Is Procter Gamble Stock a Good Investment?

Procter Gamble Investment Advice

  PG
To provide specific investment advice or recommendations on Procter Gamble stock, we recommend investors consider the following general factors when evaluating Procter Gamble. This will help you to make an informed decision on whether to include Procter Gamble in one of your diversified portfolios:
  • Examine Procter Gamble's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Procter Gamble's leadership team and their track record. Good management can help Procter Gamble navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Household Products space and any emerging trends that could impact Procter Gamble's business and its evolving consumer preferences.
  • Compare Procter Gamble's performance and market position to its competitors. Analyze how Procter Gamble is positioned in terms of product offerings, innovation, and market share.
  • Check if Procter Gamble pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Procter Gamble's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Procter Gamble stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Procter Gamble is a good investment.
 
Sell
 
Buy
Cautious Hold
Macroaxis provides advice on Procter Gamble to complement and cross-verify current analyst consensus on Procter Gamble. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Procter Gamble is not overpriced, please check all Procter Gamble fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Procter Gamble has a price to earning of 25.21 X, we recommend you to check out Procter Gamble market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Moves indifferently to market movesDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Procter Gamble Stock

Researching Procter Gamble's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 69.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 5.81. Procter Gamble last dividend was issued on the 18th of October 2024. The entity had 2:1 split on the 21st of June 2004.
To determine if Procter Gamble is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Procter Gamble's research are outlined below:
Procter Gamble generated a negative expected return over the last 90 days
Procter Gamble reports 33.37 B of total liabilities with total debt to equity ratio (D/E) of 0.74, which is normal for its line of buisiness. Procter Gamble has a current ratio of 0.61, implying that it has not enough working capital to pay out debt commitments in time. Note however, debt could still be an excellent tool for Procter to invest in growth at high rates of return.
Procter Gamble has a strong financial position based on the latest SEC filings
About 69.0% of Procter Gamble shares are owned by institutional investors
On 15th of November 2024 Procter Gamble paid $ 1.0065 per share dividend to its current shareholders
Latest headline from bleepingcomputer.com: Blue Yonder SaaS giant breached by Termite ransomware gang

Procter Gamble Quarterly Cost Of Revenue

10.42 Billion

Procter Gamble uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Procter Gamble. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Procter Gamble's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
19th of April 2024
Upcoming Quarterly Report
View
26th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
26th of July 2024
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
30th of June 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Procter Gamble's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Procter Gamble's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2000-10-31
2000-09-300.50.44-0.0612 
2012-10-25
2012-09-300.961.060.110 
2019-10-22
2019-09-301.241.370.1310 
2008-08-05
2008-06-300.780.920.1417 
2020-07-30
2020-06-301.011.160.1514 
2020-10-20
2020-09-301.421.630.2114 

Procter Gamble Target Price Consensus

Procter target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Procter Gamble's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   28  Strong Buy
Most Procter analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Procter stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Procter Gamble, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Procter Gamble Target Price Projection

Procter Gamble's current and average target prices are 173.82 and 155.36, respectively. The current price of Procter Gamble is the price at which Procter Gamble is currently trading. On the other hand, Procter Gamble's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Procter Gamble Market Quote on 9th of December 2024

Low Price173.76Odds
High Price176.73Odds

173.82

Target Price

Analyst Consensus On Procter Gamble Target Price

Low Estimate141.38Odds
High Estimate172.45Odds

155.36

Historical Lowest Forecast  141.38 Target Price  155.36 Highest Forecast  172.45
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Procter Gamble and the information provided on this page.

Procter Gamble Analyst Ratings

Procter Gamble's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Procter Gamble stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Procter Gamble's financials, market performance, and future outlook by experienced professionals. Procter Gamble's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Procter Gamble's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Procter Gamble is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Procter Gamble backward and forwards among themselves. Procter Gamble's institutional investor refers to the entity that pools money to purchase Procter Gamble's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
T. Rowe Price Associates, Inc.2024-09-30
22 M
Legal & General Group Plc2024-09-30
20.7 M
Bank Of New York Mellon Corp2024-09-30
20 M
Franklin Resources Inc2024-09-30
19 M
Fisher Asset Management, Llc2024-09-30
18.4 M
Royal Bank Of Canada2024-09-30
17.3 M
Ameriprise Financial Inc2024-09-30
16.4 M
Charles Schwab Investment Management Inc2024-09-30
16.4 M
Goldman Sachs Group Inc2024-09-30
16 M
Vanguard Group Inc2024-09-30
228.2 M
Blackrock Inc2024-06-30
159.1 M
Note, although Procter Gamble's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Procter Gamble's market capitalization trends

The company currently falls under 'Mega-Cap' category with a market capitalization of 409.35 B.

