PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - NYSE:PG - US7427181091 - Common Stock
149.16 USD
+1.67 (+1.13%)
149.36 USD
+0.2 (+0.13%)
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
In the past year PG was profitable.
PG had a positive operating cash flow in the past year.
PG had positive earnings in each of the past 5 years.
PG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PG has a Return On Assets of 12.52%. This is comparable to the rest of the industry: PG outperforms 58.33% of its industry peers.
Looking at the Return On Equity, with a value of 29.99%, PG is in line with its industry, outperforming 58.33% of the companies in the same 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.
Measured over the past 3 years, the Average Return On Invested Capital for PG 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
The Profit Margin of PG (18.60%) is better than 100.00% of its industry peers.
PG's Profit Margin has been stable in the last couple of years.
PG has a Operating Margin of 24.65%. This is amongst the best in the industry. PG outperforms 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.
PG's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, PG has less shares outstanding
PG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PG has a worse debt to assets ratio.
2.2 Solvency
PG has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as PG would need 2.46 years to pay back of 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.
PG has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, 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 | 0.48 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC2.24
WACC8.28%
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.
The Current ratio of PG (0.70) is worse than 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's Quick ratio of 0.49 is on the low side compared to the rest of the industry. PG is outperformed by 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%.
The Earnings Per Share has been growing slightly by 5.93% on average over the past years.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.29%.
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
PG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.94% yearly.
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 3Y5.61%
EPS Next 5Y4.94%
Revenue Next Year3.26%
Revenue Next 2Y3.16%
Revenue Next 3Y3.26%
Revenue Next 5Y3.35%
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 21.84, the valuation of PG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PG indicates a slightly more expensive valuation: PG is more expensive than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PG to the average of the S&P500 Index (27.50), we can say PG is valued slightly cheaper.
PG is valuated rather expensively with a Price/Forward Earnings ratio of 20.71.
Based on the Price/Forward Earnings ratio, PG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of PG to the average of the S&P500 Index (22.99), we can say PG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 20.71 |
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 | 24.86 | ||
| EV/EBITDA | 15.67 |
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)4.01
PEG (5Y)3.68
EPS Next 2Y5.73%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.81%.
Compared to an average industry Dividend Yield of 3.06, PG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
On average, the dividend of PG grows each year by 6.09%, which is quite nice.
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)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
62.96% of the earnings are spent on dividend by PG. 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 3Y5.61%
149.16
+1.67 (+1.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.15%
Inst Owner Change-0.05%
Ins Owners0.04%
Ins Owner Change5.4%
Market Cap349.11B
Analysts77.14
Price Target174.9 (17.26%)
Short Float %0.75%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)-0.15%
PT rev (3m)-1.76%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 20.71 | ||
| P/S | 4.14 | ||
| P/FCF | 24.86 | ||
| P/OCF | 19.59 | ||
| P/B | 6.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.67 |
EPS(TTM)6.83
EY4.58%
EPS(NY)7.2
Fwd EY4.83%
FCF(TTM)6
FCFY4.02%
OCF(TTM)7.61
OCFY5.1%
SpS36.01
BVpS22.34
TBVpS-4.82
PEG (NY)4.01
PEG (5Y)3.68
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
WACC8.28%
ROIC/WACC2.24
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 3Y5.61%
EPS Next 5Y4.94%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%1.74%
Revenue Next Year3.26%
Revenue Next 2Y3.16%
Revenue Next 3Y3.26%
Revenue Next 5Y3.35%
EBIT growth 1Y2.85%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year19.07%
EBIT Next 3Y9.11%
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%