About Procter & Gamble Company (The)
Procter & Gamble Company (The) (PG) is a Basic Materials company in the Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics industry with a market capitalisation of $350.8B. The stock trades at 21.96x trailing earnings and yields 2.95%.
- Sector
- Basic Materials
- Industry
- Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics
- Market cap
- $350.8B
- P/E ratio
- 21.96
- EPS (TTM)
- $6.62
- Revenue (TTM)
- $87B
- Free cash flow
- $15.1B
- Profit margin
- 18.4%
- Dividend yield
- 2.95%
- Shares outstanding
- 2.3B
Financial health: Fair7/10
5 strengths, 1 concern. Weakest points: current 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: 29.7% (Strong, benchmark > 15%) — Earns 29.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 50.2% (Strong, benchmark > 40%) — Keeps 50.2% 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: 3.3% (Watch, benchmark > 10%) — Revenue changed 3.3% year on year, short of the > 10% mark.
- Earnings growth: 0.4% (Watch, benchmark > 10%) — Earnings changed 0.4% year on year, short of the > 10% mark.
- Payout ratio: 63.8% (Watch, benchmark < 60%) — Pays out 63.8% of earnings as dividends — above the level usually considered sustainable.