Procter & Gamble Co

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PG : NYSE : Consumer Goods
$88.915 -0.44 | -0.5%
Today's Range: 88.83 - 89.3
Avg. Daily Volume: 6762300.0
06/27/17 - 10:17 AM ET

Financial Analysis


PROCTER & GAMBLE CO's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. 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 9.03% 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 FY17 Q3 FY16
Net Sales ($mil)15605.015755.0
EBITDA ($mil)4181.04327.0
EBIT ($mil)3516.03542.0
Net Income ($mil)2522.02750.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)14327.013819.0
Total Assets ($mil)118091.0127508.0
Total Debt ($mil)30414.032815.0
Equity ($mil)53840.059187.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin54.8955.96
EBITDA Margin26.7927.46
Operating Margin22.5322.48
Sales Turnover0.550.52
Return on Assets12.757.11
Return on Equity17.9113.75
Debt Q3 FY17 Q3 FY16
Current Ratio0.891.09
Debt/Capital0.360.36
Interest Expense96.0146.0
Interest Coverage36.6324.26


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)2557.612661.85
Div / share0.670.66
EPS0.930.81
Book value / share21.0522.24
Institutional Own % n/a n/a
Avg Daily Volume6758889.09273259.0

Valuation


BUY. PROCTER & GAMBLE CO's P/E ratio indicates a discount compared to an average of 25.15 for the Household Products industry and a value on par with the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 4.23 indicates a premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 55.94. 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 24.94 Peers 25.15   PG 17.51 Peers 17.82

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 21.69 Peers 23.48   PG 2.42 Peers 3.23

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.

 

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PG 4.23 Peers 55.94   PG 21.84 Peers 41.08

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 3.50 Peers 3.43   PG -1.02 Peers -0.85

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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