PROCTER & GAMBLE CO's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. PROCTER & GAMBLE CO has weak liquidity. Currently, the Quick Ratio is 0.59 which 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 decreased by 5.65% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||15755.0||16930.0|
|Net Income ($mil)||2750.0||2153.0|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||13819.0||13160.0|
|Total Assets ($mil)||127508.0||130937.0|
|Total Debt ($mil)||32815.0||32439.0|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||55.96||52.84|
|Return on Assets||7.11||6.94|
|Return on Equity||14.01||15.88|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||2661.85||2713.0|
|Div / share||0.66||0.64|
|Book value / share||22.24||23.12|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9196661.0||9541807.0|
BUY. The current P/E ratio indicates a discount compared to an average of 32.40 for the Household Products industry and a premium compared to the S&P 500 average of 23.99. Conducting a second comparison, its price-to-book ratio of 3.59 indicates a premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 72.39. 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.
|PG 26.68||Peers 32.40||PG 13.97||Peers 16.29|
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.
Discount. 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 discount to its peers.
|PG 20.19||Peers 22.73||PG 1.43||Peers 1.23|
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.
Premium. 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 premium to its peers.
|PG 3.59||Peers 72.39||PG -15.54||Peers -19.04|
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.
|PG 3.17||Peers 3.16||PG -9.23||Peers -7.03|
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
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