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Procter & Gamble (PG)
NYSE:PG

Procter & Gamble (PG) AI Stock Analysis

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PG

Procter & Gamble

(NYSE:PG)

Rating:74Outperform
Price Target:
$182.00
â–²(13.16%Upside)
Procter & Gamble's stock score is supported by its strong financial performance and strategic initiatives. While technical indicators and valuation raise some concerns, the company's focus on innovation and stable dividend growth provide a favorable outlook.
Positive Factors
Cost Savings
P&G continues to implement comprehensive cost-saving initiatives and operational improvements to support earnings, providing flexibility to reinvest in growth initiatives and support market share gains.
Operational Performance
Procter is gaining market share among the 'big 3,' particularly Walmart and Costco, creating strategic opportunities and supporting the case for rerating PG shares.
Sales Growth
A mid-quarter read points to a potential upside in sales as better price-mix drives a sequential improvement in U.S. retail sales.
Negative Factors
Demand Softness
Demand softness in developed markets and a value-conscious consumer hinder P&G's ability to take additional pricing.
Sales Outlook
Procter & Gamble cut FY25 EPS guidance, reflecting weaker performance in a difficult industry environment and incremental tariffs.
Tariff Impact
Tariffs on raw materials from China alongside Canadian headwinds hinder P&G's ability to expand margins in F26.

Procter & Gamble (PG) vs. SPDR S&P 500 ETF (SPY)

Procter & Gamble Business Overview & Revenue Model

Company DescriptionThe 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 MoneyProcter & Gamble makes money through the sale of a diverse range of consumer goods products across multiple categories. The company's revenue model is primarily based on the volume of products sold under its various brand names. Key revenue streams include the beauty segment, which encompasses hair care and skin care products; the grooming segment, which includes shaving products and appliances; the health care segment, offering oral care and personal health products; the fabric and home care segment, which consists of laundry detergents and cleaning products; and the baby, feminine, and family care segment, which features diapers, wipes, and paper products. P&G's earnings are significantly supported by its global distribution network, strategic marketing initiatives, and continuous product innovation. The company also benefits from economies of scale and strong brand recognition, which contribute to its competitive advantage in the consumer goods market.

Procter & Gamble Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows sales performance across various divisions, indicating which areas are growing or declining and how the company is diversifying its revenue streams.
Chart InsightsProcter & Gamble's Fabric and Homecare segment shows steady growth, reflecting strong demand resilience. However, the Baby, Feminine, and Familycare segment faces volatility, likely due to slowing consumer demand in key markets like the US and Europe. Despite these challenges, the company remains committed to innovation and market expansion, as highlighted by new product launches in the Beauty and Healthcare segments. The earnings call underscores a cautious outlook with macroeconomic headwinds, yet emphasizes strategic investments and dividend growth as key pillars for sustained performance.
Data provided by:Main Street Data

Procter & Gamble Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q3-2025)
|
% Change Since: -2.96%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautious outlook with several challenges such as slowing consumer demand in key markets, headwinds from currency and commodity costs, and geopolitical tensions. However, there are positive signs with consistent market share performance, strong innovation pipelines, and robust growth in Latin America. The company's commitment to innovation and dividend growth provides a balanced perspective amidst a volatile environment.
Q3-2025 Updates
Positive Updates
Organic Sales Growth
Organic sales for the quarter grew 1%, with volume and mix in line with the prior year and pricing adding one point to organic sales growth.
Encouraging Market Share Trends
Market share held up well within the quarter, and private label shares in both the US and Europe continue to trend downwards.
Innovation and Market Expansion
Notable innovations include Crest 3D White Deep Stain Remover and Oral-B iO10 and iO2 toothbrushes, which have driven market share growth.
Dividend Increase
Procter & Gamble announced a 5% increase in their dividend, marking the 69th consecutive annual dividend increase.
Strong Performance in Latin America
Latin America delivered 6% organic sales growth despite difficult consumer dynamics in Mexico.
Negative Updates
Slowing Consumer Demand in Key Markets
Consumer and retail volatility heavily impacted top and bottom lines in the US and Europe, with organic sales growth in North America slowing to 1% from a 4% trend.
Challenges in France and China
France faced significant headwinds with organic sales down high teens, while China saw a 2% decline in organic sales.
Currency and Commodity Cost Headwinds
The company faces a $200 million headwind from commodity costs and a similar amount from currency impacts after tax.
Middle East Tensions
Tensions in the Middle East have continued to put pressure on markets and US brands.
Retail Inventory Destocking
The US market experienced retail inventory destocking, which contributed to a slowdown in consumer takeaway.
Company Guidance
In the fiscal 2025 guidance provided by The Procter & Gamble Company, CFO Andre Schulten highlighted an expected organic sales growth of approximately 2% for the fiscal year, with fourth-quarter growth anticipated to be between 0.5% and 4.5%. The core EPS forecast is set at $6.72 to $6.82 per share, indicating an increase of 2% to 4% from the previous year. Despite challenging market conditions, the company plans to maintain robust investment levels in innovation and brand superiority, supported by a forecasted 90% adjusted free cash flow productivity. The company returned $3.8 billion to shareholders in the third quarter and plans to return $16 to $17 billion over the fiscal year. Additionally, a headwind of approximately $200 million from commodity costs and foreign exchange rates, along with a $100 to $160 million impact from tariffs in Q4, is anticipated. The guidance underscores Procter & Gamble's strategic focus on productivity improvements and innovation to navigate through macroeconomic volatility and deliver sustained growth.

