
2.2 Solvency
PG has an Altman-Z score of 5.26. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PG (5.26) is better than 75.00% of its industry peers.
PG has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as PG would need 2.41 years to pay back of all of its debts.
PG's Debt to FCF ratio of 2.41 is fine compared to the rest of the industry. PG outperforms 75.00% of its industry peers.
PG 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, PG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.26 |
ROIC/WACC2.23
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.71 indicates that PG may have some problems paying its short term obligations.
PG has a Current ratio of 0.71. This is amonst the worse of the industry: PG underperforms 91.67% of its industry peers.
PG has a Quick Ratio of 0.71. This is a bad value and indicates that PG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PG (0.51) is worse than 83.33% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.99%.
PG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
Looking at the last year, PG shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)2.99%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%3.11%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
3.2 Future
The Earnings Per Share is expected to grow by 5.21% 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 3.37% yearly.
EPS Next Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.21%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PG is valuated rather expensively with a Price/Earnings ratio of 20.97.
Based on the Price/Earnings ratio, PG is valued a bit more expensive than 66.67% of the companies in the same industry.
PG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.50.
A Price/Forward Earnings ratio of 19.03 indicates a rather expensive valuation of PG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PG to the average of the S&P500 Index (23.93), we can say PG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 19.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PG is valued more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.59 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PG may justify a higher PE ratio.
PEG (NY)3.87
PEG (5Y)3.53
EPS Next 2Y5.43%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
PG's Dividend Yield is comparable with the industry average which is at 2.77.
PG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of PG is nicely growing with an annual growth rate of 6.09%!
PG has been paying a dividend for at least 10 years, so it has a reliable track record.
PG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
PG pays out 60.57% of its income as dividend. This is not a sustainable payout ratio.
PG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.57%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
144.49
+1.31 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.14%
Inst Owner Change-3.71%
Ins Owners0.04%
Ins Owner Change5.46%
Market Cap337.63B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts76.57
Price Target172.1 (19.11%)
Short Float %0.84%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)1.21%
Max EPS beat(2)1.94%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-1.99%
Max EPS beat(4)1.94%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)0.71%
EPS beat(16)7
Avg EPS beat(16)0.04%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.13%
Revenue beat(12)1
Avg Revenue beat(12)-2.39%
Revenue beat(16)3
Avg Revenue beat(16)-1.99%
PT rev (1m)0.2%
PT rev (3m)-1.74%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 19.03 | ||
| P/S | 3.98 | ||
| P/FCF | 22.59 | ||
| P/OCF | 17.84 | ||
| P/B | 6.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.08 |
EPS(TTM)6.89
EY4.77%
EPS(NY)7.59
Fwd EY5.25%
FCF(TTM)6.4
FCFY4.43%
OCF(TTM)8.1
OCFY5.61%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)3.87
PEG (5Y)3.53
Graham Number59.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 30.92% | ||
| ROCE | 23.37% | ||
| ROIC | 18.64% | ||
| ROICexc | 21.29% | ||
| ROICexgc | 111.54% | ||
| OM | 24.66% | ||
| PM (TTM) | 19.39% | ||
| GM | 51.23% | ||
| FCFM | 17.6% |
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%
ROICexgc growth 3Y9.9%
ROICexgc 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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 138.19% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.44% | ||
| Profit Quality | 90.74% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 5.26 |
F-Score7
WACC8.37%
ROIC/WACC2.23
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)2.99%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%3.11%
EPS Next Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.21%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.42%
EBIT Next 3Y9.44%
EBIT Next 5Y6.81%
FCF growth 1Y2.48%
FCF growth 3Y1.16%
FCF growth 5Y-0.4%
OCF growth 1Y7.04%
OCF growth 3Y2.13%
OCF growth 5Y0.47%
PROCTER & GAMBLE CO/THE / PG FAQ
Can you provide the ChartMill fundamental rating for PROCTER & GAMBLE CO/THE?
ChartMill assigns a fundamental rating of 6 / 10 to PG.
Can you provide the valuation status for PROCTER & GAMBLE CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to PROCTER & GAMBLE CO/THE (PG). This can be considered as Overvalued.
What is the profitability of PG stock?
PROCTER & GAMBLE CO/THE (PG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PROCTER & GAMBLE CO/THE (PG) stock?
The Price/Earnings (PE) ratio for PROCTER & GAMBLE CO/THE (PG) is 20.97 and the Price/Book (PB) ratio is 6.34.
Can you provide the financial health for PG stock?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10.