PROCTER & GAMBLE CO/THE (PG)
US7427181091 - Common Stock
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. PG scores excellent on profitability, but there are some minor concerns on its financial health. PG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 (12.41%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 29.66%, PG is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 18.78%, PG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PG is in line with the industry average of 14.40%.
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 Rank | Sector 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.
With an excellent Gross Margin value of 51.09%, 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
PG has a worse debt/assets ratio than last year.
2.2 Solvency
PG has an Altman-Z score of 6.02. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
PG has a Altman-Z score of 6.02. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
The Debt to FCF ratio of PG is 1.98, which is an excellent value as it means it would take PG, only 1.98 years of fcf income to pay off all of its debts.
PG has a Debt to FCF ratio of 1.98. This is amongst the best in the industry. PG outperforms 91.67% of its industry peers.
PG has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PG (0.48) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 6.02 |
ROIC/WACC2.24
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PG may have some problems paying its short term obligations.
The Current ratio of PG (0.69) is worse than 91.67% of its industry peers.
A Quick Ratio of 0.48 indicates that PG may have some problems paying its short term obligations.
PG has a worse Quick ratio (0.48) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
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.
PG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.93% yearly.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
PG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.18% yearly.
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.
PG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
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
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
Based on the Price/Earnings ratio of 25.44, the valuation of PG can be described as expensive.
66.67% of the companies in the same industry are cheaper than PG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.29, PG is valued at the same level.
With a Price/Forward Earnings ratio of 23.25, PG is valued on the expensive side.
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 (20.35), we can say PG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.44 | ||
| Fwd PE | 23.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than 75.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.38 | ||
| EV/EBITDA | 18.33 |
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 decent profitability rating of PG may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)3.67
EPS Next 2Y10.3%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, PG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.53, PG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, PG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of PG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.54%
EPS Next 2Y10.3%
EPS Next 3Y9.26%
PROCTER & GAMBLE CO/THE
NYSE:PG (7/25/2024, 7:06:04 PM)
After market: 166.9 0 (0%)166.9
-1.1 (-0.65%)
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 Cap393.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.44 | ||
| Fwd PE | 23.25 | ||
| 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)1.78
PEG (5Y)3.67
Profitability
| Industry Rank | Sector 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 Rank | Sector 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