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

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$81.05 $0.21 (0.26%) PG stock closing price Feb 23, 2018 (Closing)
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P&G
Updated on : Feb 23, 2018
previous close
PG 81.1 (0%)
S&P 500 2747.3 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Soap and Cleaning Preparations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-4.6%
Operating Profit
Operating Margin:
21.4%
Sector Average:
11.2%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$3.68B
Net Income:
$2.5B
Dividend Yield
PG dividend yield:
3.38%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PG PS :
3.2
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.6%
Return on Equity:
18.4%
Free Cash Flow Margin:
17.2%
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PG Stock Analysis

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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.

Comments on this video and P&G stock

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.