PGPG
US • CONSUMER DEFENSIVE
$147.41
P/E
21.56
PEG
3.72
FCF Yield
4.4%
Rev Growth YoY
+7.4% YoY
Gross Margin
51.0%
Health Score
8/10
D/E Ratio
0.66
Confidence
MEDIUM
Business Snapshot
Procter & Gamble is a dominant player in the consumer defensive sector, operating in the household and personal products industry. Its vast portfolio includes well-known brands across beauty, grooming, health care, fabric & home care, and baby, feminine & family care. As a large-cap company with a market capitalisation of $343.26B and trailing twelve-month revenue of $86.72B, it enjoys immense financial scale and stability. The company's defining characteristic is its unparalleled portfolio of essential household brands, which provides a defensive moat through consistent consumer demand across economic cycles.
Financial Health
P&G demonstrates strong profitability with a gross margin of 51.0% and a net margin of 19.2%, both healthy figures for a consumer staples company. The balance sheet is solid, with a low Debt/Equity ratio of 0.66x, though the Current Ratio of 0.7x suggests potential short-term liquidity tightness, a common trait for companies with efficient inventory management...
Risk Assessment
- VALUATION — The PEG ratio of 3.72x suggests the stock is expensive relative to its near-term earnings growth rate of 5.8%.
- EARNINGS QUALITY — The company has only beaten estimates in 2 out of the last 4 quarters, indicating that management guidance is not consistently conservative.
- DEBT / LIQUIDITY — The current ratio of 0.7x is below the conventional 1.0x threshold, potentially indicating limited short-term liquidity coverage.
- TECHNICALS — The price is below its 200-day moving average of $148.14, and a death cross (50-day MA crossing below 200-day MA) has occurred, signaling a potential established downtrend.
- 52-WEEK POSITION — The current price of $147.41 is well below the 52-week high of $164.77 and below the midpoint of the 52-week range ($149.70), indicating the stock is trading in the lower half of its annual range....
P&G demonstrates strong profitability with a gross margin of 51.0% and a net margin of 19.2%, both healthy figures for a consumer staples company. The balance sheet is solid, with a low Debt/Equity ratio of 0.66x, though the Current Ratio of 0.7x suggests potential short-term liquidity tightness, a common trait for companies with efficient inventory management. The company is a cash-generation powerhouse, producing $15.09B in free cash flow and offering a free cash flow yield of 4.4%. This robust cash generation provides ample capacity for dividends, share buybacks, and reinvestment in the business, making the company a reliable income and value holding.
- VALUATION — The PEG ratio of 3.72x suggests the stock is expensive relative to its near-term earnings growth rate of 5.8%. - EARNINGS QUALITY — The company has only beaten estimates in 2 out of the last 4 quarters, indicating that management guidance is not consistently conservative. - DEBT / LIQUIDITY — The current ratio of 0.7x is below the conventional 1.0x threshold, potentially indicating limited short-term liquidity coverage. - TECHNICALS — The price is below its 200-day moving average of $148.14, and a death cross (50-day MA crossing below 200-day MA) has occurred, signaling a potential established downtrend. - 52-WEEK POSITION — The current price of $147.41 is well below the 52-week high of $164.77 and below the midpoint of the 52-week range ($149.70), indicating the stock is trading in the lower half of its annual range.
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