Market Cap

217.62 Billion

Procter Gamble's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.25  0.14 
Return On Capital Employed 0.21  0.20 
Return On Assets 0.12  0.07 
Return On Equity 0.30  0.18 
The company has Net Profit Margin (PM) of 0.17 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.28 %, which signifies that for every $100 of sales, it has a net operating income of $0.28.
Determining Procter Gamble's profitability involves analyzing its financial statements and using various financial metrics to determine if Procter Gamble is a good buy. For example, gross profit margin measures Procter Gamble's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Procter Gamble's profitability and make more informed investment decisions.

Evaluate Procter Gamble's management efficiency

Procter Gamble has Return on Asset (ROA) of 0.106 % which means that for every $100 of assets, it generated a profit of $0.106. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.2877 %, which means that it produced $0.2877 on every 100 dollars invested by current stockholders. Procter Gamble's management efficiency ratios could be used to measure how well Procter Gamble manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to 0.14. The current Return On Capital Employed is estimated to decrease to 0.20. At this time, Procter Gamble's Other Assets are most likely to increase significantly in the upcoming years. The Procter Gamble's current Asset Turnover is estimated to increase to 0.98, while Non Current Assets Total are projected to decrease to roughly 66.5 B.
Last ReportedProjected for Next Year
Book Value Per Share 21.42  22.49 
Tangible Book Value Per Share(5.00)(5.25)
Enterprise Value Over EBITDA 17.97  10.30 
Price Book Value Ratio 7.64  3.86 
Enterprise Value Multiple 17.97  10.30 
Price Fair Value 7.64  3.86 
Enterprise Value230.7 B242.2 B
At Procter Gamble, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Dividend Yield
0.0232
Forward Dividend Yield
0.0232
Forward Dividend Rate
4.03
Beta
0.414

Basic technical analysis of Procter Stock

As of the 9th of December, Procter Gamble holds the Coefficient Of Variation of (176,283), risk adjusted performance of 0.0021, and Variance of 0.9802. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Procter Gamble, as well as the relationship between them. Please check Procter Gamble market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Procter Gamble is priced some-what accurately, providing market reflects its current price of 173.82 per share. Given that Procter Gamble has information ratio of (0.14), we recommend you to check out Procter Gamble's recent market performance to make sure the company can sustain itself at a future point.

Procter Gamble's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Procter Gamble insiders, such as employees or executives, is commonly permitted as long as it does not rely on Procter Gamble's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Procter Gamble insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Procter Gamble's Outstanding Corporate Bonds

Procter Gamble issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Procter Gamble uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Procter bonds can be classified according to their maturity, which is the date when Procter Gamble has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Procter Gamble's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Procter Gamble's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Procter Gamble's intraday indicators

Procter Gamble intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Procter Gamble stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Procter Gamble Corporate Filings

F4
2nd of December 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
26th of November 2024
Other Reports
ViewVerify
30th of October 2024
Other Reports
ViewVerify
22nd of October 2024
Other Reports
ViewVerify
Procter Gamble time-series forecasting models is one of many Procter Gamble's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Procter Gamble's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Procter Stock media impact

Far too much social signal, news, headlines, and media speculation about Procter Gamble that are available to investors today. That information is available publicly through Procter media outlets and privately through word of mouth or via Procter internal channels. However, regardless of the origin, that massive amount of Procter data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Procter Gamble news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Procter Gamble relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Procter Gamble's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Procter Gamble alpha.

Procter Gamble Historical Investor Sentiment

Investor biases related to Procter Gamble's public news can be used to forecast risks associated with an investment in Procter. The trend in average sentiment can be used to explain how an investor holding Procter can time the market purely based on public headlines and social activities around Procter Gamble. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Procter Gamble's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Procter Gamble and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Procter Gamble news discussions. The higher the estimate score, the more favorable the investor's outlook on Procter Gamble.

Procter Gamble Corporate Directors

Amy ChangIndependent DirectorProfile
Nelson PeltzIndependent DirectorProfile
Francis BlakeIndependent DirectorProfile
Margaret WhitmanIndependent DirectorProfile
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Procter Gamble. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
For more detail on how to invest in Procter Stock please use our How to Invest in Procter Gamble guide.
You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Household Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Procter Gamble. If investors know Procter will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Procter Gamble listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.12)
Dividend Share
3.894
Earnings Share
5.81
Revenue Per Share
35.566
Quarterly Revenue Growth
(0.01)
The market value of Procter Gamble is measured differently than its book value, which is the value of Procter that is recorded on the company's balance sheet. Investors also form their own opinion of Procter Gamble's value that differs from its market value or its book value, called intrinsic value, which is Procter Gamble's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Procter Gamble's market value can be influenced by many factors that don't directly affect Procter Gamble's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Procter Gamble's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Procter Gamble is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Procter Gamble's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.