PROCTER & GAMBLE Co (NYSE: PG)

Sector: Consumer Defensive Industry: Household & Personal Products CIK: 0000080424
Market Cap 414.83 Bn
P/B 7.93
P/E 42.55
P/S 6.21
ROIC (Qtr) 17.97
Div Yield % 2.42
Rev 1y % (Qtr) 1.49
Total Debt (Qtr) 36.64 Bn
Debt/Equity (Qtr) 0.69
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About

Investment thesis

Bull case

  • Strong operating cash flow of 19.07B provides robust 0.52x coverage of total debt 36.64B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 19.07B provides exceptional 247.66x coverage of minority interest expenses 77M, showing strong core operations.
  • Operating cash flow of 19.07B provides exceptional 22.54x coverage of interest expenses 846M, showing strong debt service capability.
  • Operating cash flow of 19.07B provides strong 38.37x coverage of stock compensation 497M, indicating sustainable incentive practices.
  • Robust free cash flow of 14.85B exceeds capital expenditure of 4.22B by 3.52x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 19.07B barely covers its investment activities of (4.55B), with a coverage ratio of -4.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 19.07B provides thin coverage of dividend payments of (10.08B) with a -1.89 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 10.82B provide limited coverage of acquisition spending of (10M), which is -1082.50x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High financing cash flow of (14.16B) relative to working capital of (10.11B), which is 1.40x suggests concerning dependence on external funding for operational needs.
  • Retained earnings of 133.98B provide limited buffer against comprehensive income items of (12.11B), which is -11.07x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Household & Personal Products
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PG PROCTER & GAMBLE Co 414.83 Bn 42.55 6.21 36.64 Bn
2 UL Unilever Plc 193.58 Bn 30.01 3.20 -
3 CL Colgate Palmolive Co 84.55 Bn 36.65 5.53 8.42 Bn
4 EL Estee Lauder Companies Inc 39.92 Bn -224.28 2.72 9.39 Bn
5 KMB Kimberly Clark Corp 35.68 Bn 17.66 2.17 7.17 Bn
6 KVUE Kenvue Inc. 35.52 Bn 31.74 2.30 8.97 Bn
7 CHD Church & Dwight Co Inc /De/ 24.67 Bn 56.44 4.27 2.21 Bn
8 CLX Clorox Co /De/ 16.06 Bn 24.25 2.82 3.22 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.49 1.52
EV to Cash from Ops. EV/CFO 29.92 9.62
EV to Debt EV to Debt 12.14 4.49
EV to EBIT EV/EBIT 32.42 35.23
EV to EBITDA EV/EBITDA 27.46 6.09
EV to Free Cash Flow [EV/FCF] EV/FCF 39.89 29.01
EV to Market Cap EV to Market Cap 1.07 -1.51
EV to Revenue EV/Rev 6.66 2.12
Price to Book Value [P/B] P/B 7.93 -15.76
Price to Earnings [P/E] P/E 42.55 10.78
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.63 8.96
Dividend Payout Ratio % Div Payout % (Qtr) 60.50 13.25
Dividend per Basic Share Div per Share (Qtr) 4.18 0.96
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 65.75 54.85
Interest Coverage Int. cover (Qtr) 25.30 2.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -20.70 -97.44
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.82 9.62
Dividend Growth (1y) % Div 1y % (Qtr) 38.39 2.92
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5.58 -192.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.40 -117.43
EBIT Growth (1y) % EBIT 1y % (Qtr) 5.51 -176.47
EBT Growth (1y) % EBT 1y % (Qtr) 6.21 -232.87
EPS Growth (1y) % EPS 1y % (Qtr) 7.30 -139.25
FCF Growth (1y) % FCF 1y % (Qtr) -4.03 28.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.21 -1.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.82
Cash Payout Ratio Cash Payout (Qtr) 0.43 0.19
Cash Ratio Cash Ratio (Qtr) 0.29 0.75
Current Ratio Curr Ratio (Qtr) 0.72 2.31
Debt to Equity Ratio Debt/Equity (Qtr) 0.69 1.11
Interest Cover Ratio Int Coverage (Qtr) 25.30 2.74
Times Interest Earned Times Interest Earned (Qtr) 25.30 2.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.60 -32.80
EBIT Margin % EBIT Margin % (Qtr) 25.11 -37.24
EBT Margin % EBT Margin % (Qtr) 24.11 -40.95
Gross Margin % Gross Margin % (Qtr) 50.70 50.18
Net Profit Margin % Net Margin % (Qtr) 19.30 -43.16