Procter & Gamble Co

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PG : NYSE : Consumer Goods
$91.09 | %
Today's Range: 90.45 - 91.36
Avg. Daily Volume: 9298800.0
02/17/17 - 4:00 PM ET

Financial Analysis


PROCTER & GAMBLE CO's gross profit margin for the second 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 0.63 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 13.90% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)16856.016915.0
EBITDA ($mil)4757.04785.0
EBIT ($mil)4050.04062.0
Net Income ($mil)7875.03206.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)13454.014277.0
Total Assets ($mil)117033.0129143.0
Total Debt ($mil)29467.031526.0
Equity ($mil)53060.061628.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin55.8455.22
EBITDA Margin28.2228.28
Operating Margin24.0324.01
Sales Turnover0.560.52
Return on Assets13.066.56
Return on Equity17.7613.31
Debt Q2 FY17 Q2 FY16
Current Ratio0.891.13
Debt/Capital0.360.34
Interest Expense122.0143.0
Interest Coverage33.228.41


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)2556.482704.57
Div / share0.670.66
EPS0.931.01
Book value / share20.7622.79
Institutional Own % n/a n/a
Avg Daily Volume9360458.02.256426E7

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 26.15 for the Household Products industry and a value on par with the S&P 500 average of 26.35. Conducting a second comparison, its price-to-book ratio of 4.37 indicates a premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 10.12. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, PROCTER & GAMBLE CO seems to be trading at a premium 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 26.32 Peers 26.15   PG 17.54 Peers 17.26

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 22.09 Peers 23.20   PG 2.55 Peers 2.88

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PG 4.37 Peers 10.12   PG 17.34 Peers 256.57

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 3.56 Peers 3.38   PG -2.54 Peers -2.08

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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