Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $374.83B
• Dividend Yield: 2.58%
• Average Volume (3M): 7.03M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.18
• Revenue Growth: 0.29%
• EPS Growth: 7.85%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): 1.48
• Shares Outstanding: 2,342,371,600
• 10 Day Avg. Volume: 5,894,432
• 30 Day Avg. Volume: 7,030,096
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 9.67
• Enterprise Value/Ebitda: 17.86
• 1Y Price Target: $173.00
• Price Target Upside: 8.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $179.00 ▲(11.86% Upside)

Procter & Gamble's overall stock score reflects its strong financial performance and resilience in challenging conditions. The company's strategic focus on innovation and shareholder returns, along with its stable cash flow and profitability, are significant strengths. However, high valuation and external challenges like tariffs and market competition pose risks.

Positive Factors

Market Share

Procter is gaining market share among the 'big 3,' particularly Walmart and Costco, creating strategic opportunities and supporting the case for rerating PG shares.

Restructuring Benefits

The company lowered its expectation of gross tariff headwinds to about $600M in FY26 from previous estimates of $1-1.5B, indicating a better outlook on tariff impacts.

Sales Performance

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

Economic Challenges

Outgoing CEO Jon Moeller said that the business has never faced more challenges than it faces today and that uncertainties on tariffs, curbs on immigration, and geopolitical risks continue to weigh on the business.

Market Growth

The fiscal year finished with muted organic sales growth and a cautious fiscal outlook due to heightened macro uncertainty and softer market growth rates in key geographies.

Online Sales Challenges

Shifts to online sales are structural and difficult to address under Procter's current organization, which may cap sales growth below the 4% needed to drive operating leverage.

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 revenue growth, robust profitability metrics, and effective cash flow management despite slowing growth rates. The company maintains a healthy balance sheet with moderate leverage and solid return on equity, though slight increases in debt levels should be monitored.

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	83.93B	84.28B	84.04B	82.01B	80.19B	76.12B
Gross Profit	43.05B	43.12B	43.19B	39.25B	38.03B	39.01B
EBITDA	23.31B	21.07B	22.58B	21.77B	21.24B	20.85B
Net Income	15.49B	15.97B	14.88B	14.65B	14.74B	14.31B
Balance Sheet
Total Assets	122.98B	125.23B	122.37B	120.83B	117.21B	119.31B
Cash, Cash Equivalents and Short-Term Investments	9.12B	9.56B	9.48B	8.25B	7.21B	10.29B
Total Debt	34.14B	34.51B	33.37B	35.42B	32.29B	32.84B
Total Liabilities	70.44B	72.95B	71.81B	73.76B	70.35B	72.65B
Stockholders Equity	52.27B	52.28B	50.29B	46.78B	46.59B	46.38B
Cash Flow
Free Cash Flow	15.03B	14.04B	16.52B	13.79B	13.57B	15.58B
Operating Cash Flow	18.59B	17.82B	19.85B	16.85B	16.72B	18.37B
Investing Cash Flow	-3.27B	-3.82B	-3.50B	-3.50B	-4.42B	-2.83B
Financing Cash Flow	-12.92B	-14.04B	-14.86B	-12.15B	-14.88B	-21.53B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.02
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 160.02 is above the 20-day moving average (MA) of 156.76, above the 50-day MA of 156.13, and below the 200-day MA of 162.58, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PG.

Procter & Gamble Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	78 Outperform	$374.83B	24.59	31.23%	2.58%	0.29%	7.85%
UL	73 Outperform	$157.95B	26.25	28.36%	3.09%	-0.30%	-14.60%
CL	63 Neutral	$67.62B	23.52	705.21%	2.40%	0.05%	3.55%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
KMB	60 Neutral	$42.86B	17.80	196.26%	3.85%	-6.89%	7.52%
KVUE	58 Neutral	$39.42B	27.90	13.56%	4.42%	-2.15%	26.65%
EL	50 Neutral	$31.48B	147.29	-24.69%	1.57%	-8.14%	-389.12%

Procter & Gamble Corporate Events

Procter & Gamble Beauty CEO Announces Retirement

On August 12, 2025, Alexandra Keith, the CEO of Procter & Gamble‘s Beauty division, announced her retirement effective February 20, 2026, after over 36 years with the company. Her retirement agreement includes retaining a special equity award set to vest in August 2026, impacting the company’s leadership transition and potentially influencing its market strategy in the beauty sector.

Procter & Gamble Reports Fiscal Year 2025 Results

Procter & Gamble reported its fiscal year 2025 results, highlighting a 2% growth in organic sales and a 4% increase in core earnings per share despite challenging macroeconomic conditions. The company maintained or grew its market share in 30 of its top 50 category-country combinations. For fiscal year 2026, P&G projects organic sales growth between 0% to 4% and core EPS growth of 0% to 4%, while planning significant cash returns to shareholders through dividends and share repurchases.

Procter & Gamble Reports 5% Increase in Net Sales

Procter & Gamble announced its financial results for the fiscal year ending June 30, 2023, reporting a 5% increase in net sales compared to the previous year. The company attributed this growth to strong consumer demand across its product categories and effective cost management strategies, which have reinforced its competitive position in the consumer goods industry.

Procter & Gamble Appoints Craig Arnold to Board

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.