Procter & Gamble (PG)
NYSE:PG
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Procter & Gamble
(NYSE:PG)
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Rating:74Outperform
Price Target:
$187.00
▲(30.66% Upside)
Action:ReiteratedDate:01/23/26
The score is driven primarily by PG’s strong profitability and returns on equity, supported by maintained guidance and continued shareholder returns. The rating is tempered by weakening recent free-cash-flow momentum, mixed technical setup (below the 200-day average and stretched oscillators), and a valuation that is reasonable but not clearly discounted.
Positive Factors
High Profitability & ROE
Sustained high margins and a ~32% ROE indicate durable pricing power, efficient cost structure and strong returns on invested capital. This underpins long-term cash generation, funds reinvestment and supports ongoing shareholder distributions even through moderate top-line cycles.
Negative Factors
Weakening Free Cash Flow Momentum
A steep TTM decline in free cash flow and weaker cash conversion reduce internal funding capacity for buybacks, capex and resilience to cost shocks. If cash-generation recovery lags, the company may face trade-offs between returns, reinvestment and debt management over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & ROE
Sustained high margins and a ~32% ROE indicate durable pricing power, efficient cost structure and strong returns on invested capital. This underpins long-term cash generation, funds reinvestment and supports ongoing shareholder distributions even through moderate top-line cycles.
Read all positive factors
Procter & Gamble (PG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$332.61B
Dividend Yield2.92%
Average Volume (3M)11.05M
Price to Earnings (P/E)20.1
Beta (1Y)0.19
Revenue Growth1.23%
EPS Growth17.97%
CountryUS
Employees108,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.88
Shares Outstanding2,324,000,700
10 Day Avg. Volume14,133,323
30 Day Avg. Volume11,053,705
Financial Highlights & Ratios
PEG Ratio3.09
Price to Book (P/B)7.52
Price to Sales (P/S)4.64
P/FCF Ratio27.84
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue4.21
Enterprise Value/Gross Profit8.32
Enterprise Value/Ebitda15.22
Forecast
1Y Price Target
$165.18Price Target Upside15.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)6.96
Revenue Forecast (FY)$86.68B
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, shampo...
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 p...
Procter & Gamble Key Performance Indicators (KPIs)
Any
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.
Shows sales performance across various divisions, indicating which areas are growing or declining and how the company is diversifying its revenue streams.
Data provided by:
The Fly
The FlyProcter & Gamble Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral — The call presented a mix of encouraging operational and regional wins (strong productivity, meaningful innovation successes in China, Mexico and Latin America, and maintained guidance) alongside clear near-term challenges (U.S. weakness, family care decline, margin compression and market share pressure). Management expressed confidence in back-half recovery and multi-year investments in data, AI and supply chain, but the company still faces notable execution and macro risks that temper upside in the near term.Positive Updates
Stable Organic Sales with Mixed Volume/Pricing
Organic sales were in line with the prior year (0%); volume declined ~1 percentage point while pricing added ~1 point and mix was flat for the quarter.
Negative Updates
North America Weakness and Inventory Headwinds
North America organic sales down ~2%; volume down ~3 points (including roughly a ~2-point headwind from prior-period trade inventory effects). Management pointed to US as the primary drag and emphasized it as an area requiring faster execution.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Organic Sales with Mixed Volume/Pricing
Organic sales were in line with the prior year (0%); volume declined ~1 percentage point while pricing added ~1 point and mix was flat for the quarter.
