Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $404.23B
• Dividend Yield: 2.33%
• Average Volume (3M): 8.38M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.22
• Revenue Growth: 0.49%
• EPS Growth: 5.02%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Household & Personal Products
• EPS (TTM): 6.28
• Shares Outstanding: 2,344,851,800
• 10 Day Avg. Volume: 8,414,929
• 30 Day Avg. Volume: 8,383,643
• PEG Ratio: 5.47
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.63
• Price to Cash Flow (P/CF): 20.30
• P/FCF Ratio: 20.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $180.05
• Price Target Upside: 9.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

Procter & Gamble exhibits strong financial performance supported by robust profitability, effective leverage management, and strong cash generation capabilities. Despite a high valuation, the company's consistent dividend yield provides a safety net for investors. The company's strategic initiatives to enhance operational efficiency and leadership changes are positive long-term growth drivers. However, technical indicators suggest a neutral short-term outlook, and external factors such as currency and commodity headwinds remain challenges. Overall, the stock score reflects a solid, stable investment with potential for long-term gains.

Positive Factors

Cost Efficiency

P&G continues to implement comprehensive cost-saving initiatives and operational improvements to support earnings, helping to mitigate the impact of rising commodity costs and foreign exchange pressures.

Innovation

P&G’s innovation pipeline to create and extend superiority across its business is very strong, and the company continues to leverage recent innovations to drive more trial and household penetration.

Sales Performance

P&G remains optimistic about achieving at least the lower end of its full-year target, reflecting management's expectation of stronger sales driven by continued robust performance in key markets.

Negative Factors

Consumer Spending in China

Continued weakness in broader consumer spending in China remains a concern.

Geopolitical Risks

Risks tied to a potential Trump 2.0 administration, alongside persistent market challenges such as soft consumer sentiment in China and the Middle East, may prompt the market to adopt a wait-and-see approach.

Macroeconomic Challenges

Achieving the higher end of the organic sales growth target may prove challenging given ongoing macroeconomic headwinds.

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 wide array of consumer products, which are divided into several business segments: beauty, grooming, health care, fabric & home care, and baby, feminine & family care. Each segment contributes to P&G's earnings by offering a range of products under well-established brands. The company sells its products through various retail channels, including mass merchandisers, e-commerce platforms, grocery stores, membership club stores, and drug stores. P&G's revenue model is bolstered by its strong brand recognition, global market presence, and continuous investment in innovation and marketing. Strategic partnerships with retailers and a focus on emerging markets also play a crucial role in expanding its revenue base.

Procter & Gamble Financial Statement Overview

Summary

Procter & Gamble displays strong financial health across all statements. The income statement reveals robust profitability and steady revenue growth. The balance sheet highlights a stable financial position with effective leverage management. Cash flows are strong, demonstrating the company's ability to generate and manage cash effectively. While there are moderate debt levels, the overall financial trajectory remains positive and sustainable.

Income Statement

Procter & Gamble's income statement showcases strong profitability with a stable gross profit margin of approximately 51.3% in the TTM. The company demonstrates a healthy net profit margin of 12.9% indicating effective cost management. Revenue growth has been moderate, with a 2.8% increase from the previous year, reflecting steady demand for consumer products. EBIT and EBITDA margins are robust at 23.6% and 26.4% respectively, highlighting operational efficiency.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.67, showing prudent use of leverage. Procter & Gamble's return on equity (ROE) is strong at 21.1%, indicating effective use of shareholder funds. The equity ratio stands at 41.9%, demonstrating a stable capital structure. While the company's debt levels are significant, they are offset by a solid equity base.

Cash Flow

The cash flow statement reflects a strong ability to generate cash with an operating cash flow to net income ratio of 1.86, indicating efficient cash conversion. Free cash flow growth is positive with a 2.6% increase, supporting ongoing investment and dividend payments. The free cash flow to net income ratio of 1.54 signifies strong cash profitability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
84.35B	84.04B	82.01B	80.19B	76.12B	70.95B
	Gross Profit
43.30B	43.19B	39.25B	38.03B	39.01B	35.70B
	EBIT
19.88B	18.55B	18.13B	17.81B	17.99B	15.71B
	EBITDA
23.29B	22.58B	21.82B	21.24B	20.85B	19.31B
	Net Income Common Stockholders
15.48B	14.88B	14.65B	14.74B	14.31B	13.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.90B	9.48B	8.25B	7.21B	10.29B	16.18B
	Total Assets
132.99B	122.37B	120.83B	117.21B	119.31B	120.70B
	Total Debt
29.98B	33.37B	34.61B	31.49B	31.99B	34.72B
	Net Debt
25.08B	23.89B	26.36B	24.28B	21.70B	18.54B
	Total Liabilities
66.21B	71.81B	73.76B	70.35B	72.65B	73.82B
	Stockholders Equity
66.77B	50.29B	46.78B	46.59B	46.38B	46.52B
Cash Flow		Free Cash Flow
16.71B	16.52B	13.79B	13.57B	15.58B	14.33B
	Operating Cash Flow
20.21B	19.85B	16.85B	16.72B	18.37B	17.40B
	Investing Cash Flow
-4.55B	-3.50B	-3.50B	-4.42B	-2.83B	3.04B
	Financing Cash Flow
-12.97B	-14.86B	-12.15B	-14.88B	-21.53B	-8.37B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 163.75
• 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 Negative. The current price of 163.75 is below the 20-day moving average (MA) of 168.65, below the 50-day MA of 169.19, and below the 200-day MA of 167.86, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PG.

Procter & Gamble Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CL	79 Outperform	$77.86B	27.35	704.02%	2.08%	3.30%	26.83%
PG	76 Outperform	$404.23B	27.47	31.05%	2.33%	0.49%	5.02%
UL	76 Outperform	$157.08B	25.09	30.53%	2.97%	1.99%	-10.59%
CHD	74 Outperform	$27.26B	46.72	14.25%	1.03%	4.08%	-22.34%
RBGLY	73 Outperform	$46.37B	26.68	18.96%	3.33%	-0.29%	-8.82%
KMB	71 Outperform	$48.16B	19.23	290.03%	3.39%	-1.83%	45.13%
Sector *	63 Neutral	$20.94B	14.39	-10.05%	3.13%	1.25%	3.11%

Procter & Gamble Corporate Events

Procter & Gamble Revamps Executive Leadership for Growth

Procter & Gamble has announced a significant change in its executive leadership team, marking a strategic move to strengthen its business operations. This shift is expected to enhance P&G’s ability to drive growth and innovation within its industry, potentially impacting stakeholders with improved efficiencies and market adaptation.

Procter & Gamble Restructures to Enhance Global Efficiency

Procter & Gamble announced a significant restructuring of its global operations to streamline efficiencies and enhance competitiveness. The company aims to consolidate its production facilities, resulting in an anticipated reduction in operational costs by 10% over the next fiscal year. This move is expected to improve the company’s market positioning and provide better value to its stakeholders.