Procter & Gamble Company (The)(PG) - Stock detail

Procter & Gamble Company (The)

US
PG
The Procter & Gamble Company(Listing date: 03/22/1950)

Procter & Gamble was incorporated in Ohio in 1905. The company is a global leader in the fast-moving consumer goods industry, focused on providing high-quality and valuable branded consumer packaged goods to consumers around the world. Its products are sold in more than 180 countries and regions primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, pharmacies, department stores, distributors, wholesalers, baby stores, professional beauty stores (including airport duty-free stores), high-frequency stores, electronics stores and professional channels. The company also sells products directly to consumers.

AI Value AnalystHold
Overall Rating6.3/10
Generated at:2026-03-04 16:37:12
Analysis based on 5 financial reports covering periods from 2024-12-31 to 2025-12-31, including quarterly data from Q1 2025 to Q2 2025. Data sources include company financial statements and market trading data. Analysis includes comprehensive assessment of financial condition, profitability, and valuation metrics.
Overview

Procter & Gamble is a global leader in branded consumer packaged goods with strong brand portfolio and market positions. The company demonstrates exceptional profitability with premium margins and efficient capital allocation, while maintaining moderate financial leverage with some liquidity constraints. Current valuation appears fair relative to historical multiples and sector comparables.

Valuation
5/10
Profitability
8/10
Financial health
6/10
Operation Advice
  • Hold position with 12-month target of $165-$170 (4-7% upside plus dividend).
  • Maintain stop-loss at $145 (-8.4% from current price).
  • Consider buying if price breaks above $175.
  • Suitable for risk-averse investors seeking stable returns with moderate growth potential.

Valuation

P/E TTM
22.71
P/E LYR
21.81
P/B MRQ
7.04
P/S TTM
--
AI Analysis
  • PG trades at a premium to consumer staples sector averages with current P/E of 22.71 (TTM) and 21.81 (forward), justified by superior margins and brand strength. Fair value range estimated at $155-$165 based on 22-23x forward earnings, with current price at $158.30 representing fair valuation relative to fundamentals.
  • P/E (TTM): 22.71
  • P/E (Forward): 21.81
  • P/B: 7.04
  • P/S: 8.25
  • PG trades at a premium to consumer staples sector averages (sector P/E ~19-20)
  • The premium is justified by superior margins, brand strength, and dividend reliability
  • Historical analysis suggests PG typically trades between 20-25x earnings in stable markets
  • Fair Value Range: $155-$165 based on 22-23x forward earnings
  • Current Price Assessment: At $158.30, PG trades near the midpoint of its historical valuation range, suggesting fair valuation relative to fundamentals
Valuation trend

Profitability

ROE TTM
17.27%
Net margin
20.43%
Gross margin
51.29%
Total revenue
44.59B
AI Analysis
  • PG demonstrates exceptional profitability with gross margin of 51.29% and net margin of 20.43%, reflecting premium brand positioning and pricing power. ROE of 17.27% and ROA of 7.18% outperform industry averages, with recent quarterly showing 5.60% YoY net income growth.
  • Gross margin of 51.29% and net margin of 20.43% (Q2 2025) reflect premium brand positioning and pricing power
  • ROE of 17.27% and ROA of 7.18% outperform industry averages, indicating efficient capital allocation
  • Recent quarterly performance shows 5.60% YoY net income growth (Q2 2025) and 19.98% growth (Q1 2025), demonstrating improving momentum
  • Revenue Stability: 2.24% revenue growth (Q2 2025) reflects steady demand despite economic headwinds
  • The company's profitability profile remains robust, with consistent margin maintenance across economic cycles characteristic of consumer defensive leaders
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--24.10%31.23%9.02%17.27%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue43.62B63.40B84.28B22.39B44.59B

Financial health

Debt/Asset
58.11%
Current ratio
0.72
Quick ratio
0.51
Cash ratio
0.51
AI Analysis
  • PG exhibits mixed financial health with moderate 58.11% debt-to-equity ratio but potential liquidity constraints (current ratio 0.72, quick ratio 0.51). Strong operating cash flows and ROA of 7.18% demonstrate effective asset utilization and cash generation capabilities.
  • Debt Management: 58.11% debt-to-equity ratio indicates moderate leverage, typical for large-cap consumer staples companies
  • Liquidity Position: Current ratio of 0.72 and quick ratio of 0.51 suggest potential liquidity constraints, though this is common for companies with efficient cash conversion cycles
  • Asset Efficiency: ROA of 7.18% demonstrates effective asset utilization despite the capital-intensive nature of the business
  • Cash Flow Generation: Strong operating cash flows (evidenced by consistent dividend payments) offset the relatively weak liquidity ratios
  • The balance sheet structure supports ongoing operations and dividend sustainability, though liquidity metrics warrant monitoring given current market volatility
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset58.05%57.27%58.25%58.03%58.11%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.760.710.700.710.72