P&G Stock Analysis, Valuation (NYSE:PG)
PG Stock Analysis
Take a look at Amigobulls P&G stock analysis video. This is our analyst opinion covering the buy and sell arguments for PG stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Procter and Gamble Stock Rating 3.7/5
Amigobulls PG stock analysis takes into account various financial ratios like relative valuation, P&G revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check P&G dividend performance. P&G valuation forms a crucial part of our stock analysis. P&G stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy PG stock?
- The TTM operating margin was good at 21.4% for P&G.
- LTM Net margins were good at 15.3% for P&G.
- PG stock is trading at an earnings multiple of 19.8 which is better than the industry average of 23.4.
- P&G has an attractive ROIC (Return on Invested Capital) of 12.6%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for P&G at 18.4%.
- The company has a good Free Cash Flow (FCF) margin of 17.2%.
Should you sell PG stock?
- Sales declined by -4.6% annually over the last 5 years.
- The company is trading at a price to sales multiple of 3.2, which is overvalued in comparison to the Soap and Cleaning Preparations industry average multiple of 1.7.
Investors can make use of the Amigobulls P&G stock analysis to ascertain how PG stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.
Among the financials of the company, P&G revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.