Procter & Gamble Co

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PG : NYSE : Consumer Goods
$84.33 | %
Today's Range: 84.24 - 84.86
Avg. Daily Volume: 21,672,800
10/21/16 - 4:01 PM ET

Financial Analysis

PROCTER & GAMBLE CO's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.58 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.

During the same period, stockholders' equity ("net worth") has decreased by 8.13% 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 FY16 Q4 FY15
Net Sales ($mil)16102.016553.0
EBITDA ($mil)3695.04215.0
EBIT ($mil)2856.03407.0
Net Income ($mil)1951.0521.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)13348.011612.0
Total Assets ($mil)127136.0129495.0
Total Debt ($mil)30598.030350.0
Equity ($mil)57341.062419.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin54.8553.28
EBITDA Margin22.9425.46
Operating Margin17.7420.58
Sales Turnover0.510.55
Return on Assets8.265.43
Return on Equity16.8712.68
Debt Q4 FY16 Q4 FY15
Current Ratio1.11.0
Interest Expense150.0148.0
Interest Coverage19.0423.02

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2668.072714.57
Div / share0.670.66
Book value / share21.4922.99
Institutional Own % n/a n/a
Avg Daily Volume2.1138536E77402029.0


BUY. PROCTER & GAMBLE CO's P/E ratio indicates a discount compared to an average of 28.64 for the Household Products industry and a value on par with the S&P 500 average of 24.54. Conducting a second comparison, its price-to-book ratio of 4.11 indicates a premium versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 36.32. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PG 25.28 Peers 28.64   PG 15.25 Peers 16.33

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PG 20.96 Peers 23.10   PG 2.26 Peers 1.69

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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PG 4.11 Peers 36.32   PG 23.75 Peers 36.33

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PG 3.61 Peers 3.43   PG -7.71 Peers -4.97

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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