P&G Stock Analysis, Valuation (NYSE:PG)

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$92.24 $0.4 (0.43%) PG stock closing price Sep 22, 2017 (Closing)
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P&G
Updated on : Sep 22, 2017
previous close
PG 92.2 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Soap and Cleaning Preparations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-5.1%
Operating Profit
Operating Margin:
21.5%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$3.69B
Net Income:
$2.22B
Dividend Yield
PG dividend yield:
2.93%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PG PS :
3.8
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.1%
Return on Equity:
27.3%
Free Cash Flow Margin:
16.8%
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PG Stock Analysis

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View P&G stock analysis video. This is our analyst opinion covering the buy and sell arguments for PG stock.

Procter and Gamble Stock Rating 3.4/5

Our P&G stock opinion is based on fundamentals of the company. This P&G stock analysis is based on latest 2017 Q4 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy PG stock?

  • P&G's average operating margin of 21.5% was exceptional.
  • Net margins came in at average 23.6% for P&G over the last twelve months.
  • The company has an operating cash flow which is 1.7 times the net income.
  • P&G has an attractive ROIC (Return on Invested Capital) of 13.1%
  • P&G has a good Return On Equity (ROE) of 27.3%.
  • P&G has a healthy FCF (Free Cash Flow) margin of 16.8%.

Should you sell PG stock?

  • P&G sales shrank by -0.1% year-over-year in 2017 Q4.
  • Revenue declined at a CAGR of -5.1% over the last 5 years.
  • PG stock is trading at a PS multiple of 3.8, which is a negative when compared to the Soap and Cleaning Preparations industry average multiple of 1.6.

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