Procter & Gamble (PG) Stock Analysis
Here is a fundamental analysis of Procter & Gamble (PG), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: PG | Industry group median |
|---|---|---|
| 1-Year Return | -5.68% | -5.68% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: PG | Industry group median |
|---|---|---|
| 1-Year Volatility | 18.80% | 36.58% |
| Beta | 0.38 | 0.61 |
Company Profile
| Profile Item | PG |
|---|---|
| Name | Procter & Gamble Co |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Household & Personal Products |
| GICS Industry | Household Products |
| GICS Sub-Industry | Household Products |
| Market Capitalization | 348.38 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 2, 1962 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Procter & Gamble (PG) trades at P/E ratio of 21.87, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
PG
Household & Personal Products industry group
21.87
Group distribution
- Max
- 34.67
- Q3
- 24.01
- PG
- 21.87
- Median
- 18.98
- Q1
- 15.21
- Min
- 5.30
Largest peers
- CL
- 34.67
- PG
- 21.87
- KVUE
- 21.60
- KMB
- 19.79
- UL
- 19.71
- HLN
- 18.63
- EL
- --
Price-to-Sales Ratio (TTM)
Procter & Gamble (PG) trades at 4.02 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
PG
Household & Personal Products industry group
4.02
Group distribution
- Max
- 4.71
- PG
- 4.02
- Q3
- 3.01
- Median
- 1.73
- Q1
- 0.71
- Min
- 0.24
Largest peers
- PG
- 4.02
- HLN
- 3.65
- CL
- 3.44
- UL
- 2.53
- KVUE
- 2.28
- EL
- 2.19
- KMB
- 2.05
Price-to-Book Ratio (MRQ)
Procter & Gamble (PG) trades at 6.48 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
PG
Household & Personal Products industry group
6.48
Group distribution
- Max
- 13.74
- Q3
- 6.82
- PG
- 6.48
- Median
- 2.19
- Q1
- 1.22
- Min
- -2.83
Largest peers
- CL
- 494.20
- KMB
- 18.90
- EL
- 8.13
- UL
- 7.17
- PG
- 6.48
- KVUE
- 3.28
- HLN
- 1.85
Valuation at a Glance
| Metric | Current stock: PG | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 21.87 | 18.98 |
| Price-to-Sales Ratio (TTM) | 4.02 | 1.73 |
| Price-to-Book Ratio (MRQ) | 6.48 | 2.19 |
| Free Cash Flow Yield | 3.66% | 5.33% |
Profitability
Return on Equity (TTM)
Procter & Gamble (PG) posts ROE of 31.11%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
PG
Household & Personal Products industry group
31.11%
Group distribution
- Max
- 31.30%
- PG
- 31.11%
- Q3
- 30.96%
- Median
- 15.00%
- Q1
- 1.55%
- Min
- -13.94%
Largest peers
- CL
- 363.58%
- KMB
- 111.73%
- PG
- 31.11%
- UL
- 30.96%
- KVUE
- 15.70%
- HLN
- 10.27%
- EL
- -5.95%
Net Profit Margin (TTM)
Procter & Gamble (PG) keeps 19.16% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
PG
Household & Personal Products industry group
19.16%
Group distribution
- PG
- 19.16%
- Max
- 19.16%
- Q3
- 11.34%
- Median
- 6.79%
- Q1
- 2.51%
- Min
- -9.20%
Largest peers
- PG
- 19.16%
- UL
- 18.75%
- HLN
- 15.11%
- KMB
- 12.80%
- KVUE
- 10.61%
- CL
- 10.04%
- EL
- -1.67%
Operating Profit Margin (TTM)
Procter & Gamble (PG) turns 23.05% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
PG
Household & Personal Products industry group
23.05%
Group distribution
- Max
- 23.17%
- PG
- 23.05%
- Q3
- 19.85%
- Median
- 12.60%
- Q1
- 7.57%
- Min
- -5.14%
Largest peers
- HLN
- 23.17%
- PG
- 23.05%
- KVUE
- 21.62%
- CL
- 20.92%
- UL
- 20.05%
- KMB
- 19.65%
- EL
- 14.93%
Profitability at a Glance
| Metric | Current stock: PG | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 31.11% | 15.00% |
| Return on Assets (TTM) | 10.93% | 6.97% |
| Net Profit Margin (TTM) | 19.16% | 6.79% |
| Operating Profit Margin (TTM) | 23.05% | 12.60% |
| Gross Profit Margin (TTM) | 50.98% | 50.98% |
Financial Strength
Current Ratio (MRQ)
Procter & Gamble (PG) has current ratio of 0.73, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
PG
Household & Personal Products industry group
0.73
Group distribution
- Max
- 6.27
- Q3
- 3.17
- Median
- 2.05
- Q1
- 1.00
- PG
- 0.73
- Min
- 0.73
Largest peers
- EL
- 1.27
- CL
- 1.03
- KVUE
- 0.98
- HLN
- 0.92
- UL
- 0.79
- KMB
- 0.77
- PG
- 0.73
Debt-to-Equity Ratio (MRQ)
Procter & Gamble (PG) has debt-to-equity ratio of 0.68, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
PG
Household & Personal Products industry group
0.68
Group distribution
- Max
- 2.33
- Q3
- 1.61
- Median
- 0.81
- PG
- 0.68
- Q1
- 0.40
- Min
- 0.02
Largest peers
- CL
- 16.41
- KMB
- 3.71
- EL
- 2.33
- UL
- 1.61
- KVUE
- 0.83
- PG
- 0.68
- HLN
- 0.52
Financial Strength at a Glance
| Metric | Current stock: PG | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.73 | 2.05 |
| Debt-to-Equity Ratio (MRQ) | 0.68 | 0.81 |
| Net Debt / EBITDA | 0.99 | 2.14 |
Dividends
Dividend Yield (TTM)
Procter & Gamble (PG) has dividend yield of 2.85%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
PG
Household & Personal Products industry group
2.85%
Group distribution
- Max
- 5.93%
- Q3
- 2.99%
- PG
- 2.85%
- Median
- 1.56%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- KMB
- 5.01%
- KVUE
- 4.58%
- UL
- 3.87%
- PG
- 2.85%
- CL
- 2.37%
- HLN
- 2.11%
- EL
- 1.56%
Dividend Payout Ratio (TTM)
Procter & Gamble (PG) has payout ratio of 61.80%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
PG
Household & Personal Products industry group
61.80%
Group distribution
- Max
- 98.51%
- Q3
- 71.90%
- PG
- 61.80%
- Median
- 37.08%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- EL
- 471.43%
- KVUE
- 98.51%
- KMB
- 97.87%
- CL
- 80.62%
- UL
- 78.60%
- PG
- 61.80%
- HLN
- 37.08%
Dividends at a Glance
| Metric | Current stock: PG | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.85% | 1.56% |
| Dividend Payout Ratio (TTM) | 61.80% | 37.08% |