NYSE · Consumer Defensive

The Procter & Gamble Company

PG · Household & Personal Products

$150.38

▼ -0.18 (-0.12%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 49.5%

Operating Margin 21.6%

Net Income Margin 18.5%

Fin. Health

F⤢

Years to Pay Off Debt 9.4 yrs

Working Capital vs Long-Term Debt -$34.1B

Working Capital -$10.2B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 6.52x

Cash Flow

B⤢

Free Cash Flow $3.0B

CapEx % of Net Income 25.9%

Owner Earnings $5.7B

Profitability

Gross Profit Margin 49.5%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 21.6%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 18.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 9.4 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$34.1B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$10.2B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $3.0B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 25.9%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $5.7B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About The Procter & Gamble Company

The Procter & Gamble Company provides branded consumer packaged goods worldwide. It operates through Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care segments. The company offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; antiperspirants, deodorants, and personal cleansing products under the Native, Old Spice, Safeguard, and Secret brands; and facial moisturizers, cleaners, and treatments under the Olay and SK-II brands. It also provides blades, razors, shave products, appliances, and other grooming products under the Braun, Gillette, and Venus brands. In addition, the company offers toothbrushes, toothpastes, and other oral care products under the Crest and Oral-B brands; and gastrointestinal, pain relief, rapid diagnostics, respiratory, vitamins/minerals/supplements, and other personal health care products under the Metamucil, Neurobion, Pepto-Bismol, and Vicks brands. Further, it provides fabric enhancers, and laundry additives and detergents under the Ariel, Downy, Gain, and Tide brands; and air and dish care, P&G professional, and surface care under the Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands. Additionally, the company offers baby wipes, and taped diapers and pants under the Luvs and Pampers brands; adult incontinence and menstrual care products under the Always, Always Discreet, and Tampax brands; and paper towels, tissues, and toilet papers under the Bounty, Charmin, and Puffs brands. It sells its products through mass merchandisers, social and e-commerce channels, grocery and specialty beauty stores, membership club stores, drug and department stores, distributors, wholesalers, airport duty-free and high-frequency stores, pharmacies, electronics stores, and professional channels, as well as directly to consumers. The Procter & Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.

