PROCTER & GAMBLE CO/THE (PG) Stock Fundamental Analysis
USA - NYSE:PG - US7427181091 - Common Stock
147.67 USD
-0.29 (-0.2%)
147.7 USD
+0.03 (+0.02%)
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. While PG belongs to the best of the industry regarding profitability, 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
PG had positive earnings in the past year.
PG had a positive operating cash flow in the past year.
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
PG's Return On Assets of 12.91% is fine compared to the rest of the industry. PG outperforms 66.67% of its industry peers.
PG has a better Return On Equity (30.92%) than 66.67% of its industry peers.
PG has a Return On Invested Capital of 18.64%. This is in the better half 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 above the industry average of 14.82%.
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
Looking at the Profit Margin, with a value of 19.39%, 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.
PG has a Operating Margin of 24.66%. 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.
The Gross Margin of PG (51.23%) is better 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.
PG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PG has been reduced compared to 5 years ago.
Compared to 1 year ago, PG has a worse debt to assets ratio.
2.2 Solvency
PG has an Altman-Z score of 5.35. This indicates that PG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.35, PG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
PG has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as PG would need 2.41 years to pay back of all of its debts.
PG has a Debt to FCF ratio of 2.41. This is in the better half of the industry: PG outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that PG is not too dependend on debt financing.
The Debt to Equity ratio of PG (0.46) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.35 |
ROIC/WACC2.23
WACC8.36%
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.
PG's Current ratio of 0.71 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 0.51 indicates that PG may have some problems paying 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.
PG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
PG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.23%.
Measured over the past years, PG shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
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
The Earnings Per Share is expected to grow by 5.21% on average over the next years.
Based on estimates for the next years, PG will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y5.59%
EPS Next 2Y5.71%
EPS Next 3Y5.55%
EPS Next 5Y5.21%
Revenue Next Year3.35%
Revenue Next 2Y3.18%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.43, the valuation of PG can be described as rather expensive.
75.00% of the companies in the same industry are cheaper than PG, based on the Price/Earnings ratio.
PG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 19.35, PG is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as PG.
PG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PG indicates a slightly more expensive valuation: PG is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PG is valued more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.13 | ||
| EV/EBITDA | 15.55 |
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)3.83
PEG (5Y)3.61
EPS Next 2Y5.71%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
PG has a Yearly Dividend Yield of 2.86%.
Compared to an average industry Dividend Yield of 3.16, PG has a dividend in line with its industry peers.
PG's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of PG is nicely growing with an annual growth rate of 6.09%!
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 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 2Y5.71%
EPS Next 3Y5.55%
147.67
-0.29 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners70.15%
Inst Owner Change-3.81%
Ins Owners0.04%
Ins Owner Change11.3%
Market Cap345.62B
Revenue(TTM)84.93B
Net Income(TTM)16.47B
Analysts76.57
Price Target171.75 (16.31%)
Short Float %0.72%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend4.2
Dividend Growth(5Y)6.09%
DP60.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-1.8%
PT rev (3m)-1.94%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 19.35 | ||
| P/S | 4.07 | ||
| P/FCF | 23.13 | ||
| P/OCF | 18.26 | ||
| P/B | 6.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.55 |
EPS(TTM)6.89
EY4.67%
EPS(NY)7.63
Fwd EY5.17%
FCF(TTM)6.39
FCFY4.32%
OCF(TTM)8.09
OCFY5.48%
SpS36.29
BVpS22.76
TBVpS-4.35
PEG (NY)3.83
PEG (5Y)3.61
Graham Number59.4
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 | 5.35 |
F-Score7
WACC8.36%
ROIC/WACC2.23
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 Y5.59%
EPS Next 2Y5.71%
EPS Next 3Y5.55%
EPS Next 5Y5.21%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y1.67%
Revenue growth 5Y3.5%
Sales Q2Q%2.99%
Revenue Next Year3.35%
Revenue Next 2Y3.18%
Revenue Next 3Y3.18%
Revenue Next 5Y3.37%
EBIT growth 1Y3.05%
EBIT growth 3Y4.77%
EBIT growth 5Y4.76%
EBIT Next Year19.07%
EBIT Next 3Y9.11%
EBIT Next 5Y6.81%
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.
Can you provide the valuation status for PROCTER & GAMBLE CO/THE?
ChartMill assigns a valuation rating of 2 / 10 to PROCTER & GAMBLE CO/THE (PG). This can be considered as Overvalued.
What is the profitability of PG stock?
PROCTER & GAMBLE CO/THE (PG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PROCTER & GAMBLE CO/THE (PG) stock?
The Price/Earnings (PE) ratio for PROCTER & GAMBLE CO/THE (PG) is 21.43 and the Price/Book (PB) ratio is 6.49.
Can you provide the financial health for PG stock?
The financial health rating of PROCTER & GAMBLE CO/THE (PG) is 6 / 10.