PG

Procter & Gamble

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Defensive

industry

Household & Personal Products

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/24/26

Business Summary

PG generates cash by selling everyday consumable household and personal care products with repeat purchase behavior and strong brand equity. Its moat is built on global scale, distribution dominance, and pricing power that supports a 30.50% operating margin. High ROIC of 19.00% reflects efficient reinvestment into brands that command shelf space and consumer loyalty. The model is simple but powerful: dominate essential categories, push incremental price increases, optimize supply chains, and return excess cash via dividends while maintaining balance sheet stability.

VALUATION

P/E

21.5

Market Cap ($M USD)

$337,351

Forward P/E

19.9

PEG

8.4

PRICE TO SALES

4.2

PRICE TO BOOK

6.5

EV / EBITDA

14.9

5-Year Average P/E

DIVIDEND

Yield

2.90%

Annual Payout

$4.23

Payout Ratio

60.50%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

6.00%

Financial Health & Profitability

Earnings Per Share

$6.90

Next Year EPS Growth Estimate

$7.30

Next Year Revenue Growth Estimate

2.70%

Return on Equity (ROE)

30.50%

Operating Margin

23.60%

Debt-to-Equity

0.7

Piotroski F-Score

6

Altman Z-Score

5.3

Return on Invested Capital (ROIC)

19.00%%

Current Ratio

0.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 21.5x earnings and 19.9x forward earnings, PG trades like a premium defensive compounder, yet the PEG Forward of 8.4 screams that growth is not keeping pace with valuation. The Altman Z-Score of 5.3 indicates very low bankruptcy risk, so balance sheet distress is not the issue; this is a stability story, not a turnaround. However, with EPS at 14.9 and next year’s estimate at $6.90, the earnings trajectory looks inconsistent relative to the multiple investors are paying. This is not a distressed mispricing—it’s a quality franchise priced for durability, but arguably expensive relative to its implied growth rate. The market is paying up for safety, not acceleration.

AI Exposure / Tech Reliance

PG operates in Consumer Defensive and Household & Personal Products, industries that are operationally scalable and data-driven but not technologically fragile. AI and automation primarily enhance supply chain efficiency, demand forecasting, and marketing precision rather than redefining the core product. That makes the company resilient to tech disruption but unlikely to experience AI-driven hypergrowth.

The Bull Case

A GARP investor can justify ownership based on capital efficiency and operational quality. ROIC at 19.00% against a 23.60% Debt/Equity ratio shows disciplined capital deployment with manageable leverage, while a 30.50% operating margin demonstrates powerful pricing power in staple categories. The Piotroski F-Score of 6 signals decent financial health without distress flags, and the 0.7 TTM yield combined with a 2.90% dividend per share underscores shareholder return commitment. Institutional Ownership at $165.73 alongside a Consensus Rating of 1.00% suggests strong professional conviction. This is a classic high-quality compounder with durable margins and steady capital returns, attractive for institutions seeking defensive ROIC-driven performance.

The Bear Case

The valuation is the core problem. A PEG Forward of 8.4 is extraordinarily high, implying growth expectations are misaligned with reality, and a Price/Book of 6.5 indicates investors are paying a substantial premium over accounting equity. Return on Equity at 2.70% is strikingly low relative to the 30.50% operating margin, raising questions about capital efficiency at the shareholder level. The Current Ratio of 0.7 suggests tight short-term liquidity, and Short % of Float at 6.00% shows a meaningful minority positioning for downside. Add in a payout structure where Dividend Per Share is 2.90% against a Payout Ratio of $4.23, and the capital allocation metrics appear inconsistent, reinforcing the idea that this is a richly priced defensive, not a value opportunity.

Market Sentiment & Smart Money

Short Interest %

1.00%

Analyst Consensus

2.02

Average Analyst Price Target

$165.73

Institutional Ownership %

70.40%

1-Year Beta

0.1

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

84.60%%

Distance to 52-Week Low

105.50%%