Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $371.14B
• Dividend Yield: 2.61%
• Average Volume (3M): 8.37M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.16
• Revenue Growth: -0.16%
• EPS Growth: 2.74%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Household & Personal Products
• EPS (TTM): 1.54
• Shares Outstanding: 2,344,542,000
• 10 Day Avg. Volume: 7,691,832
• 30 Day Avg. Volume: 8,371,411
• PEG Ratio: 77.32
• Price to Book (P/B): 7.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.70
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 4.35
• 1Y Price Target: $169.25
• Price Target Upside: 6.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 65 Neutral
• Price Target: $170.00 ▲(7.39%Upside)

Procter & Gamble's overall score is driven by its strong financial performance and strategic focus, despite challenging market conditions and technical weakness. The company's commitment to innovation, productivity, and dividends provides a solid foundation, although technical indicators suggest caution in the short term.

Positive Factors

Future sales improvement

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

Market share growth

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 and cost savings

PG announced a 2-year restructuring program focused on portfolio choices, supply chain optimization, and organization design to drive efficiencies and cost savings.

Negative Factors

Demand softness

Demand softness in developed markets, and an increasingly value-conscious consumer hinders P&G's ability to take additional pricing.

Retail sales challenges

Procter's retail sales dipped below 1%, highlighting challenges in consumer behavior among strained consumers.

Tariff headwinds

Tariffs on raw materials from China alongside Canadian headwinds hinder P&G's ability to expand margins.

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 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 Financial Statement Overview

Summary

Procter & Gamble demonstrates strong financial performance with robust profitability, effective leverage management, and solid cash generation. Despite a slight revenue decline and a decrease in free cash flow growth, the company's profitability and financial stability remain strong, indicating its ability to sustain growth.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	84.04B	82.01B	80.19B	76.12B	70.95B
Gross Profit	43.19B	39.25B	38.03B	39.01B	35.70B
EBITDA	22.58B	21.77B	21.24B	20.85B	19.31B
Net Income	14.88B	14.65B	14.74B	14.31B	13.03B
Balance Sheet
Total Assets	122.37B	120.83B	117.21B	119.31B	120.70B
Cash, Cash Equivalents and Short-Term Investments	9.48B	8.25B	7.21B	10.29B	16.18B
Total Debt	33.37B	35.42B	32.29B	32.84B	35.61B
Total Liabilities	71.81B	73.76B	70.35B	72.65B	73.82B
Stockholders Equity	50.29B	46.78B	46.59B	46.38B	46.52B
Cash Flow
Free Cash Flow	16.52B	13.79B	13.57B	15.58B	14.33B
Operating Cash Flow	19.85B	16.85B	16.72B	18.37B	17.40B
Investing Cash Flow	-3.50B	-3.50B	-4.42B	-2.83B	3.04B
Financing Cash Flow	-14.86B	-12.15B	-14.88B	-21.53B	-8.37B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 158.30
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 158.3 is above the 20-day moving average (MA) of 156.92, below the 50-day MA of 160.06, and below the 200-day MA of 163.89, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 92.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$148.40B	24.24	30.53%	0.05%	1.99%	-10.59%
CHD	71 Outperform	$23.95B	41.72	13.35%	1.19%	2.18%	-26.08%
KMB	68 Neutral	$42.27B	17.36	229.84%	3.89%	-3.12%	34.80%
KVUE	68 Neutral	$43.85B	41.65	10.22%	3.59%	-1.18%	-29.18%
CL	66 Neutral	$71.26B	24.90	977.07%	2.32%	0.98%	12.12%
Sector *	65 Neutral	$27.23B	15.60	-4.43%	2.56%	1.05%	4.97%
PG	65 Neutral	$371.14B	25.14	30.29%	2.61%	-0.16%	2.74%

Procter & Gamble Corporate Events

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.

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.

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.

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.