PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PG - US7427181091 - Common Stock
146.43 USD
+2.19 (+1.52%)
We assign a fundamental rating of 6 out of 10 to PG. 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. While showing a medium growth rate, PG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- PG had positive earnings in the past year.
- In the past year PG had a positive cash flow from operations.
- Each year in the past 5 years PG has been profitable.
- In the past 5 years PG always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 12.91%, PG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- PG has a Return On Equity of 30.92%. This is in the better half of the industry: PG outperforms 66.67% of its industry peers.
- PG's Return On Invested Capital of 18.64% is fine compared to the rest of the industry. PG outperforms 66.67% of its industry peers.
- PG had an Average Return On Invested Capital over the past 3 years of 17.42%. This is above the industry average of 14.87%.
- The 3 year average ROIC (17.42%) for PG is below the current ROIC(18.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 30.92% | ||
| ROIC | 18.64% |
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
- PG has a Profit Margin of 19.39%. This is amongst the best in the industry. PG outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of PG has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 24.66%, PG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- PG's Operating Margin has been stable in the last couple of years.
- PG has a better Gross Margin (51.23%) than 83.33% of its industry peers.
- PG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.66% | ||
| PM (TTM) | 19.39% | ||
| GM | 51.23% |
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
- 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
- An Altman-Z score of 5.28 indicates that PG is not in any danger for bankruptcy at the moment.
- PG's Altman-Z score of 5.28 is fine compared to the rest of the industry. PG outperforms 75.00% of its industry peers.
- The Debt to FCF ratio of PG is 2.41, which is a good value as it means it would take PG, 2.41 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.41, PG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.46 indicates that PG is not too dependend on debt financing.
- PG has a better Debt to Equity ratio (0.46) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.28 |
ROIC/WACC2.22
WACC8.39%
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.
- With a Current ratio value of 0.71, PG is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
- PG has a Quick 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.
- The Quick ratio of PG (0.51) is worse than 83.33% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.99% over the past year.
- The Earnings Per Share has been growing slightly by 5.93% on average over the past years.
- The Revenue has been growing slightly by 1.23% in the past year.
- The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)2.99%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%3.11%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
3.2 Future
- PG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.04% yearly.
- Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.04%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
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 21.25, 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 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, PG is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.29, the valuation of PG can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PG is on the same level as its industry peers.
- PG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 19.29 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PG indicates a slightly more expensive valuation: PG is more expensive than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.9 | ||
| EV/EBITDA | 15.19 |
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)3.92
PEG (5Y)3.58
EPS Next 2Y5.43%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
- PG has a Yearly Dividend Yield of 2.99%.
- Compared to an average industry Dividend Yield of 2.76, PG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, PG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
- The dividend of PG is nicely growing with an annual growth rate of 6.09%!
- 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)6.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- PG pays out 60.57% 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.
DP60.57%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
NYSE:PG (1/14/2026, 2:48:08 PM)
146.43
+2.19 (+1.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)10-24 2025-10-24/bmo
Earnings (Next)01-22 2026-01-22/bmo
Inst Owners70.12%
Inst Owner Change0.17%
Ins Owners0.04%
Ins Owner Change5.46%
Market Cap342.17B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts77.71
Price Target172.1 (17.53%)
Short Float %0.76%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)1.21%
Max EPS beat(2)1.94%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-1.99%
Max EPS beat(4)1.94%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)0.71%
EPS beat(16)7
Avg EPS beat(16)0.04%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.13%
Revenue beat(12)1
Avg Revenue beat(12)-2.39%
Revenue beat(16)3
Avg Revenue beat(16)-1.99%
PT rev (1m)-0.05%
PT rev (3m)-1.6%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 19.29 | ||
| P/S | 4.03 | ||
| P/FCF | 22.9 | ||
| P/OCF | 18.08 | ||
| P/B | 6.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.19 |
EPS(TTM)6.89
EY4.71%
EPS(NY)7.59
Fwd EY5.18%
FCF(TTM)6.4
FCFY4.37%
OCF(TTM)8.1
OCFY5.53%
SpS36.35
BVpS22.8
TBVpS-4.36
PEG (NY)3.92
PEG (5Y)3.58
Graham Number59.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 30.92% | ||
| ROCE | 23.37% | ||
| ROIC | 18.64% | ||
| ROICexc | 21.29% | ||
| ROICexgc | 111.54% | ||
| OM | 24.66% | ||
| PM (TTM) | 19.39% | ||
| GM | 51.23% | ||
| FCFM | 17.6% |
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%
ROICexgc growth 3Y9.9%
ROICexgc 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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 138.19% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.44% | ||
| Profit Quality | 90.74% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 5.28 |
F-Score7
WACC8.39%
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)2.99%
EPS 3Y5.54%
EPS 5Y5.93%
EPS Q2Q%3.11%
EPS Next Y5.41%
EPS Next 2Y5.43%
EPS Next 3Y5.54%
EPS Next 5Y5.04%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.27%
Revenue Next 2Y3.09%
Revenue Next 3Y3.18%
Revenue Next 5Y3.35%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year18.32%
EBIT Next 3Y9.38%
EBIT Next 5Y6.66%
FCF growth 1Y2.48%
FCF growth 3Y1.16%
FCF growth 5Y-0.4%
OCF growth 1Y7.04%
OCF growth 3Y2.13%
OCF growth 5Y0.47%
PROCTER & GAMBLE CO/THE / PG FAQ
Can you provide the ChartMill fundamental rating for PROCTER & GAMBLE CO/THE?
ChartMill assigns a fundamental rating of 6 / 10 to PG.
What is the valuation status of PROCTER & GAMBLE CO/THE (PG) stock?
ChartMill assigns a valuation rating of 2 / 10 to PROCTER & GAMBLE CO/THE (PG). This can be considered as Overvalued.
Can you provide the profitability details for PROCTER & GAMBLE CO/THE?
PROCTER & GAMBLE CO/THE (PG) has a profitability rating of 8 / 10.
How financially healthy is PROCTER & GAMBLE CO/THE?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10.
Is the dividend of PROCTER & GAMBLE CO/THE sustainable?
The dividend rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10 and the dividend payout ratio is 60.57%.