PROCTER & GAMBLE CO/THE (PG)
US7427181091 - Common Stock
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PG is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, PG could be worth investigating further for quality investing!.
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.
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's Return On Assets of 12.00% is fine compared to the rest of the industry. PG outperforms 66.67% of its industry peers.
PG has a Return On Equity of 29.85%. This is comparable to the rest of the industry: PG outperforms 50.00% of its industry peers.
PG has a Return On Invested Capital of 19.13%. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PG is above the industry average of 13.81%.
The 3 year average ROIC (16.38%) for PG is below the current ROIC(19.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 29.85% | ||
| ROIC | 19.13% |
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
Looking at the Profit Margin, with a value of 17.26%, PG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of PG has grown nicely.
PG has a better Operating Margin (23.77%) than 100.00% of its industry peers.
PG's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 50.36%, PG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 | 23.77% | ||
| PM (TTM) | 17.26% | ||
| GM | 50.36% |
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.
Compared to 1 year ago, PG has less shares outstanding
Compared to 5 years ago, PG has less shares outstanding
PG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.60 indicates that PG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PG (5.60) is better than 75.00% of its industry peers.
PG has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as PG would need 2.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, PG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 | 2.11 | ||
| Altman-Z | 5.6 |
ROIC/WACC2.21
WACC8.67%
2.3 Liquidity
PG has a Current Ratio of 0.64. 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 has a Current ratio of 0.64. This is amonst the worse of the industry: PG underperforms 91.67% of its industry peers.
PG has a Quick Ratio of 0.64. 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 (0.44) is worse than 91.67% of its industry peers.
The current and quick ratio evaluation for PG is rather negative, while it does have 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 | 0.64 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.46% over the past year.
Measured over the past 5 years, PG shows a small growth in Earnings Per Share. The EPS has been growing by 6.93% on average per year.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.55%.
The Revenue has been growing slightly by 4.18% on average over the past years.
EPS 1Y (TTM)12.46%
EPS 3Y4.84%
EPS 5Y6.93%
EPS growth Q2Q15.72%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y4.95%
Revenue growth 5Y4.18%
Revenue growth Q2Q3.22%
3.2 Future
Based on estimates for the next years, PG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
The Revenue is expected to grow by 4.38% on average over the next years.
EPS Next Y12.63%
EPS Next 2Y10.22%
EPS Next 3Y9.32%
EPS Next 5Y8.36%
Revenue Next Year4.06%
Revenue Next 2Y3.96%
Revenue Next 3Y4.05%
Revenue Next 5Y4.38%
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 accelerating.
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 24.67.
Compared to the rest of the industry, the Price/Earnings ratio of PG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.76, PG is valued at the same level.
The Price/Forward Earnings ratio is 22.06, which indicates a rather expensive current 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, PG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.67 | ||
| Fwd PE | 22.06 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.25 | ||
| EV/EBITDA | 17.39 |
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.
The excellent profitability rating of PG may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)3.56
EPS Next 2Y10.22%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, PG has a reasonable but not impressive dividend return.
PG's Dividend Yield is a higher than the industry average which is at 2.59.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of PG has a limited annual growth rate of 5.51%.
PG has been paying a dividend for at least 10 years, so it has 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)5.51%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
50.61% of the earnings are spent on dividend by PG. This is a bit on the high side, but may be sustainable.
PG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.61%
EPS Next 2Y10.22%
EPS Next 3Y9.32%
PROCTER & GAMBLE CO/THE
NYSE:PG (4/19/2024, 7:09:47 PM)
After market: 158.13 -0.01 (-0.01%)158.14
+0.85 (+0.54%)
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 Cap372.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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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 | 24.67 | ||
| Fwd PE | 22.06 | ||
| 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)1.95
PEG (5Y)3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 29.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.77% | ||
| PM (TTM) | 17.26% | ||
| GM | 50.36% | ||
| 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 | 0.64 | ||
| Quick Ratio | 0.44 | ||
| 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)
Growth
EPS 1Y (TTM)12.46%
EPS 3Y4.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.55%
Revenue growth 3Y4.95%
Revenue growth 5Y
Revenue growth 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