PGPG
US • CONSUMER DEFENSIVE
$146.64
P/E
21.45
PEG
3.70
FCF Yield
4.4%
Rev Growth YoY
+7.4% YoY
Gross Margin
51.0%
Health Score
9/10
D/E Ratio
0.66
Confidence
MEDIUM
Business Snapshot
The Procter & Gamble Company is a dominant player in the household and personal products sector, owning a portfolio of well-known brands across categories including beauty, grooming, health care, fabric & home care, and baby, feminine & family care. As a large-cap company with a market capitalization of $347.01 billion, it competes in a highly stable, non-cyclical market where consumer demand remains relatively consistent through economic cycles. P&G generates substantial financial scale, with trailing twelve-month revenue of $86.72 billion, reflecting its position as one of the world's largest consumer goods firms. The company's defining characteristic is its immense brand portfolio and distribution scale, which create a significant competitive moat and allow for consistent cash generation.
Financial Health
P&G demonstrates robust financial health, underpinned by a gross margin of 51.0% and a net margin of 19.2%, indicating strong pricing power and operational efficiency. The balance sheet is healthy, with a moderate debt-to-equity ratio of 0.66x, though a current ratio of 0.7x suggests a reliance on operating cash flow to meet short-term obligations rather than liquid assets...
Risk Assessment
- VALUATION DIVERGENCE — The Python DCF estimate of $183.55 is the only DCF available, and while it suggests a 20% discount to intrinsic value, this model is based on a simplified approach and is highly sensitive to the terminal growth rate.
- TECHNICALS — The price is below the 200-day moving average of $148.73, indicating an established intermediate-term downtrend, and a death cross (50-day MA crossing below 200-day MA) has occurred.
- LIQUIDITY — The current ratio of 0.7x is below the 1.0x threshold, which could mean the company might face liquidity pressure if it could not access capital markets or generate sufficient operating cash flow.
- 52-WEEK POSITION — The current price of $146.64 is below the midpoint of the 52-week range ($150.82), and it trades -11.7% below the 52-week high of $166.0, reflecting a recent pullback from peak levels....
P&G demonstrates robust financial health, underpinned by a gross margin of 51.0% and a net margin of 19.2%, indicating strong pricing power and operational efficiency. The balance sheet is healthy, with a moderate debt-to-equity ratio of 0.66x, though a current ratio of 0.7x suggests a reliance on operating cash flow to meet short-term obligations rather than liquid assets. The company is a cash-generating machine, producing $15.12 billion in free cash flow with an attractive free cash flow yield of 4.4%. For an investor, this financial strength provides a strong foundation for consistent dividend payments and share buybacks, as well as the capacity to reinvest in the business for future growth.
- VALUATION DIVERGENCE — The Python DCF estimate of $183.55 is the only DCF available, and while it suggests a 20% discount to intrinsic value, this model is based on a simplified approach and is highly sensitive to the terminal growth rate. - TECHNICALS — The price is below the 200-day moving average of $148.73, indicating an established intermediate-term downtrend, and a death cross (50-day MA crossing below 200-day MA) has occurred. - LIQUIDITY — The current ratio of 0.7x is below the 1.0x threshold, which could mean the company might face liquidity pressure if it could not access capital markets or generate sufficient operating cash flow. - 52-WEEK POSITION — The current price of $146.64 is below the midpoint of the 52-week range ($150.82), and it trades -11.7% below the 52-week high of $166.0, reflecting a recent pullback from peak levels.
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