About Procter & Gamble Company (The)
The Procter & Gamble Company provides branded consumer packaged goods worldwide. It operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The company offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; antiperspirants, deodorants, and personal cleansing products under the Native, Old Spice, Safeguard, and Secret brands; and facial moisturizers, cleaners, and treatments under the Olay and SK-II brands. It also provides blades, razors, shave products, appliances, and other grooming products under the Braun, Gillette, and Venus brands. In addition, the company offers toothbrushes, toothpastes, and other oral care products under the Crest and Oral-B brands; and gastrointestinal, pain relief, rapid diagnostics, respiratory, vitamins/minerals/supplements, and other personal health care products under the Metamucil, Neurobion, Pepto-Bismol, and Vicks brands. Further, it provides fabric enhancers, and laundry additives and detergents under the Ariel, Downy, Gain, and Tide brands; and air and dish care, P&G professional, and surface care under the Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands. Additionally, the company offers baby wipes, taped diapers, and pants under the Luvs and Pampers brands; adult incontinence and menstrual care products under the Always, Always Discreet, and Tampax brands; and paper towels, tissues, and toilet papers under the Bounty, Charmin, and Puffs brands. It sells its products through mass merchandisers, social ecommerce channels, grocery and specialty beauty stores, membership club stores, drug and department stores, distributors, wholesalers, airport duty-free and high-frequency stores, pharmacies, electronics stores, and professional channels, as well as directly to consumers. The company was founded in 1837 and is headquartered in Cincinnati, Ohio.
Procter & Gamble Company (The) (PG) is a Consumer Defensive company in the Household & Personal Products industry with a market capitalisation of $337.4B. The stock trades at 21.94x trailing earnings and yields 3.05%.
- Sector
- Consumer Defensive
- Industry
- Household & Personal Products
- Market cap
- $337.4B
- P/E ratio
- 21.94
- Forward P/E
- 19.63
- EPS (TTM)
- $6.62
- Revenue (TTM)
- $87B
- Free cash flow
- $13.3B
- Profit margin
- 18.4%
- Dividend yield
- 3.05%
- Beta
- 0.38
- Shares outstanding
- 2.3B
Financial health: Fair5.9/10
5 strengths, 3 concerns. Weakest points: current ratio, earnings growth, peg ratio.
- Debt to equity: 0.54 (Watch, benchmark < 0.5) — Debt of 0.54x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 1.3y (Strong, benchmark < 4 years) — Net debt of $19.4B is 1.3x annual free cash flow — about a year of cash flow to repay.
- Current ratio: 0.68 (Concern, benchmark > 1.5) — Short-term assets cover only 0.68x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: 30.3% (Strong, benchmark > 15%) — Earns 30.3% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 50.9% (Strong, benchmark > 40%) — Keeps 50.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 18.4% (Strong, benchmark > 10%) — Turns 18.4% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $15.1B (Strong, benchmark positive) — Generated $15.1B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 1.5% (Watch, benchmark > 10%) — Revenue changed 1.5% year on year, short of the > 10% mark.
- Earnings growth: -15.5% (Concern, benchmark > 10%) — Earnings changed -15.5% year on year, well short of the > 10% mark.
- PEG ratio: 3.72 (Concern, benchmark < 1) — At 3.72, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 64.3% (Watch, benchmark < 60%) — Pays out 64.3% of earnings as dividends — above the level usually considered sustainable.