NYSE:PG

Stock Analysis Report

Executive Summary

The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa.

Snowflake

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Procter & Gamble's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

PG

1.3%

US Household Products

0.5%

US Market


1 Year Return

31.6%

PG

28.2%

US Household Products

16.1%

US Market

Return vs Industry: PG exceeded the US Household Products industry which returned 28.2% over the past year.

Return vs Market: PG exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

PGIndustryMarket
7 Day-0.1%1.3%0.5%
30 Day-1.5%2.3%3.9%
90 Day2.6%1.4%6.6%
1 Year35.4%31.6%31.7%28.2%18.7%16.1%
3 Year59.8%45.5%58.0%44.7%47.2%37.7%
5 Year58.5%35.4%62.3%39.6%61.5%43.7%

Price Volatility Vs. Market

How volatile is Procter & Gamble's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Procter & Gamble undervalued compared to its fair value and its price relative to the market?

74.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PG ($120.34) is trading above our estimate of fair value ($119.31)

Significantly Below Fair Value: PG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PG is poor value based on its PE Ratio (74.8x) compared to the Household Products industry average (25.4x).

PE vs Market: PG is poor value based on its PE Ratio (74.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: PG is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: PG is overvalued based on its PB Ratio (6.6x) compared to the US Household Products industry average (4x).


Next Steps

Future Growth

How is Procter & Gamble forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PG's forecast earnings growth (17.7% per year) is above the savings rate (2.7%).

Earnings vs Market: PG's earnings (17.7% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: PG's earnings are forecast to grow, but not significantly.

Revenue vs Market: PG's revenue (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PG's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PG's Return on Equity is forecast to be high in 3 years time (27.5%)


Next Steps

Past Performance

How has Procter & Gamble performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PG has large one-off items impacting its financial results.

Growing Profit Margin: PG's current net profit margins (5.9%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: PG's earnings have declined by -4.3% per year over the past 5 years.

Accelerating Growth: PG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PG had negative earnings growth (-59%) over the past year, making it difficult to compare to the Household Products industry average (-14.6%).


Return on Equity

High ROE: PG's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Procter & Gamble's financial position?


Financial Position Analysis

Short Term Liabilities: PG's short term assets ($21.9B) do not cover its short term liabilities ($30.3B)

Long Term Liabilities: PG's short term assets ($21.9B) do not cover its long term liabilities (36.8B)


Debt to Equity History and Analysis

Debt Level: PG's debt to equity ratio (62.8%) is considered high.

Reducing Debt: PG's debt to equity ratio has increased from 49.8% to 62.8% over the past 5 years.

Debt Coverage: PG's debt is well covered by operating cash flow (53.7%).

Interest Coverage: PG's interest payments on its debt are well covered by EBIT (57.3x coverage).


Balance Sheet

Inventory Level: PG has a high level of physical assets or inventory.

Debt Coverage by Assets: PG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Procter & Gamble's current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: PG's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PG's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: PG's dividends per share have been stable in the past 10 years.

Growing Dividend: PG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (182%), PG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PG's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

What is the CEO of Procter & Gamble's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

David Taylor (61yo)

