Procter & Gamble Co
PG : NYSE : Consumer Goods

$62.32 -0.63 | -1.00%
Today's Range: 62.24 - 62.89
Avg. Daily Volume: 10,478,200
05/30/12 - 4:00 PM ET
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Financial Analysis


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 ($mil)20194.019893.0
EBITDA ($mil)4810.04408.0
EBIT ($mil)3839.03705.0
Net Income ($mil)2411.02873.0


Balance Sheet Q3 FY12 Q3 FY11
Cash & Equiv. ($mil)3991.02946.0
Total Assets ($mil)134605.0136538.0
Total Debt ($mil)33112.031420.0
Equity ($mil)65265.067069.0


Profitability Q3 FY12 Q3 FY11
Gross Profit Margin54.9554.33
EBITDA Margin23.8222.16
Operating Margin19.0118.62
Sales Turnover0.630.58
Return on Assets7.168.4
Return on Equity14.1816.52
Debt Q3 FY12 Q3 FY11
Current Ratio0.860.83
Debt/Capital0.340.32
Interest Expense179.0202.0
Interest Coverage21.4518.34


Share Data Q3 FY12 Q3 FY11
Shares outstanding (mil)2740.112791.29
Div / share0.530.48
EPS0.810.94
Book value / share23.8224.03
Institutional Own % n/a n/a
Avg Daily Volume1.0888221E71.1231849E7

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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