Procter & Gamble Co

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PG : NYSE : Consumer Goods
$84.37 | %
Today's Range: 83.47 - 84.4
Avg. Daily Volume: 2.15435E7
12/09/16 - 4:00 PM ET

Financial Analysis


PROCTER & GAMBLE CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 0.64 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 6.46% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)16518.016527.0
EBITDA ($mil)4649.04632.0
EBIT ($mil)3921.03901.0
Net Income ($mil)2714.02601.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)15941.012606.0
Total Assets ($mil)129043.0129265.0
Total Debt ($mil)31125.030487.0
Equity ($mil)58262.062287.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin56.1455.64
EBITDA Margin28.1428.02
Operating Margin23.7423.6
Sales Turnover0.510.53
Return on Assets8.235.91
Return on Equity16.7612.79
Debt Q1 FY17 Q1 FY16
Current Ratio1.091.13
Debt/Capital0.350.33
Interest Expense131.0140.0
Interest Coverage29.9327.86


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)2675.992720.57
Div / share0.670.66
EPS1.00.96
Book value / share21.7722.89
Institutional Own % n/a n/a
Avg Daily Volume2.2033036E78314586.0

Valuation


BUY. PROCTER & GAMBLE CO's P/E ratio indicates a discount compared to an average of 26.26 for the Household Products industry and a value on par with the S&P 500 average of 25.37. Conducting a second comparison, its price-to-book ratio of 3.81 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 23.90. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PG 23.51 Peers 26.26   PG 14.78 Peers 15.25

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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PG 19.81 Peers 21.46   PG 2.22 Peers 1.87

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PG 3.81 Peers 23.90   PG 23.85 Peers 39.76

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 3.40 Peers 3.19   PG -4.70 Peers -3.42

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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