-0.18 | -0.22%
PROCTER & GAMBLE CO's gross profit margin for the third quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. PROCTER & GAMBLE CO has very weak liquidity. Currently, the Quick Ratio is 0.46 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, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.06% 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 FY13 | Q3 FY12 |
|---|---|---|
| Net Sales ($mil) | 20598.0 | 20194.0 |
| EBITDA ($mil) | 4609.0 | 4810.0 |
| EBIT ($mil) | 3869.0 | 3839.0 |
| Net Income ($mil) | 2566.0 | 2411.0 |
| Balance Sheet | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 5876.0 | 3991.0 |
| Total Assets ($mil) | 139131.0 | 134605.0 |
| Total Debt ($mil) | 32223.0 | 33112.0 |
| Equity ($mil) | 67268.0 | 65265.0 |
| Profitability | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Gross Profit Margin | 53.71 | 54.95 |
| EBITDA Margin | 22.37 | 23.81 |
| Operating Margin | 18.78 | 19.01 |
| Sales Turnover | 0.6 | 0.62 |
| Return on Assets | 9.39 | 7.15 |
| Return on Equity | 16.89 | 14.07 |
| Debt | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Current Ratio | 0.89 | 0.86 |
| Debt/Capital | 0.32 | 0.34 |
| Interest Expense | 163.0 | 179.0 |
| Interest Coverage | 23.74 | 21.45 |
| Share Data | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Shares outstanding (mil) | 2740.77 | 2740.11 |
| Div / share | 0.56 | 0.53 |
| EPS | 0.88 | 0.81 |
| Book value / share | 24.54 | 23.82 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 8990967.0 | 9696421.0 |
BUY. PROCTER & GAMBLE CO's P/E ratio indicates a discount compared to an average of 24.19 for the Household Products industry and a value on par with the S&P 500 average of 19.08. Conducting a second comparison, its price-to-book ratio of 3.27 indicates a premium versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 11.22. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, PROCTER & GAMBLE CO proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PG 20.20 | Peers 24.19 | PG 15.25 | Peers 15.24 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PG is trading at a discount to 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. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| PG 18.52 | Peers 19.93 | PG 0.69 | Peers 0.90 | |||||||||||||||||||||
|
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. |
Discount. 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 trades at a discount to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| PG 3.27 | Peers 11.22 | PG 24.06 | Peers 18.16 | |||||||||||||||||||||
|
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PG is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| PG 2.63 | Peers 2.60 | PG -0.24 | Peers 0.36 | |||||||||||||||||||||
|
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. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. PG significantly trails its peers on the basis of sales growth |
|||||||||||||||||||||||
