Procter and Gamble (PG) stock: what's the sentiment?

6:47 pm ET, 18 Oct 2018

Procter & Gamble Company (PG) shares are trading at 80.88, down 0.31 %. The company is announcing its quarterly earnings results on Friday before the market opens.  What's driving Procter & Gamble stock price? What's PG stock price forecast?

Procter & Gamble is a leading consumer product manufacturer. The Company has decided to hike the prices of its products as U.S. consumer sentiment is improving. It plans to increase Pampers' price by around 4%.

Investors are showing great interest in the company because they feel that the restructuring efforts are yielding positive results. Price increases will also increase profitability.  On the other hand, some bearish investors think that the company’s revenue growth is slowing down.  The last quarter’s revenue rose 3% to $16.5 billion and earnings per share came at $0.94 compared to $0.85 for the same period last year. The full fiscal year 2018 revenue rose 3% to $66.8 billion.

The first quarter of the fiscal year 2019 results will be released before market open on October 19, 2018.  Analysts expect the company to earn $1.10 per share on revenue of $16.52 billion. The company beat analyst estimates in the previous two quarters.

What is the sentiment towards the PG stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is neutral. 

Over the last month, Procter & Gamble Company (PG) returned -1.37%.

Procter & Gamble Company (PG) average analyst price target ($83.48) is 1.62% above its current price ($82.15).

For the latest price and information on Procter & Gamble Company, please visit Finstead and search for "PG price" or "PG news".

Procter & Gamble Company (The) (PG) Stock Guide

Updated at: 10:27 am ET, 18 Sep 2020

Before we start: if you're looking for PG stock price, you can quickly find it out by visiting Finny and typing "PG quote". If you're looking for a quick scoop on PG stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "PG". You'll get all this info in one place. Or you can just type "PG news" to get the latest stock news.

Looking to buy or sell Procter & Gamble Company (The) (PG)? Interested in getting the full scoop on PG, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this PG stock guide, we'll address key questions about PG, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are PG earnings?
2. What is PG dividend?
3. What is PG dividend yield?
4. PG buy or sell? What is PG Finny Score?
5. What are the reasons to buy PG? Why should I buy PG stock?
6. What are the reasons to sell PG? Why should I sell PG stock?
7. What are PG key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are PG earnings?

PG trailing 12-month earnings per share (EPS) is $4.96.

2. What is PG dividend?

PG forward dividend is $3.16.

3. What is PG dividend yield?

PG forward dividend yield is 2.29%.

Analysis

4. PG buy or sell? What is PG Finny Score?

#{finnyScore:44}Our quantitative analysis shows 4 reasons to buy and 5 reasons to sell PG, resulting in Finny Score of 44.

5. What are the reasons to buy PG? Why should I buy PG stock?

Here are the reasons to buy PG stock:

  • After shedding more than 100 brands, P&G appears committed to investing behind its brands to reignite top-line growth and foster its retail relationships to drive store traffic for its retail partners (which supports one facet of its intangible asset moat source).
  • We’re encouraged by recent efforts to clean up the core business and forgo unprofitable sales, such as its commodified bathroom tissue lineup in Mexico.
  • As evidence of its cost edge, P&G increased core earnings at 4 times the level of sales in emerging markets in fiscal 2014 but 8 times sales in fiscal 2015 and 2016.
  • In February 2012, Procter & Gamble announced a five-year (fiscal 2012 through fiscal 2016) productivity and cost savings plan to reduce spending across all areas (supply chain, research & development, marketing and overheads). The company’s original 5-year cost of goods savings target was $6 billion. It exceeded the target and delivered $7.2 billion in savings.
  • P&G is known for its impressive product development capabilities and marketing prowess. In order to sustain its brand appeal, the company focuses on innovation and expansion of its product portfolio, supported by strong marketing and commercialization. The company spends around $14 billion annually on marketing.
  • The company focuses on improving its product portfolio through strategic initiatives which enable it to concentrate on its fast-growing businesses. For example, in June 2012, the company divested its snacks unit, Pringles, to Kellogg Company to focus more on beauty and personal care products. In fiscal 2013, P&G divested its underperforming bleach business in Italy and Portugal and the Braun household appliances business.
  • Procter & Gamble generates strong free cash flow annually. The cash flow allows management the opportunity to invest in product innovations, acquisitions and brand development in addition to regularly paying dividends and repurchasing shares. The company has consistently increased its dividend.
  • PG quarterly revenue growth was 3.50%, higher than the industry and sector average revenue growth (0.58% and 1.12%, respectively). See PG revenue growth chart.
  • PG forward dividend yield is 2.29%, higher than the industry (0.63%) and sector (0.62%) forward dividend yields. See PG forward dividend chart.
  • PG PEG ratio (P/E adjusted for growth) is 3.32, which is low compared to its industry peers’ PEG ratios. See PG PEG chart.
  • PG cash to debt ratio is 0.45, higher than the average industry (0.11) and sector (0.11) cash to debt ratio. See PG cash to debt chart.

6. What are the reasons to sell PG? Why should I sell PG stock?

Let's look at the reasons to sell PG stock (i.e., the bear case):

  • Despite the decline in oil prices, the firm and its peers are still contending with increased transportation costs as a result of truck driver shortages, which may constrain potential profit gains.
  • Foreign exchange movements can significantly weigh on P&G's bottom line, given that the firm makes and sells its fare in different locations.
  • P&G has called out that the competitive pressure resulting from local peers (as opposed to other globally branded players) in emerging markets has intensified, highlighting the importance of understanding each region on a detailed level.
  • The grooming segment also did not do well, with sales slumping 3% in fiscal 2017 and 3% in the first six months of fiscal 2018. Aggressive competitive activity, changes in grooming fashions and habits, and increased online competitors in some markets like the U.S. are hurting the performance. In fact, in the first six months of fiscal 2018, organic sales in the grooming segment declined 4%.
  • Despite modest economic recovery and improvement in consumer confidence in the United States, uncertainty persists. Though there has been moderate improvement in economic growth in the United States, consumers are increasing their spending only modestly, as a surge in job growth is yet to translate into significantly higher wages. High healthcare costs and still-tightened credit availability continue to hurt consumer discretionary spending in the United States.
  • PG stock price ($137.67) is close to the 52-week high ($138.79). Perhaps now is a good time to sell? See PG price chart.
  • PG profitability is declining. The YoY profit margin change was -9.37 percentage points. See PG profitability chart.
  • PG Price/Sales ratio is 4.85, which is high compared to its industry peers’ P/S ratios. See PG forward Price/Sales ratio chart.
  • PG short interest (days to cover the shorts) ratio is 2.22. The stock garners more short interest than the average industry, sector or S&P 500 stock. See PG short interest ratio chart.
  • PG Enterprise Value/Revenue multiple is 5.14, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See PG Enterprise Value/Revenue chart.

Key Stats

7. What are PG key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for PG:

Metrics PG
Price $137.68
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 2.29%
Industry Household & Personal Products
Sector Consumer Defensive
Number of Employees 92,000
Market Cap $344.02B
Forward P/E Ratio 23.99
Price/Book Ratio 4.85
Revenue (TTM) $70.95B
YoY Quarterly Revenue Growth 3.50%
Profit Margin 18.36%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us