📊 PG Key Takeaways
Is PROCTER & GAMBLE Co (PG) a Good Investment?
Procter & Gamble demonstrates exceptional fundamental strength with 24% operating margins, 19.8% net margins, and robust free cash flow generation of $11B annually. The company's 23.8% ROE, healthy 0.44x debt-to-equity ratio, and 22.4x interest coverage reflect pristine financial health and efficient capital deployment. However, anemic 0.3% revenue growth signals market saturation and reliance on financial engineering (buybacks) rather than organic expansion.
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
- Industry-leading profitability: 24.0% operating margin and 19.8% net margin demonstrate pricing power and operational excellence
- Exceptional cash generation: $11.0B free cash flow with 16.8% FCF margin provides financial flexibility for dividends and shareholder returns
- Superior capital efficiency: 23.8% ROE and 10.1% ROA far exceed cost of capital, indicating value-accretive deployment
- Fortress balance sheet: 0.44x debt-to-equity ratio and 22.4x interest coverage provide substantial debt capacity and financial stability
- Substantial cash reserves: $12.3B in cash supports strategic initiatives and shareholder returns
- 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 organic growth: 0.3% revenue growth indicates market maturity and limited organic expansion opportunities
- EPS growth disconnect: 8.1% EPS growth driven by buybacks while revenue barely grows, suggesting unsustainable financial engineering
- Tight working capital: Current ratio of 0.73x and quick ratio of 0.53x below 1.0 constrain operational flexibility
- Dividend sustainability challenges: Heavy shareholder return commitments may limit reinvestment in innovation and competitive positioning
- 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
- Organic revenue growth acceleration vs. continued stagnation
- Operating margin trajectory as cost pressures and competition evolve
- Free cash flow stability and sustainability of shareholder distribution levels
- 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 |
|---|---|---|---|
| Q3 2026 | $19.8B | $3.8B | $1.54 |
| 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 |
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: Industry-leading profitability: 24.0% operating margin and 19.8% net margin demonstrate pricing power and operational excellence. Exceptional cash generation: $11.0B free cash flow with 16.8% FCF margin provides financial flexibility for dividends and shareholder returns. 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 organic growth: 0.3% revenue growth indicates market maturity and limited organic expansion opportunities. EPS growth disconnect: 8.1% EPS growth driven by buybacks while revenue barely grows, suggesting unsustainable financial engineering. 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 $65.8B.
Does PG pay dividends?
PROCTER & GAMBLE Co pays dividends, with $7,623.0M 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 $5.36.
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 May 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 23.8% (sector avg: 18%), net margin of 19.8% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
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 $14.4B, with capital expenditures of $3.4B. FCF margin is 16.8%.
How does PG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 19.8% (avg: 8%), ROE 23.8% (avg: 18%), current ratio 0.73 (avg: 1.5).