Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $356.92B
• Dividend Yield: 2.71%
• Average Volume (3M): 6.94M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.17
• Revenue Growth: 0.29%
• EPS Growth: 7.85%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.48
• Shares Outstanding: 2,340,485,400
• 10 Day Avg. Volume: 8,147,709
• 30 Day Avg. Volume: 6,936,322
• PEG Ratio: 3.09
• Price to Book (P/B): 7.48
• Price to Sales (P/S): 4.64
• P/FCF Ratio: 27.84
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 4.94
• Enterprise Value/Gross Profit: 9.65
• Enterprise Value/Ebitda: 19.75
• 1Y Price Target: $174.00
• Price Target Upside: 14.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $176.00 ▲(15.41% Upside)

Procter & Gamble's strong financial performance and resilience in challenging conditions are significant strengths. However, high valuation, macroeconomic challenges, and slowing growth rates temper the overall outlook. The company's strategic focus on restructuring and e-commerce provides potential for future growth.

Positive Factors

Strong Financial Health

P&G's robust financial health, marked by consistent profitability and stable cash flow, ensures long-term operational stability and resilience against economic fluctuations.

E-commerce Growth

The significant growth in e-commerce sales highlights P&G's successful adaptation to digital retail trends, expanding its market reach and customer base.

Product Innovation

P&G's strong performance in product innovation underscores its ability to meet consumer demands and maintain competitive advantage through new offerings.

Negative Factors

Slowing Revenue Growth

The slowing revenue growth rate may indicate challenges in expanding market share, potentially impacting long-term growth prospects if not addressed.

Inventory Reductions

Inventory reductions by retailers can lead to decreased sales and disrupt supply chain efficiency, affecting P&G's ability to meet demand promptly.

Tariff and Currency Headwinds

Tariff and currency headwinds pose risks to cost management and profitability, potentially impacting P&G's global operations and financial performance.

Procter & Gamble Business Overview & Revenue Model

Company Description

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 Beauty segment offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; and antiperspirants and deodorants, personal cleansing, and skin care products under the Olay, Old Spice, Safeguard, Secret, and SK-II brands. The Grooming segment provides shave care products and appliances under the Braun, Gillette, and Venus brand names. The Health Care segment offers toothbrushes, toothpastes, and other oral care products under the Crest and Oral-B brand names; and gastrointestinal, rapid diagnostics, respiratory, vitamins/minerals/supplements, pain relief, and other personal health care products under the Metamucil, Neurobion, Pepto-Bismol, and Vicks brands. The Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents under the Ariel, Downy, Gain, and Tide brands; and air care, dish care, P&G professional, and surface care products under the Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands. The Baby, Feminine & Family Care segment offers baby wipes, taped diapers, and pants under the Luvs and Pampers brands; adult incontinence and feminine care products under the Always, Always Discreet, and Tampax brands; and paper towels, tissues, and toilet papers under the Bounty, Charmin, and Puffs brands. The company sells its products primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, high-frequency stores, pharmacies, electronics stores, and professional channels, as well as directly to consumers. The Procter & Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.

How the Company Makes Money

Procter & Gamble generates revenue primarily through the sale of its consumer goods products across its various sectors. The company operates on a direct-to-consumer model as well as through retail partnerships, including large chains and online platforms. Key revenue streams include sales from personal care products, household cleaning supplies, and health care items. P&G invests significantly in marketing and brand development to maintain a strong presence in the market, which helps drive consumer loyalty and repeat purchases. Additionally, strategic partnerships with retailers and e-commerce platforms enhance distribution and accessibility of its products, further contributing to its earnings.

Procter & Gamble Financial Statement Overview

Summary

Procter & Gamble demonstrates strong financial health with consistent profitability, effective leverage management, and stable cash flow generation. The company maintains robust profit margins and a solid balance sheet, though growth rates have slowed, and free cash flow has declined, warranting attention.

Income Statement

Procter & Gamble has demonstrated consistent revenue growth over the years, with a revenue growth rate of 0.29% in the most recent year, indicating stability in its top-line performance. The company maintains strong profitability metrics, with a gross profit margin of 51.15% and a net profit margin of 18.95% in 2025. The EBIT margin at 24.25% and EBITDA margin at 25.00% further underscore its operational efficiency. However, the growth rate has slowed compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

Procter & Gamble exhibits a solid balance sheet with a debt-to-equity ratio of 0.66, indicating a balanced approach to leverage. The return on equity stands at 30.54%, reflecting efficient use of shareholders' equity to generate profits. The equity ratio of 41.73% shows a healthy proportion of assets funded by equity, enhancing financial stability. Despite the strong metrics, the company should monitor its debt levels, which have slightly increased in absolute terms.

Cash Flow

The company maintains robust cash flow generation, evidenced by the operating cash flow to net income ratio of 1.12, indicating effective cash conversion from profits. The free cash flow to net income ratio is 0.88, showcasing the ability to generate cash after capital expenditures. However, the free cash flow has declined by 15.01% from the previous year, which could impact future flexibility if this trend continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	84.28B	84.28B	84.04B	82.01B	80.19B	76.12B
Gross Profit	43.12B	43.12B	43.19B	39.25B	38.03B	39.01B
EBITDA	21.07B	23.92B	22.58B	21.77B	21.24B	20.85B
Net Income	15.97B	15.97B	14.88B	14.65B	14.74B	14.31B
Balance Sheet
Total Assets	125.23B	125.23B	122.37B	120.83B	117.21B	119.31B
Cash, Cash Equivalents and Short-Term Investments	9.56B	9.56B	9.48B	8.25B	7.21B	10.29B
Total Debt	34.51B	35.46B	33.37B	35.42B	32.29B	32.84B
Total Liabilities	72.95B	72.95B	71.81B	73.76B	70.35B	72.65B
Stockholders Equity	52.01B	52.01B	50.29B	46.78B	46.59B	46.38B
Cash Flow
Free Cash Flow	14.04B	14.04B	16.52B	13.79B	13.57B	15.58B
Operating Cash Flow	17.82B	17.82B	19.85B	16.85B	16.72B	18.37B
Investing Cash Flow	-3.82B	-3.82B	-3.50B	-3.50B	-4.42B	-2.83B
Financing Cash Flow	-14.04B	-14.04B	-14.86B	-12.15B	-14.88B	-21.53B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 152.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PG, the sentiment is Negative. The current price of 152.5 is below the 20-day moving average (MA) of 156.80, below the 50-day MA of 155.96, and below the 200-day MA of 161.41, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PG.

Procter & Gamble Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$356.92B	23.43	31.23%	2.71%	0.29%	7.85%
UL	71 Outperform	$145.26B	24.20	28.73%	3.35%	-0.30%	-14.60%
CL	63 Neutral	$64.33B	22.37	414.39%	2.56%	0.05%	3.55%
KVUE	59 Neutral	$31.51B	22.31	10.65%	5.01%	-2.15%	26.65%
KMB	57 Neutral	$40.55B	16.85	191.19%	4.09%	-6.89%	7.52%
EL	50 Neutral	$31.19B	-27.54	-29.31%	1.62%	-8.14%	-389.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%