Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $337.56B
• Dividend Yield: 2.89%
• Average Volume (3M): 10.49M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.15
• Revenue Growth: 1.23%
• EPS Growth: 17.97%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.99
• Shares Outstanding: 2,336,733,600
• 10 Day Avg. Volume: 12,914,845
• 30 Day Avg. Volume: 10,486,193
• PEG Ratio: 3.09
• Price to Book (P/B): 7.52
• Price to Sales (P/S): 4.64
• P/FCF Ratio: 27.84
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 4.71
• Enterprise Value/Gross Profit: 9.24
• Enterprise Value/Ebitda: 16.13
• 1Y Price Target: $169.36
• Price Target Upside: 17.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 6.99
• Revenue Forecast (FY): $86.95B

• Rating: 69 Neutral
• Price Target: $152.00 ▲(5.22% Upside)

Procter & Gamble's overall stock score is driven by its strong financial performance and positive corporate events, which are offset by bearish technical indicators and valuation concerns. The earnings call highlighted strategic strengths but also pointed to market share challenges and restructuring efforts. The company's solid dividend yield provides some support to the valuation.

Positive Factors

Consistent Revenue Growth

Procter & Gamble's ability to consistently grow organic sales over 40 quarters showcases its strong market position and effective business strategies, indicating long-term growth potential.

Strong Cash Flow Management

Efficient cash flow management allows Procter & Gamble to reinvest in growth opportunities, maintain dividend payments, and enhance shareholder value, supporting long-term financial health.

Financial Flexibility

Procter & Gamble's ability to raise significant capital through public offerings enhances its financial flexibility, supporting strategic initiatives and strengthening its market position.

Negative Factors

Global Market Share Decline

A decline in global market share suggests increasing competition and potential challenges in maintaining dominance, which could impact long-term revenue growth and market positioning.

Challenges in North America

Decelerating consumption and competitive pressures in North America may hinder Procter & Gamble's growth prospects in a key market, affecting overall performance.

Restructuring and Job Reductions

While aimed at improving productivity, significant job reductions could disrupt operations and employee morale, potentially impacting innovation and long-term growth.

Procter & Gamble Business Overview & Revenue Model

Company Description

Procter & Gamble (PG) is a multinational consumer goods corporation headquartered in Cincinnati, Ohio. Founded in 1837, the company operates in multiple sectors, including beauty, grooming, health care, fabric and home care, and baby, feminine, and family care. Procter & Gamble is known for its wide range of well-recognized brands such as Tide, Pampers, Gillette, Head & Shoulders, and Crest, which cater to everyday consumer needs across the globe.

How the Company Makes Money

Procter & Gamble generates revenue primarily through the sale of its consumer products across various categories. The company employs a revenue model based on direct sales to retailers and distributors, as well as online sales through e-commerce platforms. Key revenue streams include sales from personal care products, household cleaning items, and health care products. Procter & Gamble also benefits from brand loyalty and premium pricing on its established brands, which allows for significant profit margins. Additionally, the company engages in strategic partnerships with retailers and distributors to enhance market penetration and improve product availability. Factors contributing to its earnings include effective marketing strategies, innovation in product development, and a strong supply chain management system.

Procter & Gamble Financial Statement Overview

Summary

Procter & Gamble demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. However, the slowing growth rate and slight increase in debt levels warrant 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	84.93B	84.28B	84.04B	82.01B	80.19B	76.12B
Gross Profit	43.30B	43.12B	43.19B	39.25B	38.03B	39.01B
EBITDA	24.81B	23.92B	22.58B	21.77B	21.24B	20.85B
Net Income	16.77B	15.97B	14.88B	14.65B	14.74B	14.31B
Balance Sheet
Total Assets	127.60B	125.23B	122.37B	120.83B	117.21B	119.31B
Cash, Cash Equivalents and Short-Term Investments	11.17B	9.56B	9.48B	8.25B	7.21B	10.29B
Total Debt	35.95B	35.46B	33.37B	35.42B	32.29B	32.84B
Total Liabilities	74.05B	72.95B	71.81B	73.76B	70.35B	72.65B
Stockholders Equity	53.55B	52.01B	50.29B	46.78B	46.59B	46.38B
Cash Flow
Free Cash Flow	14.94B	14.04B	16.52B	13.79B	13.57B	15.58B
Operating Cash Flow	18.92B	17.82B	19.85B	16.85B	16.72B	18.37B
Investing Cash Flow	-4.25B	-3.82B	-3.50B	-3.50B	-4.42B	-2.83B
Financing Cash Flow	-15.64B	-14.04B	-14.86B	-12.15B	-14.88B	-21.53B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 144.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 144.46 is below the 20-day moving average (MA) of 145.06, below the 50-day MA of 147.15, and below the 200-day MA of 155.55, indicating a bearish trend. The MACD of -0.84 indicates Negative momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 74.38 is Neutral, 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
UL	73 Outperform	$142.90B	23.62	28.36%	3.77%	-0.30%	-14.60%
KVUE	73 Outperform	$32.61B	22.88	13.47%	4.85%	-2.94%	34.54%
PG	69 Neutral	$337.56B	21.09	31.90%	2.89%	1.23%	17.97%
CL	63 Neutral	$63.16B	21.96	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$33.40B	17.05	136.87%	5.01%	-10.04%	-23.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	56 Neutral	$38.92B	-41.81	-20.73%	1.30%	-6.36%	-554.84%

Procter & Gamble Corporate Events

Procter & Gamble Announces Health Care CEO Retirement

On December 9, 2025, Procter & Gamble announced that Jennifer Davis, the current Chief Executive Officer of their Health Care division, will retire on June 30, 2026, after over 33 years with the company. Her departure marks a significant transition for the company, potentially impacting its leadership dynamics and strategic direction within the health care sector.

Procter & Gamble Completes $258M Floating Rate Notes Offering

On November 4, 2025, Procter & Gamble successfully completed a public offering of $258,889,000 in Floating Rate Notes due in 2075. This financial move is part of the company’s strategic efforts to manage its long-term debt and strengthen its financial position, potentially impacting its market standing and stakeholder interests.

Procter & Gamble Raises €1 Billion in Offering

On November 3, 2025, Procter & Gamble successfully closed a significant underwritten public offering, raising €1 billion through notes due in 2033 and 2045, and $1.25 billion through notes due in 2032 and 2035. This strategic financial move is likely to impact the company’s funding capabilities and market positioning, potentially enhancing its operational flexibility and stakeholder confidence.

Procter & Gamble Reports Q1 FY 2026 Results

Procter & Gamble reported its Q1 FY 2026 results, highlighting a 2% growth in organic sales driven by pricing and mix, despite a challenging geopolitical and competitive environment. The company achieved a 3% increase in core earnings per share, with productivity savings partially offsetting tariff costs and negative category mix. While some segments experienced a decrease in value share, others like Global Personal Care saw slight increases. The company also provided guidance for FY 2026, projecting organic sales growth between 0% to 4% and core EPS growth from 0% to 4%, while acknowledging potential headwinds such as commodity cost increases and geopolitical disruptions.

Procter & Gamble Declares Quarterly Dividend at Shareholder Meeting

On October 14, 2025, Procter & Gamble announced at its Annual Meeting of Shareholders that the Board of Directors declared a quarterly dividend of $1.0568 per share, continuing its 135-year tradition of dividend payments and 69 consecutive years of dividend increases. Additionally, all 14 director nominees were elected, and shareholders approved several board proposals, including the ratification of the independent accounting firm and the 2025 Stock and Incentive Compensation Plan, while rejecting a proposal for additional reporting on flexible plastic packaging.