Procter & Gamble Company (The)
Find Ratings ReportsPROCTER & GAMBLE CO's gross profit margin for the second quarter of its fiscal year 2024 has increased 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 0.40 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.
During the same period, stockholders' equity ("net worth") has increased by 9.17% 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.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 21441.0 | 20773.0 |
EBITDA ($mil) | 6582.0 | 5438.0 |
EBIT ($mil) | 5861.0 | 4785.0 |
Net Income ($mil) | 3468.0 | 3933.0 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 7890.0 | 6854.0 |
Total Assets ($mil) | 120709.0 | 117715.0 |
Total Debt ($mil) | 33713.0 | 34882.0 |
Equity ($mil) | 48535.0 | 44455.0 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 56.28 | 50.69 |
EBITDA Margin | 30.69 | 26.17 |
Operating Margin | 27.34 | 23.03 |
Sales Turnover | 0.7 | 0.68 |
Return on Assets | 12.23 | 12.13 |
Return on Equity | 29.85 | 31.49 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 0.64 | 0.56 |
Debt/Capital | 0.41 | 0.44 |
Interest Expense | 247.0 | 171.0 |
Interest Coverage | 23.73 | 27.98 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 2353.02 | 2359.11 |
Div / share | 0.94 | 0.91 |
EPS | 1.4 | 1.59 |
Book value / share | 20.63 | 18.84 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 6873774.0 | 6607469.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a value on par with the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 7.83 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, PROCTER & GAMBLE CO proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PG 27.05 | Peers 85.83 | PG 19.83 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PG is trading at a significant 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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PG 23.14 | Peers 18.08 | PG 2.91 | Peers 1.16 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. PG is trading at a significant premium to 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 significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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PG 7.83 | Peers 19.07 | PG 4.73 | Peers 12.58 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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PG 4.53 | Peers 84.44 | PG 4.54 | Peers 42.35 | |||||||||||||||||||||
Discount. 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 significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PG significantly trails its peers on the basis of sales growth. |
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