4yrs

Tenure

US$20,498,812

Compensation

Mr. David S. Taylor has been the Chairman of the Board of The Procter & Gamble Company since July 1, 2016 and has been its Chief Executive Officer and President since November 1, 2015. Mr. Taylor served as ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD20.50M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Management: PG's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PG's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: PG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$266,968,59631 Oct 19
Trian Fund Management, L.P.
EntityCompany
Shares2,148,127
Max PriceUS$125.02
SellUS$86,58530 Oct 19
Valarie Sheppard
EntityIndividual
Shares697
Max PriceUS$124.23
SellUS$1,373,29524 Oct 19
Stephen Bishop
EntityIndividual
Shares11,165
Max PriceUS$123.00
SellUS$321,41315 Oct 19
Mary Ferguson-McHugh
EntityIndividual
Role
Senior Key Executive
Chief Executive Officer of Family Care and P&G Ventures
Shares2,680
Max PriceUS$119.93
SellUS$993,64128 Aug 19
R. Keith
EntityIndividual
Shares8,248
Max PriceUS$120.52
SellUS$1,021,57228 Aug 19
Kathleen Fish
EntityIndividual
Role
Chief Technology Officer
Chief Research
Shares8,472
Max PriceUS$120.58
SellUS$151,53228 Aug 19
Valarie Sheppard
EntityIndividual
Shares1,259
Max PriceUS$120.36
SellUS$547,16227 Aug 19
Fama Francisco
EntityIndividual
Shares4,598
Max PriceUS$119.00
SellUS$919,84326 Aug 19
Shailesh Jejurikar
EntityIndividual
Shares7,727
Max PriceUS$119.04
SellUS$1,258,11626 Aug 19
Carolyn Tastad
EntityIndividual
Role
Head of Sales
Group President of North America & Chief Sales Officer
Shares10,662
Max PriceUS$118.00
SellUS$10,457,39422 Aug 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares87,643
Max PriceUS$119.80
SellUS$4,888,93322 Aug 19
Jon Moeller
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares40,977
Max PriceUS$119.80
SellUS$207,13822 Aug 19
Valarie Sheppard
EntityIndividual
Shares1,729
Max PriceUS$119.80
SellUS$829,39022 Aug 19
Marc Pritchard
EntityIndividual
Shares6,923
Max PriceUS$119.80
SellUS$1,143,03222 Aug 19
Stephen Bishop
EntityIndividual
Shares9,541
Max PriceUS$119.80
SellUS$897,07822 Aug 19
Kathleen Fish
EntityIndividual
Role
Chief Technology Officer
Chief Research
Shares7,488
Max PriceUS$119.80
SellUS$836,57822 Aug 19
Fama Francisco
EntityIndividual
Shares6,983
Max PriceUS$119.80
SellUS$238,63722 Aug 19
Mary Grabowski
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,000
Max PriceUS$119.80
SellUS$1,129,01522 Aug 19
Carolyn Tastad
EntityIndividual
Role
Head of Sales
Group President of North America & Chief Sales Officer
Shares9,424
Max PriceUS$119.80
SellUS$1,180,29022 Aug 19
Deborah Majoras
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares9,852
Max PriceUS$119.80
SellUS$836,57822 Aug 19
Shailesh Jejurikar
EntityIndividual
Shares6,983
Max PriceUS$119.80
SellUS$1,822,75521 Aug 19
Gary Coombe
EntityIndividual
Shares15,265
Max PriceUS$119.80
SellUS$1,239,71221 Aug 19
Mary Ferguson-McHugh
EntityIndividual
Role
Senior Key Executive
Chief Executive Officer of Family Care and P&G Ventures
Shares10,348
Max PriceUS$119.80
SellUS$904,02721 Aug 19
R. Keith
EntityIndividual
Shares7,546
Max PriceUS$119.80
SellUS$7,480,37310 May 19
Trian Fund Management, L.P.
EntityCompany
Shares71,500
Max PriceUS$104.62
SellUS$148,40006 May 19
Juan Posada
EntityIndividual
Shares1,400
Max PriceUS$106.00
SellUS$147,70003 May 19
Juan Posada
EntityIndividual
Shares1,400
Max PriceUS$105.50
SellUS$1,015,94603 May 19
Shailesh Jejurikar
EntityIndividual
Shares9,645
Max PriceUS$105.33
SellUS$421,29701 May 19
Carolyn Tastad
EntityIndividual
Role
Head of Sales
Group President of North America & Chief Sales Officer
Shares3,980
Max PriceUS$105.85
SellUS$148,40001 May 19
Juan Posada
EntityIndividual
Shares1,400
Max PriceUS$106.00
SellUS$699,46701 May 19
Jeffery Schomburger
EntityIndividual
Shares6,595
Max PriceUS$106.06
SellUS$88,72201 May 19
R. Keith
EntityIndividual
Shares837
Max PriceUS$106.00
SellUS$148,05030 Apr 19
Juan Posada
EntityIndividual
Shares1,400
Max PriceUS$105.75
SellUS$87,88529 Apr 19
R. Keith
EntityIndividual
Shares837
Max PriceUS$105.00
SellUS$173,20525 Apr 19
R. Keith
EntityIndividual
Shares1,674
Max PriceUS$103.47
SellUS$635,19725 Apr 19
Deborah Majoras
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares6,161
Max PriceUS$103.10
SellUS$147,16704 Mar 19
Carolyn Tastad
EntityIndividual
Role
Head of Sales
Group President of North America & Chief Sales Officer
Shares1,493
Max PriceUS$98.57
SellUS$325,28604 Mar 19
Mary Ferguson-McHugh
EntityIndividual
Role
Senior Key Executive
Chief Executive Officer of Family Care and P&G Ventures
Shares3,300
Max PriceUS$98.57
SellUS$478,95904 Mar 19
Jeffery Schomburger
EntityIndividual
Shares4,859
Max PriceUS$98.57
SellUS$317,79504 Mar 19
Jon Moeller
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares3,224
Max PriceUS$98.57
SellUS$227,79904 Mar 19
Deborah Majoras
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares2,311
Max PriceUS$98.57
SellUS$298,37604 Mar 19
R. Keith
EntityIndividual
Shares3,027
Max PriceUS$98.57
SellUS$123,74825 Feb 19
Valarie Sheppard
EntityIndividual
Shares1,236
Max PriceUS$100.12
SellUS$99,94925 Feb 19
Juan Posada
EntityIndividual
Shares998
Max PriceUS$100.40
SellUS$99,75022 Feb 19
Juan Posada
EntityIndividual
Shares1,000
Max PriceUS$99.75
SellUS$100,11021 Feb 19
Juan Posada
EntityIndividual
Shares1,000
Max PriceUS$100.11
SellUS$49,37520 Feb 19
Juan Posada
EntityIndividual
Shares500
Max PriceUS$98.75
SellUS$119,769,27815 Feb 19
Trian Fund Management, L.P.
EntityCompany
Shares1,208,754
Max PriceUS$99.18
SellUS$99,93607 Feb 19
Valarie Sheppard
EntityIndividual
Shares1,026
Max PriceUS$97.40
SellUS$428,78904 Feb 19
Jeffery Schomburger
EntityIndividual
Shares4,395
Max PriceUS$97.56
SellUS$100,02904 Dec 18
Juan Posada
EntityIndividual
Shares1,068
Max PriceUS$93.66
SellUS$99,98903 Dec 18
Juan Posada
EntityIndividual
Shares1,074
Max PriceUS$93.10
SellUS$99,93203 Dec 18
Valarie Sheppard
EntityIndividual
Shares1,075
Max PriceUS$92.96

