The Procter & Gamble Company [NYSE: PG] shares went higher by 1.12% from its previous closing of $109.68, now trading at the price of $110.91, also adding 1.23 points. Is PG stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 8.6 million contracts. Compared to the average trading volume of PG shares, the company saw a far better performance. Moreover, the stock has a 2.51B float and a +3.29% run over in the last seven days. PG share price has been hovering between $110.65 and $75.39 lately, and is definitely worthy of attention.
The Procter & Gamble Company [NYSE:PG]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to The Procter & Gamble Company [PG], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in June. On average, stock market experts give PG an Outperform rating. Its stock price has been found in the range of 75.39 to 110.65. This is compared to its latest closing price of $109.68.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Procter & Gamble Company [PG] is sitting at 2.38. This is compared to 1 month ago, when its average rating was 2.38.
For the quarter ending in Mar-19 The Procter & Gamble Company [PG] generated $16.46 billion in sales. That’s 0.59% higher than the average estimate of $16.37 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 30 Jul (In 46 Days).
Fundamental Analysis of The Procter & Gamble Company [PG]
Now let’s turn to look at profitability: with a current Operating Margin for The Procter & Gamble Company [PG] sitting at +22.12 and its Gross Margin at +49.95, this company’s Net Margin is now 16.00%. These measurements indicate that The Procter & Gamble Company [PG] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 17.23, and its Return on Invested Capital has reached 13.10%. Its Return on Equity is 18.14, and its Return on Assets is 8.17. These metrics all suggest that The Procter & Gamble Company is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Procter & Gamble Company [PG] has generated a Total Debt to Total Equity ratio of 59.83. Similarly, its Total Debt to Total Capital is 37.43, while its Total Debt to Total Assets stands at 26.44. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 40.65, and its Long-Term Debt to Total Capital is 24.96. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 16.59 and its Total Debt to EBITDA Value is 1.78. The Enterprise Value to Sales for this firm is now 4.36, and its Total Debt to Enterprise Value stands at 0.14. The Procter & Gamble Company [PG] has a Price to Book Ratio of 3.80, a Price to Cash Flow Ratio of 13.95 and P/E Ratio of 26.40. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, The Procter & Gamble Company [PG] earns $726,435 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 14.40 and its Total Asset Turnover is 0.56. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.66 and its Current Ratio is 0.83. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
The Procter & Gamble Company [PG] has 2.51B shares outstanding, amounting to a total market cap of $278.28B. Its stock price has been found in the range of 75.39 to 110.65. At its current price, it has moved up by 0.23% from its 52-week high, and it has moved up 47.12% from its 52-week low.
This stock’s Beta value is currently 0.41, which indicates that it is 1.12% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 67.05. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Procter & Gamble Company [PG] a Reliable Buy?
Shares of The Procter & Gamble Company [PG], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.