Procter & Gamble Company (PG) AI Stock Analysis

• Market Cap: $388.87B
• Dividend Yield: 2.46%
• Average Volume (3M): 7.96M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.18
• Revenue Growth: -0.16%
• EPS Growth: 2.74%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 75
• Industry: Household & Personal Products
• EPS (TTM): 1.54
• Shares Outstanding: 2,344,542,000
• 10 Day Avg. Volume: 6,979,594
• 30 Day Avg. Volume: 7,958,957
• PEG Ratio: 77.02
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.60
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 4.32
• 1Y Price Target: $170.44
• Price Target Upside: 2.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 76 Outperform
• Price Target: $187.00 ▲( 12.75% Upside)

Procter & Gamble's solid financial performance and strategic initiatives significantly strengthen its position despite technical and valuation challenges. The company's focus on innovation and stable market share, coupled with a positive earnings call and corporate events, contribute to a strong overall outlook.

Positive Factors

Brand strength

P&G's strengths, including superior brand equity, rapid innovation, and robust marketing capabilities, make it an attractive long-term investment despite the current volatile environment.

Cost-saving initiatives

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.

Innovation and pricing

P&G expects to raise prices on innovations, which could help improve future sales.

Negative Factors

Financial guidance

The results were sluggish and the guidance for the fiscal year was cut, which was expected to impact the stock negatively.

Market challenges

Demand softness in developed markets and a value-conscious consumer hinder P&G's ability to take additional pricing.

Tariff impact

Tariff headwinds are expected to impact P&G's earnings, with an estimated impact of $1-1.5bn.

Procter & Gamble Company 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 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 Company Financial Statement Overview

Summary

Procter & Gamble's financial statements indicate robust profitability, effective leverage management, and strong cash generation. The income statement shows strong profitability with stable margins despite a slight revenue decline. The balance sheet reflects strong financial stability with efficient equity utilization. However, a decline in free cash flow growth is notable, but overall, the company's financial position remains strong.

Income Statement

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
83.93B	84.04B	82.01B	80.19B	76.12B	70.95B
	Gross Profit
43.05B	43.19B	39.25B	38.03B	39.01B	35.70B
	EBIT
19.98B	18.55B	18.13B	17.81B	17.99B	15.71B
	EBITDA
23.39B	22.70B	21.82B	21.24B	20.85B	19.31B
	Net Income Common Stockholders
15.49B	14.88B	14.65B	14.74B	14.31B	13.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.12B	9.48B	8.25B	7.21B	10.29B	16.18B
	Total Assets
122.98B	122.37B	120.83B	117.21B	119.31B	120.70B
	Total Debt
34.14B	33.37B	34.61B	31.49B	31.99B	34.72B
	Net Debt
25.02B	23.89B	26.36B	24.28B	21.70B	18.54B
	Total Liabilities
70.44B	71.81B	73.76B	70.35B	72.65B	73.82B
	Stockholders Equity
52.27B	50.29B	46.78B	46.59B	46.38B	46.52B
Cash Flow		Free Cash Flow
15.03B	16.52B	13.79B	13.57B	15.58B	14.33B
	Operating Cash Flow
18.59B	19.85B	16.85B	16.72B	18.37B	17.40B
	Investing Cash Flow
-3.27B	-3.50B	-3.50B	-4.42B	-2.83B	3.04B
	Financing Cash Flow
-12.92B	-14.86B	-12.15B	-14.88B	-21.53B	-8.37B

Procter & Gamble Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 165.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PG, the sentiment is Positive. The current price of 165.86 is above the 20-day moving average (MA) of 161.55, above the 50-day MA of 163.95, and below the 200-day MA of 166.73, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 90.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PG.

Procter & Gamble Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	76 Outperform	$388.87B	26.34	30.29%	2.46%	-0.16%	2.74%
UL	76 Outperform	$158.77B	25.59	30.53%	2.91%	1.99%	-10.59%
KVUE	73 Outperform	$45.56B	43.27	10.22%	3.43%	-1.18%	-29.18%
KMB	70 Outperform	$46.97B	19.29	229.84%	3.48%	-3.12%	34.80%
CL	65 Neutral	$75.04B	26.22	977.07%	2.18%	0.98%	12.12%
Sector *	64 Neutral	$8.82B	14.56	4.78%	173.92%	3.50%	2.20%
CHD	63 Neutral	$23.63B	41.16	13.35%	1.19%	2.18%	-26.08%

Procter & Gamble Company Corporate Events

Procter & Gamble Unveils New Supply Chain Strategy

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.

Procter & Gamble Reports Strong Quarterly Earnings Growth

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.