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 Rating6/10
Generated at:2026-04-17 17:42:40
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Market price data as of 2026-04-17 close. Data includes company financial statements, valuation multiples, and profitability metrics. Analysis uses trailing twelve-month (TTM) framework for valuation calculations. Data completeness is good with consistent quarterly reporting across the analyzed periods.
Overview

Procter & Gamble (PG) is a global leader in branded consumer packaged goods with a diversified portfolio across multiple segments. The company exhibits strong profitability with excellent margins and returns, but faces mixed financial conditions with low liquidity ratios and moderate leverage. Valuation appears full with the stock trading approximately at fair value, making it suitable for defensive investors seeking stability and dividends rather than significant capital appreciation.

Valuation
4/10
Profitability
8/10
Financial health
6/10
Operation Advice
  • Hold existing positions.
  • The stock is trading near fair value with limited margin of safety for new purchases.
  • Consider accumulating on price dips below $130 for better valuation entry points.
  • Focus on the long-term dividend growth trajectory rather than short-term capital appreciation.
  • Monitor liquidity ratios and debt levels as part of ongoing risk assessment.

Valuation

P/E TTM
22.71
P/E LYR
21.81
P/B MRQ
7.04
P/S TTM
--
AI Analysis
  • The stock is trading approximately at fair value with a P/E ratio of ~22.71 and P/B ratio of 7.04. Using TTM EPS of $6.47 and a fair value P/E range of 20x-24x yields a valuation range of $129.40 to $155.28, with a target price of $142.34. The current price of $146.93 is close to this target, indicating full valuation without significant margin of safety.
  • Current market price is $146.93 as of 2026-04-17 close
  • Trailing twelve-month (TTM) P/E is 22.71 and forward P/E is 21.81
  • P/B ratio is 7.04, which is high but supported by superior ROE
  • P/S ratio is 7.66, indicating market prices sales at a significant premium
  • For a mature, low-growth defensive stock like PG, a P/E in the low-to-mid 20s is typical
  • The stock does not appear cheap on absolute multiples
  • Using TTM EPS of $6.47 and 20x-24x multiple range yields fair value range of $129.40 to $155.28
  • Fundamental target price is $142.34 (midpoint of fair value range)
  • Current price of $146.93 sits just above the midpoint, trading approximately at fair value
Valuation trend

Profitability

ROE TTM
17.27%
Net margin
20.43%
Gross margin
51.29%
Total revenue
44.59B
AI Analysis
  • Profitability remains robust with strong revenue and earnings growth, high margins, and positive trends. Latest quarterly revenue of $44.59B grew 2.24% YoY while net income of $9.07B grew 5.60% YoY, demonstrating margin improvement. Gross margins consistently above 51% and net margins near or above 20% underscore pricing power and brand strength.
  • Latest quarterly revenue (2025-12-31) of $44.59B grew 2.24% year-over-year (YoY)
  • Net income for the same quarter was $9.07B, up 5.60% YoY, outpacing revenue growth
  • Q1 2025 (2025-09-30) showed net income surging 19.98% YoY on 2.99% revenue increase
  • Five-quarter data sequence shows consistent profitability
  • High and stable gross margins consistently above 51%
  • Net margins consistently near or above 20%
  • Underscores the company's pricing power and brand strength in defensive consumer staples sector
  • Demonstrates significant earnings leverage during certain periods
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
  • Financial health shows a mixed picture with low liquidity ratios (current ratio 0.72, quick ratio 0.51) but strong profitability metrics (ROE 17.27%, ROA 7.18%). Debt-to-asset ratio of 58.11% indicates moderate financial leverage. Consistently high gross margin of 51.29% and net margin of 20.43% highlight operational efficiency.
  • Current ratio of 0.72 and quick ratio of 0.51 are notably low, indicating potential challenges covering short-term obligations
  • Low liquidity ratios are common for large, efficient operators with strong cash flows but warrant monitoring
  • Debt-to-asset ratio of 58.11% indicates moderate level of financial leverage
  • Moderate leverage is manageable for mature company with stable cash flows but increases financial risk
  • Return on Equity (ROE) of 17.27% and Return on Assets (ROA) of 7.18% are strong
  • Demonstrates effective use of shareholder capital and assets to generate profits
  • Consistently high gross margin of 51.29% in latest quarter
  • Net margin of 20.43% highlights powerful brand pricing and operational efficiency
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset58.05%57.27%58.25%58.03%58.11%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.760.710.700.710.72