📊 PG Key Takeaways
Is PROCTER & GAMBLE Co (PG) a Good Investment?
Procter & Gamble demonstrates exceptional operational efficiency with a 25.2% operating margin and robust profitability (20.3% net margin), supported by strong cash generation with $8B free cash flow and 18% FCF margin. While revenue growth is modest at 0.3% YoY and near-term liquidity metrics are tight (0.72x current ratio), the company's fortress-like balance sheet with 0.48x debt/equity, excellent interest coverage of 15.9x, and consistent EPS growth of 8.1% YoY indicate solid financial health and ability to weather downturns.
Procter & Gamble shows high-quality fundamentals with strong operating and net margins, solid returns on capital, and robust free cash flow generation. Growth is modest rather than high, but earnings are still compounding faster than revenue, suggesting disciplined cost control and resilient brand economics. The balance sheet appears manageable overall, though weak current and quick ratios mean liquidity efficiency should be monitored closely.
Why Buy PROCTER & GAMBLE Co Stock? PG Key Strengths
- Exceptional operating margin of 25.2% with net margin of 20.3%, demonstrating pricing power and operational discipline
- Strong free cash flow generation of $8B with 18% FCF margin, providing substantial capital allocation flexibility
- Solid balance sheet with moderate leverage (0.48x debt/equity) and excellent interest coverage (15.9x), reducing financial risk
- Consistent EPS growth of 8.1% YoY despite flat revenue growth, indicating effective capital deployment and share buyback programs
- Strong ROE of 17% and ROA of 7.1%, demonstrating efficient capital utilization across the business
- Strong profitability with 25.2% operating margin and 20.3% net margin
- Robust cash generation with $8.01B in free cash flow and 18.0% FCF margin
- Manageable leverage supported by 15.9x interest coverage and moderate 0.48x debt/equity
PG Stock Risks: PROCTER & GAMBLE Co Investment Risks
- Stagnant revenue growth of only 0.3% YoY signals weak organic growth and potential market saturation in core categories
- Liquidity metrics below 1.0x (current ratio 0.72x, quick ratio 0.51x) indicate potential short-term liquidity constraints despite strong operating cash flow
- Significant long-term debt of $25.6B represents 48% of equity, which could limit financial flexibility in adverse business conditions
- No gross margin data available limits visibility into product cost inflation trends and pricing realization effectiveness
- Modest insider activity with only 14 Form 4 filings in 90 days may suggest management confidence concerns or limited share activity
- Revenue growth is very slow at just 0.3% YoY, limiting fundamental upside
- Current ratio of 0.72x and quick ratio of 0.51x indicate tight short-term liquidity
- Margin strength may be vulnerable if input costs rise or pricing power weakens
Key Metrics to Watch
- Revenue growth acceleration above 0% YoY to confirm market stabilization and emerging markets penetration
- Free cash flow sustainability above $8B annually to maintain dividend and capital allocation capacity
- Debt/equity ratio trend to ensure leverage remains below 0.5x amid potential investment needs
- Operating margin maintenance above 24% to confirm pricing power and cost control
- EPS growth continuation above 5% YoY to validate productivity improvements offsetting revenue headwinds
- Organic revenue growth and volume mix trends
- Free cash flow conversion and short-term liquidity ratios
PROCTER & GAMBLE Co (PG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PG Profit Margin, ROE & Profitability Analysis
PG vs Consumer Sector: How PROCTER & GAMBLE Co Compares
How PROCTER & GAMBLE Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is PROCTER & GAMBLE Co Stock Overvalued? PG Valuation Analysis 2026
Based on fundamental analysis, PROCTER & GAMBLE Co appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
PROCTER & GAMBLE Co Balance Sheet: PG Debt, Cash & Liquidity
PG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: PROCTER & GAMBLE Co's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.90 reflects profitable operations.
PG Revenue Growth, EPS Growth & YoY Performance
PG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $21.9B | $4.3B | $1.78 |
| Q1 2026 | $21.7B | $4.0B | $1.61 |
| Q3 2025 | $19.8B | $3.8B | $1.52 |
| Q2 2025 | $21.4B | $3.5B | $1.40 |
| Q1 2025 | $21.7B | $4.0B | $1.61 |
| Q3 2024 | $20.1B | $3.4B | $1.37 |
| Q2 2024 | $20.8B | $3.5B | $1.40 |
| Q1 2024 | $20.6B | $3.9B | $1.57 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PROCTER & GAMBLE Co Dividends, Buybacks & Capital Allocation
PG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for PROCTER & GAMBLE Co (CIK: 0000080424)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PG
What is the AI rating for PG?
PROCTER & GAMBLE Co (PG) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PG's key strengths?
Claude: Exceptional operating margin of 25.2% with net margin of 20.3%, demonstrating pricing power and operational discipline. Strong free cash flow generation of $8B with 18% FCF margin, providing substantial capital allocation flexibility. ChatGPT: Strong profitability with 25.2% operating margin and 20.3% net margin. Robust cash generation with $8.01B in free cash flow and 18.0% FCF margin.
What are the risks of investing in PG?
Claude: Stagnant revenue growth of only 0.3% YoY signals weak organic growth and potential market saturation in core categories. Liquidity metrics below 1.0x (current ratio 0.72x, quick ratio 0.51x) indicate potential short-term liquidity constraints despite strong operating cash flow. ChatGPT: Revenue growth is very slow at just 0.3% YoY, limiting fundamental upside. Current ratio of 0.72x and quick ratio of 0.51x indicate tight short-term liquidity.
What is PG's revenue and growth?
PROCTER & GAMBLE Co reported revenue of $44.6B.
Does PG pay dividends?
PROCTER & GAMBLE Co pays dividends, with $5,093.0M distributed to shareholders in the trailing twelve months.
Where can I find PG SEC filings?
Official SEC filings for PROCTER & GAMBLE Co (CIK: 0000080424) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PG's EPS?
PROCTER & GAMBLE Co has a diluted EPS of $3.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, PROCTER & GAMBLE Co has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PG stock overvalued or undervalued?
Valuation metrics for PG: ROE of 17.0% (sector avg: 18%), net margin of 20.3% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy PG stock in 2026?
Our dual AI analysis gives PROCTER & GAMBLE Co a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PG's free cash flow?
PROCTER & GAMBLE Co's operating cash flow is $10.4B, with capital expenditures of $2.4B. FCF margin is 18.0%.
How does PG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 20.3% (avg: 8%), ROE 17.0% (avg: 18%), current ratio 0.72 (avg: 1.5).