Procter & Gamble Co.

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PG : NYSE : Consumer Non-Durables
$81.05 | %
Today's Range: 80.48 - 81.12
Avg. Daily Volume: 8233000.0
02/23/18 - 4:00 PM ET

Financial Analysis


PROCTER & GAMBLE CO's gross profit margin for the second quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. PROCTER & GAMBLE CO has weak liquidity. Currently, the Quick Ratio is 0.72 which 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.98% 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 FY18 Q2 FY17
Net Sales ($mil)17395.016856.0
EBITDA ($mil)4833.04757.0
EBIT ($mil)4157.04050.0
Net Income ($mil)2495.07875.0


Balance Sheet Q2 FY18 Q2 FY17
Cash & Equiv. ($mil)18758.013454.0
Total Assets ($mil)126644.0117033.0
Total Debt ($mil)37733.029467.0
Equity ($mil)54112.053060.0


Profitability Q2 FY18 Q2 FY17
Gross Profit Margin54.6755.84
EBITDA Margin27.7828.22
Operating Margin23.924.03
Sales Turnover0.520.56
Return on Assets7.9613.06
Return on Equity18.1817.76
Debt Q2 FY18 Q2 FY17
Current Ratio0.940.89
Debt/Capital0.410.36
Interest Expense122.0122.0
Interest Coverage34.0733.2


Share Data Q2 FY18 Q2 FY17
Shares outstanding (mil)2521.02556.48
Div / share0.690.67
EPS0.930.93
Book value / share21.4620.76
Institutional Own % n/a n/a
Avg Daily Volume8387710.06839659.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.34 for the Household Products industry and a discount compared to the S&P 500 average of 25.51. Conducting a second comparison, its price-to-book ratio of 3.84 indicates a premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 14.33. 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 22.03 Peers 23.34   PG 14.88 Peers 15.97

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 18.19 Peers 19.90   PG 1.59 Peers 1.67

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PG 3.84 Peers 14.33   PG 8.40 Peers 9.86

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 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 3.16 Peers 3.11   PG 0.76 Peers 1.48

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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