Read all positive updates
Company Guidance
The company said it is maintaining fiscal 2026 guidance, targeting organic sales growth of in line to +4% (with global market growth for its portfolio ~2% value), core EPS growth of in line to +4% (implying a core EPS range of $6.83–$7.09 per share), and adjusted free cash flow productivity of 85%–90%; this guidance assumes commodity costs roughly in line with last year, includes a 30–50 basis point headwind from product/market exits, a foreign‑exchange tailwind of roughly $200 million after tax, about $500 million before tax of higher tariff costs, modestly higher interest expense, and a core effective tax rate of 20%–21% (combined ~ $250 million after‑tax headwind to earnings); the plan factors in increased capital spending to add capacity and calls for returning roughly $15 billion to shareholders in FY26 (about $10 billion in dividends and $5 billion in share repurchases).Procter & Gamble Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 85.26B | 84.28B | 84.04B | 82.01B | 80.19B | 76.12B |
| Gross Profit | 43.21B | 43.12B | 43.19B | 39.25B | 38.03B | 39.01B |
| EBITDA | 23.62B | 23.92B | 22.58B | 21.77B | 21.24B | 20.85B |
| Net Income | 16.47B | 15.97B | 14.88B | 14.65B | 14.74B | 14.31B |
Balance Sheet | ||||||
| Total Assets | 127.29B | 125.23B | 122.37B | 120.83B | 117.21B | 119.31B |
| Cash, Cash Equivalents and Short-Term Investments | 10.82B | 9.56B | 9.48B | 8.25B | 7.21B | 10.29B |
| Total Debt | 36.64B | 35.46B | 33.37B | 35.42B | 32.29B | 32.84B |
| Total Liabilities | 73.97B | 72.95B | 71.81B | 73.76B | 70.35B | 72.65B |
| Stockholders Equity | 53.32B | 52.01B | 50.29B | 46.78B | 46.59B | 46.38B |
Cash Flow | ||||||
| Free Cash Flow | 14.85B | 14.04B | 16.52B | 13.79B | 13.57B | 15.58B |
| Operating Cash Flow | 19.07B | 17.82B | 19.85B | 16.85B | 16.72B | 18.37B |
| Investing Cash Flow | -4.55B | -3.82B | -3.50B | -3.50B | -4.42B | -2.83B |
| Financing Cash Flow | -14.16B | -14.04B | -14.86B | -12.15B | -14.88B | -21.53B |
Procter & Gamble Technical Analysis
Negative
143.12
Price Trends
153.48
Negative
148.64
Negative
150.61
Negative
Market Momentum
-3.27
Positive
34.18
Neutral
40.77
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 143.12 is below the 20-day moving average (MA) of 147.57, below the 50-day MA of 153.48, and below the 200-day MA of 150.61, indicating a bearish trend. The MACD of -3.27 indicates Positive momentum. The RSI at 34.18 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PG.
Procter & Gamble Risk Analysis
Procter & Gamble disclosed 19 risk factors in its most recent earnings report. Procter & Gamble reported the most risks in the "Production" 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $332.61B | 20.05 | 31.23% | 2.92% | 1.23% | 17.97% | |
69 Neutral | $120.33B | 12.84 | 26.01% | 3.74% | -0.30% | -14.60% | |
68 Neutral | $32.85B | 22.42 | 13.94% | 4.85% | -2.94% | 34.54% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $68.24B | -429.64 | 431.59% | 2.67% | -0.05% | 2.49% | |
61 Neutral | $31.91B | 16.63 | 155.28% | 5.03% | -10.04% | -23.41% | |
47 Neutral | $25.00B | 58.52 | -4.41% | 1.30% | -6.36% | -554.84% |
* Consumer Defensive Sector Average
PG
Procter & Gamble
143.12
-12.83
-8.23%
CL
Colgate-Palmolive
85.14
-1.91
-2.19%
EL
The Estée Lauder Companies
69.12
17.00
32.62%
KMB
Kimberly Clark
96.13
-32.68
-25.37%
UL
Unilever
55.45
-4.57
-7.61%
KVUE
Kenvue, Inc.
17.14
-3.73
-17.88%
Procter & Gamble Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Procter & Gamble Posts Flat Q2 Results, Maintains 2026 Outlook
Neutral
Jan 22, 2026
Procter Gamble reported second-quarter fiscal 2026 results on January 22, 2026, that were broadly flat year-on-year, as base-period dynamics and soft underlying market trends weighed on performance. Organic sales were unchanged, with 1% pricing g...
Dividends
Procter & Gamble Declares Quarterly Dividend, Extending Streak
Positive
Jan 13, 2026
On January 13, 2026, Procter Gamble’s board declared a quarterly dividend of $1.0568 per share on its common stock and Series A and Series B ESOP Convertible Class A preferred shares, payable on or after February 17, 2026 to shareholders of...
Executive/Board Changes
Procter & Gamble Announces Health Care CEO Retirement
Neutral
Dec 15, 2025
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...
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.