Procter & Gamble Company logged a -2.0% change during today's afternoon session, and is now trading at a price of $147.48 per share. The S&P 500 index moved -0.8% and the Nasdaq posted a -0.8% change. PG's trading volume is 3,669,046 compared to the stock's average volume of 6,592,590.
Shares of Procter & Gamble Company have a 50-day average price of $147.6126 as of January 2022. The Procter & Gamble Company provides branded consumer packaged goods worldwide. The large-cap Consumer Defensive company has 106,000 full time employees and is based in Cincinnati, OH. Procter & Gamble Company has returned a 2.1% dividend yield over the last 12 months.
The Company Has a Steady Stream of Strong Cash Flows with an Upwards Trend:
| 2019-06-30 | 2020-06-30 | 2021-06-30 | 2022-06-30 | |
|---|---|---|---|---|
| Revenue (MM) | $67,684 | $70,950 | $76,118 | $80,187 |
| Revenue Growth | n/a | 4.83% | 7.28% | 5.35% |
| Gross Margins | 48.6% | 50.3% | 51.2% | 47.4% |
| Gross Margins Growth | n/a | 3.5% | 1.79% | -7.42% |
| Operating Margins | 20.4% | 22.1% | 23.6% | 22.2% |
| Operating Margins Growth | n/a | 8.33% | 6.79% | -5.93% |
| Earnings Per Share | $1.43 | $4.96 | $5.5 | $5.81 |
| EPS Growth | n/a | 246.85% | 10.89% | 5.64% |
| Free Cash Flow (MM) | $11,895 | $14,330 | $15,584 | $13,567 |
| FCF Growth | n/a | 20.47% | 8.75% | -12.94% |
| Capital Expenditures (MM) | -$3,347 | -$3,073 | -$2,787 | -$3,156 |
| Net Debt / EBITDA | 1.46 | 0.96 | 1.04 | 1.15 |
Procter & Gamble Company Is Currently Fairly Valued:
Compared to the Consumer Defensive sector's average of 24.21, Procter & Gamble Company has a trailing twelve month P/E ratio of 27.1 and, according to its EPS guidance of 5.96, an expected P/E ratio of 24.7. Procter & Gamble Company's PEG ratio is 2.71 based on its 10.0% average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Procter & Gamble Company's P/B ratio is 7.9 compared to its sector average of 4.09. The company is likely overvalued in terms of its equity. In addition, the company's shares are currently trading 208.5% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 1-year average EPS * book value per share) = √(22.5 * 5.44 * 18.676) = $47.81
We believe the company's low debt levels and remarkably strong cash flow trends attenuate the high multiples of the company.
Procter & Gamble Company Is the Subject of Mixed Market Indicators:
22 analysts are following Procter & Gamble Company and have set target prices ranging from $105 to $170 per share. On average, they have given the company a rating of buy. At the current price of $147.48, PG is trading 0.81% away from its average analyst target price of $146.29 per share, implying an analyst consensus of little upside potential for the stock.
The company has a very low short interest since 0.5% of the company's shares are tied to short positions. Institutions own 66.2% of Procter & Gamble Company's shares, while the insider ownership rate stands at 0.12%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $31,975,022,584.
