PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - NYSE:PG - US7427181091 - Common Stock
152.62 USD
-0.45 (-0.29%)
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 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.
In the past year PG had a positive cash flow from operations.
In the past 5 years PG has always been profitable.
Each year in the past 5 years PG had a positive operating cash flow.
1.2 Ratios
PG has a Return On Assets (12.52%) which is comparable to the rest of the industry.
With a Return On Equity value of 29.99%, PG perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
With a decent Return On Invested Capital value of 18.57%, PG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PG is in line with the industry average of 15.56%.
The last Return On Invested Capital (18.57%) for PG is above the 3 year average (17.42%), which is a sign of increasing profitability.
| 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.
PG's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 24.65%, PG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PG has remained more or less at the same level.
PG's Gross Margin of 51.34% is amongst the best of the industry. PG outperforms 83.33% of its industry peers.
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
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.
PG has less shares outstanding than it did 5 years ago.
PG has a worse debt/assets ratio than last year.
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.
PG has a Debt to FCF ratio of 2.46. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that PG is not too dependend on debt financing.
PG has a Debt to Equity ratio of 0.48. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC2.22
WACC8.37%
2.3 Liquidity
PG has a Current Ratio of 0.70. 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'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 worse Quick ratio (0.49) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.64%.
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 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 4.94% on average over the next years.
The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y5.44%
EPS Next 2Y5.73%
EPS Next 3Y5.83%
EPS Next 5Y4.94%
Revenue Next Year3.32%
Revenue Next 2Y3.19%
Revenue Next 3Y3.34%
Revenue Next 5Y3.35%
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.
4. Valuation
4.1 Price/Earnings Ratio
PG is valuated rather expensively with a Price/Earnings ratio of 22.35.
PG's Price/Earnings ratio is a bit more expensive when compared to the industry. PG is more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, PG is valued at the same level.
A Price/Forward Earnings ratio of 21.19 indicates a rather expensive valuation of PG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PG indicates a slightly more expensive valuation: PG is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. PG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 21.19 |
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.
83.33% of the companies in the same industry are cheaper than PG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.43 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PG does not grow enough to justify the current Price/Earnings ratio.
PG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.11
PEG (5Y)3.77
EPS Next 2Y5.73%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.69%.
Compared to an average industry Dividend Yield of 2.88, PG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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 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 62.96% 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.
DP62.96%
EPS Next 2Y5.73%
EPS Next 3Y5.83%
NYSE:PG (9/23/2025, 9:44:08 AM)
152.62
-0.45 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.15%
Inst Owner Change2.35%
Ins Owners0.04%
Ins Owner Change4.77%
Market Cap357.21B
Analysts77.14
Price Target175.15 (14.76%)
Short Float %0.74%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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)0%
PT rev (3m)-1.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 21.19 | ||
| P/S | 4.24 | ||
| P/FCF | 25.43 | ||
| P/OCF | 20.05 | ||
| P/B | 6.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.22 |
EPS(TTM)6.83
EY4.48%
EPS(NY)7.2
Fwd EY4.72%
FCF(TTM)6
FCFY3.93%
OCF(TTM)7.61
OCFY4.99%
SpS36.01
BVpS22.34
TBVpS-4.82
PEG (NY)4.11
PEG (5Y)3.77
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
WACC8.37%
ROIC/WACC2.22
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 Y5.44%
EPS Next 2Y5.73%
EPS Next 3Y5.83%
EPS Next 5Y4.94%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.74%
Revenue Next Year3.32%
Revenue Next 2Y3.19%
Revenue Next 3Y3.34%
Revenue Next 5Y3.35%
EBIT growth 1Y2.85%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year19.07%
EBIT Next 3Y9.4%
EBIT Next 5Y6.71%
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%