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PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis

NYSE:PG - New York Stock Exchange, Inc. - US7427181091 - Common Stock - Currency: USD

161.2  -0.02 (-0.01%)

Premarket: 161.2 0 (0%)

Fundamental Rating

6

Taking everything into account, PG scores 6 out of 10 in our fundamental rating. PG was compared to 12 industry peers in the Household Products industry. PG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PG does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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8

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.
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.
PG Yearly Net Income VS EBIT VS OCF VS FCFPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

1.2 Ratios

PG has a Return On Assets (12.36%) which is in line with its industry peers.
The Return On Equity of PG (29.09%) is comparable to the rest of the industry.
PG's Return On Invested Capital of 18.35% is fine compared to the rest of the industry. PG outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PG is in line with the industry average of 15.82%.
The last Return On Invested Capital (18.35%) for PG is above the 3 year average (16.90%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.36%
ROE 29.09%
ROIC 18.35%
ROA(3y)12.05%
ROA(5y)11.7%
ROE(3y)30.21%
ROE(5y)29.67%
ROIC(3y)16.9%
ROIC(5y)16.08%
PG Yearly ROA, ROE, ROICPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

PG's Profit Margin of 18.12% is amongst the best of the industry. PG outperforms 100.00% of its industry peers.
PG's Profit Margin has improved in the last couple of years.
PG has a Operating Margin of 24.23%. 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 grown nicely.
With an excellent Gross Margin value of 51.51%, 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 RankSector Rank
OM 24.23%
PM (TTM) 18.12%
GM 51.51%
OM growth 3Y0.15%
OM growth 5Y2.1%
PM growth 3Y-1.98%
PM growth 5Y26.46%
GM growth 3Y0.17%
GM growth 5Y0.73%
PG Yearly Profit, Operating, Gross MarginsPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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7

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.
The number of shares outstanding for PG has been reduced compared to 5 years ago.
PG has a better debt/assets ratio than last year.
PG Yearly Shares OutstandingPG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
PG Yearly Total Debt VS Total AssetsPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 5.81 indicates that PG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PG (5.81) is better than 75.00% of its industry peers.
PG has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as PG would need 2.27 years to pay back of all of its debts.
PG's Debt to FCF ratio of 2.27 is amongst the best of the industry. PG outperforms 83.33% 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.
With a decent Debt to Equity ratio value of 0.46, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 2.27
Altman-Z 5.81
ROIC/WACC2.15
WACC8.53%
PG Yearly LT Debt VS Equity VS FCFPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

PG has a Current 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.
Looking at the Current ratio, with a value of 0.71, PG is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that PG may have some problems paying its short term obligations.
PG's Quick ratio of 0.50 is on the low side compared to the rest of the industry. PG is outperformed by 75.00% 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 RankSector Rank
Current Ratio 0.71
Quick Ratio 0.5
PG Yearly Current Assets VS Current LiabilitesPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.90% over the past year.
The Earnings Per Share has been growing slightly by 7.78% on average over the past years.
Looking at the last year, PG shows a decrease in Revenue. The Revenue has decreased by -0.16% in the last year.
The Revenue has been growing slightly by 4.42% on average over the past years.
EPS 1Y (TTM)2.9%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%1.32%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-2.07%

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 5.00% on average per year.
PG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.81% yearly.
EPS Next Y5.81%
EPS Next 2Y4.53%
EPS Next 3Y5.1%
EPS Next 5Y5%
Revenue Next Year-0.14%
Revenue Next 2Y1.3%
Revenue Next 3Y2.06%
Revenue Next 5Y2.81%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
PG Yearly Revenue VS EstimatesPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
PG Yearly EPS VS EstimatesPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.88, which indicates a rather expensive current valuation of PG.
Based on the Price/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/Earnings ratio of PG to the average of the S&P500 Index (27.28), we can say PG is valued inline with the index average.
The Price/Forward Earnings ratio is 22.39, which indicates a rather expensive current valuation of PG.
PG's Price/Forward Earnings is on the same level as the industry average.
PG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.88
Fwd PE 22.39
PG Price Earnings VS Forward Price EarningsPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PG is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
PG's Price/Free Cash Flow 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.
Industry RankSector Rank
P/FCF 25.15
EV/EBITDA 17.35
PG Per share dataPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.11
PEG (5Y)3.07
EPS Next 2Y4.53%
EPS Next 3Y5.1%

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5

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 3.11, PG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, PG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.66%

5.2 History

The dividend of PG has a limited annual growth rate of 5.65%.
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)5.65%
Div Incr Years34
Div Non Decr Years34
PG Yearly Dividends per sharePG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

