Procter & Gamble Co

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PG : NYSE : Consumer Goods
$92.44 -0.35 | -0.38%
Today's Range: 92.28 - 92.6644
Avg. Daily Volume: 6325600.0
08/23/17 - 4:01 PM ET

Financial Analysis


PROCTER & GAMBLE CO's gross profit margin for the fourth 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 0.65 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 remained virtually unchanged only decreasing by 3.76% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)16079.016102.0
EBITDA ($mil)3918.03695.0
EBIT ($mil)3198.02856.0
Net Income ($mil)2215.01951.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)15137.013348.0
Total Assets ($mil)120406.0127136.0
Total Debt ($mil)31592.030598.0
Equity ($mil)55184.057341.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin54.0154.85
EBITDA Margin24.3622.94
Operating Margin19.8917.74
Sales Turnover0.540.51
Return on Assets12.728.26
Return on Equity17.8716.87
Debt Q4 FY17 Q4 FY16
Current Ratio0.881.1
Debt/Capital0.360.35
Interest Expense116.0150.0
Interest Coverage27.5719.04


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)2553.32668.07
Div / share0.690.67
EPS0.820.71
Book value / share21.6121.49
Institutional Own % n/a n/a
Avg Daily Volume6194274.07697222.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 24.82 for the Household Products industry and a value on par with the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 4.26 indicates a premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 61.82. 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 25.02 Peers 24.82   PG 18.43 Peers 18.08

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 20.74 Peers 22.30   PG 1.97 Peers 2.93

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 4.26 Peers 61.82   PG 5.44 Peers 17.58

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PG 3.61 Peers 3.42   PG -0.37 Peers -0.35

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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