PROCTER & GAMBLE Co (PG) stock analysis

P/E below its 5-year median

Procter & Gamble's P/E of 25.4 is below its own 5-year median of 25.7.

P/E below the industry

Procter & Gamble's P/E of 25.4 is below the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 29.9.

EV/EBITDA below its 5-year median

Procter & Gamble's EV/EBITDA of 17.9 is below its 5-year median of 19.2.

P/S above the industry

Procter & Gamble's price-to-sales of 4.42 is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 2.66 (book value is negative, so we use sales).

Trading above fair value

The share price of $167.67 is above our fair value estimate of $165.04.

Margin of safety under 20%

The price is 1.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -4.4% over the last twelve months, against a 5-year average of 2.3% a year.

Growing slower than the industry

Revenue grew 3.5% over the last twelve months; the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median is 5.9%.

Guidance lowered

Procter & Gamble lowered its fiscal year 2027 repurchase of common shares outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 49.8% over the last twelve months, against 51.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 2.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 18.2% over the last twelve months, against a 5-year average of 18.3%.

Net margin above the industry

Procter & Gamble's net margin of 18.2% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 0.2%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 51.2% of total debt.

Interest well covered

Operating income covers interest expense 22.0 times.

Short-term assets don't cover short-term debts

Current assets are 0.72 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.49; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Procter & Gamble paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Procter & Gamble yields 1.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 64.2% of net income.

Covered by free cash flow

Dividends take 67.1% of free cash flow.