Procter & Gamble Financial Statement Overview

Summary
Procter & Gamble demonstrates robust profitability with strong profit margins and effective leverage management. Despite a slight revenue decline and a decrease in free cash flow growth, the company's financial position remains strong with stable EBIT and EBITDA margins and efficient equity utilization.
Income Statement
85
Very Positive
Procter & Gamble shows strong profitability with a Gross Profit Margin of 62.83% and a Net Profit Margin of 18.46% for TTM (Trailing-Twelve-Months). Despite a slight revenue decline of 0.13% compared to the previous year, the company maintains stable EBIT and EBITDA margins at 23.81% and 26.67%, respectively. Overall, these metrics indicate solid financial performance and profitability resilience in the current market.
Balance Sheet
80
Positive
The balance sheet reflects a healthy financial position with a Debt-to-Equity Ratio of 0.65, suggesting effective leverage management. The Return on Equity (ROE) stands at 29.49%, highlighting efficient utilization of shareholders' equity. An Equity Ratio of 42.72% further supports the company's stable capital structure. The metrics suggest strong financial stability and efficient equity utilization, though vigilance on debt levels is prudent.
Cash Flow
78
Positive
Cash flow analysis reveals a Free Cash Flow Growth Rate of -9.07%, indicating a decrease from the previous year. Nonetheless, the Operating Cash Flow to Net Income Ratio is a robust 1.20, and the Free Cash Flow to Net Income Ratio is 0.97, underscoring strong cash generation relative to net income. While cash flow generation remains solid, the decline in free cash flow growth warrants attention.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue83.93B84.04B82.01B80.19B76.12B70.95B
Gross Profit43.05B43.19B39.25B38.03B39.01B35.70B
EBITDA23.39B22.70B21.77B21.24B20.85B19.31B
Net Income15.49B14.88B14.65B14.74B14.31B13.03B
Balance Sheet
Total Assets122.98B122.37B120.83B117.21B119.31B120.70B
Cash, Cash Equivalents and Short-Term Investments9.12B9.48B8.25B7.21B10.29B16.18B
Total Debt34.14B33.37B35.42B32.29B32.84B35.61B
Total Liabilities70.44B71.81B73.76B70.35B72.65B73.82B
Stockholders Equity52.27B50.29B46.78B46.59B46.38B46.52B
Cash Flow
Free Cash Flow15.03B16.52B13.79B13.57B15.58B14.33B
Operating Cash Flow18.59B19.85B16.85B16.72B18.37B17.40B
Investing Cash Flow-3.27B-3.50B-3.50B-4.42B-2.83B3.04B
Financing Cash Flow-12.92B-14.86B-12.15B-14.88B-21.53B-8.37B

Procter & Gamble Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price160.83
Price Trends
50DMA
162.14
Negative
100DMA
164.94
Negative
200DMA
165.97
Negative
Market Momentum
MACD
-0.87
Negative
RSI
47.80
Neutral
STOCH
73.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PG, the sentiment is Neutral. The current price of 160.83 is above the 20-day moving average (MA) of 160.79, below the 50-day MA of 162.14, and below the 200-day MA of 165.97, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 73.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PG.

Procter & Gamble Risk Analysis

Procter & Gamble disclosed 20 risk factors in its most recent earnings report. Procter & Gamble reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Procter & Gamble Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PGPG
74
Outperform
$377.07B25.5430.29%2.63%-0.16%2.74%
ULUL
71
Outperform
$150.70B24.6230.53%3.39%1.99%-10.59%
CHCHD
69
Neutral
$24.24B42.2213.35%1.20%2.18%-26.08%
KMKMB
68
Neutral
$43.84B18.01229.84%3.81%-3.12%34.80%
68
Neutral
$40.41B38.3810.22%3.90%-1.18%-29.18%
65
Neutral
$27.34B15.36-4.01%3.14%1.00%1.98%
CLCL
64
Neutral
$75.19B26.27977.07%2.24%0.98%12.12%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PG
Procter & Gamble
160.83
-1.72
-1.06%
CHD
Church & Dwight
98.41
-5.97
-5.72%
CL
Colgate-Palmolive
92.78
-2.74
-2.87%
KMB
Kimberly Clark
132.12
-2.32
-1.73%
UL
Unilever
61.37
7.31
13.52%
KVUE
Kenvue, Inc.
21.05
3.46
19.67%

Procter & Gamble Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Procter & Gamble Appoints Craig Arnold to Board
Positive
Jun 9, 2025

On June 9, 2025, Procter & Gamble appointed Craig Arnold, former Chairman and CEO of Eaton Corporation, to its Board of Directors. Arnold’s extensive experience in global enterprise management and innovation, particularly in renewable energy and digital technologies, is expected to enhance P&G’s strategic direction and market growth.

The most recent analyst rating on (PG) stock is a Buy with a $174.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.

Business Operations and Strategy
Procter & Gamble Unveils New Supply Chain Strategy
Positive
Apr 24, 2025

Procter & Gamble announced a significant strategic initiative aimed at enhancing its operational efficiency and market competitiveness. The company revealed plans to streamline its supply chain processes, which is expected to bolster its position in the consumer goods industry by reducing costs and improving product delivery times.

Business Operations and StrategyFinancial Disclosures
Procter & Gamble Reports Strong Quarterly Earnings Growth
Positive
Apr 8, 2025

Procter & Gamble announced its quarterly earnings, revealing a significant increase in net sales driven by strong consumer demand across its product categories. The company’s strategic focus on innovation and premium product offerings has bolstered its market position, leading to improved financial performance and positive outlooks for stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 10, 2025