-0.63 | -1.00%
PROCTER & GAMBLE CO's gross profit margin for the third quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. PROCTER & GAMBLE CO has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.68% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 20194.0 | 19893.0 |
| EBITDA ($mil) | 4810.0 | 4408.0 |
| EBIT ($mil) | 3839.0 | 3705.0 |
| Net Income ($mil) | 2411.0 | 2873.0 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 3991.0 | 2946.0 |
| Total Assets ($mil) | 134605.0 | 136538.0 |
| Total Debt ($mil) | 33112.0 | 31420.0 |
| Equity ($mil) | 65265.0 | 67069.0 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 54.95 | 54.33 |
| EBITDA Margin | 23.82 | 22.16 |
| Operating Margin | 19.01 | 18.62 |
| Sales Turnover | 0.63 | 0.58 |
| Return on Assets | 7.16 | 8.4 |
| Return on Equity | 14.18 | 16.52 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 0.86 | 0.83 |
| Debt/Capital | 0.34 | 0.32 |
| Interest Expense | 179.0 | 202.0 |
| Interest Coverage | 21.45 | 18.34 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 2740.11 | 2791.29 |
| Div / share | 0.53 | 0.48 |
| EPS | 0.81 | 0.94 |
| Book value / share | 23.82 | 24.03 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1.0888221E7 | 1.1231849E7 |
BUY. PROCTER & GAMBLE CO's P/E ratio indicates a premium compared to an average of 19.43 for the Household Products industry and a premium compared to the S&P 500 average of 15.19. Conducting a second comparison, its price-to-book ratio of 2.63 indicates a premium versus the S&P 500 average of 2.12 and a significant discount versus the industry average of 6.21. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PG 19.49 | Peers 19.43 | PG 12.98 | Peers 13.50 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. PG is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PG is trading at a valuation on par to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| PG 15.00 | Peers 16.57 | PG NM | Peers 1.35 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. PG is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PG's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| PG 2.63 | Peers 6.21 | PG -14.40 | Peers -3.51 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PG is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PG is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| PG 2.03 | Peers 2.06 | PG 5.96 | Peers 6.46 | |||||||||||||||||||||
|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PG is trading at a valuation on par with its industry on this measurement. |
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. PG is keeping pace with its peers on the basis of sales growth. |
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