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Taylor (61yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: US$20.50m
  • Carolyn Tastad (58yo)

    Group President of North America & Chief Sales Officer

    • Tenure: 0.4yrs
    • Compensation: US$5.99m
  • Jon Moeller (55yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$9.48m
  • Mary Ferguson-McHugh (59yo)

    Chief Executive Officer of Family Care and P&G Ventures

    • Tenure: 3.8yrs
    • Compensation: US$5.70m
  • Debbie Majoras (55yo)

    Chief Legal Officer & Secretary

    • Tenure: 9.8yrs
    • Compensation: US$5.43m
  • Laura Becker

    President of Global Business Services

    • Tenure: 0yrs
  • Kathy Fish (62yo)

    Chief Research

    • Tenure: 5.8yrs
  • Javier Polit

    Chief Information Officer

    • Tenure: 2.6yrs
  • Tracey Grabowski (51yo)

    Chief Human Resources Officer

    • Tenure: 1.3yrs
  • Craig Buchholz

    Chief Communications Officer & VP of Communications

    • Tenure: 1.8yrs

Board Members

  • Frank Blake (70yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$285.00k
  • Meg Whitman (63yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$285.00k
  • Terry Lundgren (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$305.00k
  • Jim McNerney (70yo)

    Lead Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$315.00k
  • Scott Cook (67yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$300.00k
  • Pat Woertz (66yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$310.00k
  • Joe Jimenez (59yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$285.00k
  • Bray Braly (58yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$300.00k
  • David Taylor (61yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: US$20.50m
  • Jon Moeller (55yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$9.48m

Company Information

The Procter & Gamble Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Procter & Gamble Company
  • Ticker: PG
  • Exchange: NYSE
  • Founded: 1837
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$304.968b
  • Shares outstanding: 2.49b
  • Website: https://www.pginvestor.com

Number of Employees


Location

  • The Procter & Gamble Company
  • One Procter & Gamble Plaza
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0NOFLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
PGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
PGBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
PGSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
PRGDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PGSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
PRGXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
PGBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
PGWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
PGBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REP 1 COM (USD)ARARSMar 2000
PGCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLMay 2011

Biography

The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 23:43
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.