PG pays out 64.24% 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.
DP64.24%
EPS Next 2Y4.53%
EPS Next 3Y5.1%
PG Yearly Income VS Free CF VS DividendPG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B
PG Dividend Payout.PG Dividend Payout, showing the Payout Ratio.PG Dividend Payout.PayoutRetained Earnings

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PROCTER & GAMBLE CO/THE

NYSE:PG (7/2/2025, 8:04:00 PM)

Premarket: 161.2 0 (0%)

161.2

-0.02 (-0.01%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-28 2025-07-28/amc
Inst Owners70.1%
Inst Owner Change1.22%
Ins Owners0.04%
Ins Owner Change-0.46%
Market Cap377.94B
Analysts78.29
Price Target178.02 (10.43%)
Short Float %0.63%
Short Ratio1.8
Dividend
Industry RankSector Rank
Dividend Yield 2.66%
Yearly Dividend3.95
Dividend Growth(5Y)5.65%
DP64.24%
Div Incr Years34
Div Non Decr Years34
Ex-Date04-21 2025-04-21 (1.0568)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-1.99%
Max EPS beat(2)-1.67%
EPS beat(4)0
Avg EPS beat(4)-1.47%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.96%
EPS beat(8)4
Avg EPS beat(8)0.95%
EPS beat(12)5
Avg EPS beat(12)0.02%
EPS beat(16)6
Avg EPS beat(16)-0.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.37%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-2.78%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)4
Avg Revenue beat(16)-1.76%
PT rev (1m)0.32%
PT rev (3m)-3.3%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-7.17%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.16%
Valuation
Industry RankSector Rank
PE 23.88
Fwd PE 22.39
P/S 4.5
P/FCF 25.15
P/OCF 20.34
P/B 7.23
P/tB N/A
EV/EBITDA 17.35
EPS(TTM)6.75
EY4.19%
EPS(NY)7.2
Fwd EY4.47%
FCF(TTM)6.41
FCFY3.98%
OCF(TTM)7.93
OCFY4.92%
SpS35.8
BVpS22.3
TBVpS-4.28
PEG (NY)4.11
PEG (5Y)3.07
Profitability
Industry RankSector Rank
ROA 12.36%
ROE 29.09%
ROCE 22.92%
ROIC 18.35%
ROICexc 20.45%
ROICexgc 94.06%
OM 24.23%
PM (TTM) 18.12%
GM 51.51%
FCFM 17.9%
ROA(3y)12.05%
ROA(5y)11.7%
ROE(3y)30.21%
ROE(5y)29.67%
ROIC(3y)16.9%
ROIC(5y)16.08%
ROICexc(3y)18.64%
ROICexc(5y)18.08%
ROICexgc(3y)84.41%
ROICexgc(5y)84.26%
ROCE(3y)22.01%
ROCE(5y)21.21%
ROICexcg growth 3Y2.85%
ROICexcg growth 5Y6.24%
ROICexc growth 3Y4.33%
ROICexc growth 5Y7.11%
OM growth 3Y0.15%
OM growth 5Y2.1%
PM growth 3Y-1.98%
PM growth 5Y26.46%
GM growth 3Y0.17%
GM growth 5Y0.73%
F-Score7
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 2.27
Debt/EBITDA 1.04
Cap/Depr 123.4%
Cap/Sales 4.24%
Interest Coverage 250
Cash Conversion 80.04%
Profit Quality 98.82%
Current Ratio 0.71
Quick Ratio 0.5
Altman-Z 5.81
F-Score7
WACC8.53%
ROIC/WACC2.15
Cap/Depr(3y)113.32%
Cap/Depr(5y)108.77%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.92%
Profit Quality(3y)100.99%
Profit Quality(5y)105.25%
High Growth Momentum
Growth
EPS 1Y (TTM)2.9%
EPS 3Y5.2%
EPS 5Y7.78%
EPS Q2Q%1.32%
EPS Next Y5.81%
EPS Next 2Y4.53%
EPS Next 3Y5.1%
EPS Next 5Y5%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y3.35%
Revenue growth 5Y4.42%
Sales Q2Q%-2.07%
Revenue Next Year-0.14%
Revenue Next 2Y1.3%
Revenue Next 3Y2.06%
Revenue Next 5Y2.81%
EBIT growth 1Y0.07%
EBIT growth 3Y3.51%
EBIT growth 5Y6.61%
EBIT Next Year17.4%
EBIT Next 3Y8.63%
EBIT Next 5Y6.59%
FCF growth 1Y23.16%
FCF growth 3Y1.97%
FCF growth 5Y6.79%
OCF growth 1Y22.11%
OCF growth 3Y2.61%
OCF growth 5Y5.42%