Market Data

Market Cap $350.2B

Enterprise Value $380.8B

P/E (TTM) 21.95

Dividend Yield 2.81%

Exchange NYSE

Key Margins

Gross Profit 49.5%

Operating Margin 21.6%

Net Margin 18.5%

Company Info

Sector Consumer Defensive

Industry Household & Personal Products

Employees 109000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering The Procter & Gamble Company at $150.38.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $150.38, the stock trades at a 417% premium to its Graham Number of $29.09. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	49.5%▼	51.2%•	N/A
Operating Margin %	21.6%▼	24.2%•	N/A
Net Income %	18.5%▼	19.4%•	N/A
Diluted EPS	1.63▼	1.78•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$128.4B	$127.3B	N/A
Total Debt	$37.0B▲	$36.6B•	N/A
Working Capital	-$10.2B▼	-$10.1B•	N/A
Years to Pay Debt	9.42	8.48	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$3.0B▼	$3.8B•	N/A
Owner Earnings	$5.7B	$6.3B	N/A
CapEx % of Net Income	25.9%	27.0%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	5,997,000	6,443,000
Net Income From Continuing Operation Net Minority Interest	3,932,000	4,319,000
Reconciled Depreciation	785,000	802,000
Reconciled Cost Of Revenue	10,722,000	10,834,000
EBITDA	5,997,000	6,443,000
EBIT	5,212,000	5,641,000
Net Interest Income	-123,000	-105,000
Interest Expense	223,000	220,000
Interest Income	100,000	115,000
Normalized Income	3,932,000	4,319,000
Net Income From Continuing And Discontinued Operation	3,932,000	4,319,000
Total Expenses	16,658,000	16,842,000
Total Operating Income As Reported	4,576,000	5,366,000
Diluted Average Shares	2,416,500	2,424,000
Basic Average Shares	2,368,675	2,373,077
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	3,860,000	4,247,000
Net Income Common Stockholders	3,860,000	4,247,000
Preferred Stock Dividends	72,000	73,000
Net Income	3,932,000	4,319,000
Minority Interests	-18,000	-12,000
Net Income Including Noncontrolling Interests	3,951,000	4,331,000
Net Income Continuous Operations	3,950,000	4,331,000
Tax Provision	1,039,000	1,090,000
Pretax Income	4,989,000	5,421,000
Other Income Expense	537,000	160,000
Other Non Operating Income Expenses	537,000	160,000
Net Non Operating Interest Income Expense	-123,000	-105,000
Interest Expense Non Operating	223,000	220,000
Interest Income Non Operating	100,000	115,000
Operating Income	4,577,000	5,366,000
Operating Expense	5,936,000	6,008,000
Selling General And Administration	5,936,000	6,008,000
Gross Profit	10,513,000	11,374,000
Cost Of Revenue	10,722,000	10,834,000
Total Revenue	21,235,000	22,208,000
Operating Revenue	21,235,000	22,208,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	1,680,601	1,685,199
Ordinary Shares Number	2,328,599	2,324,001
Share Issued	4,009,200	4,009,200
Net Debt	24,720,000	25,814,000
Total Debt	37,026,000	36,639,000
Tangible Book Value	-9,143,000	-11,127,000
Invested Capital	90,772,000	88,913,000
Working Capital	-10,248,000	-10,111,000
Net Tangible Assets	-8,384,000	-10,360,000
Capital Lease Obligations
Common Stock Equity	53,746,000	52,274,000
Preferred Stock Equity	759,000	767,000
Total Capitalization	78,357,000	78,618,000
Total Equity Gross Minority Interest	54,731,000	53,317,000
Minority Interest	226,000	276,000
Stockholders Equity	54,505,000	53,041,000
Other Equity Interest	-596,000	-637,000
Gains Losses Not Affecting Retained Earnings	-12,298,000	-12,108,000
Other Equity Adjustments	-12,298,000	-12,108,000
Treasury Stock	142,168,000	141,981,000
Retained Earnings	135,424,000	133,981,000
Additional Paid In Capital	69,375,000	69,010,000
Capital Stock	4,768,000	4,776,000
Common Stock	4,009,000	4,009,000
Preferred Stock	759,000	767,000
Total Liabilities Net Minority Interest	73,647,000	73,969,000
Total Non Current Liabilities Net Minority Interest	35,412,000	37,270,000
Other Non Current Liabilities	5,513,000	5,719,000
Derivative Product Liabilities
Employee Benefits
Non Current Pension And Other Postretirement Benefit Plans
Tradeand Other Payables Non Current
Non Current Deferred Liabilities	6,047,000	5,974,000
Non Current Deferred Taxes Liabilities	6,047,000	5,974,000
Long Term Debt And Capital Lease Obligation	23,852,000	25,577,000
Long Term Capital Lease Obligation
Long Term Debt	23,852,000	25,577,000
Current Liabilities	38,235,000	36,699,000
Other Current Liabilities		1,000	-1,000
Current Debt And Capital Lease Obligation	13,174,000	11,062,000
Current Capital Lease Obligation
Current Debt	13,174,000	11,062,000
Other Current Borrowings
Commercial Paper
Pensionand Other Post Retirement Benefit Plans Current
Current Provisions
Payables And Accrued Expenses	25,061,000	25,636,000
Current Accrued Expenses	10,031,000	10,463,000
Interest Payable
Payables	15,030,000	15,173,000
Total Tax Payable
Accounts Payable	15,030,000	15,173,000
Total Assets	128,378,000	127,286,000
Total Non Current Assets	100,391,000	100,697,000
Other Non Current Assets	12,928,000	12,809,000
Goodwill And Other Intangible Assets	62,889,000	63,401,000
Other Intangible Assets	21,530,000	21,736,000
Goodwill	41,359,000	41,665,000
Net PPE	24,574,000	24,487,000
Accumulated Depreciation
Gross PPE
Construction In Progress
Machinery Furniture Equipment
Buildings And Improvements
Land And Improvements
Current Assets	27,987,000	26,588,000
Other Current Assets	1,506,000	1,667,000
Inventory	7,853,000	7,817,000
Other Inventories		-1,000
Finished Goods	4,819,000	4,672,000
Work In Process	1,063,000	1,007,000
Raw Materials	1,971,000	2,139,000
Receivables	6,322,000	6,279,000
Accounts Receivable	6,322,000	6,279,000
Cash Cash Equivalents And Short Term Investments	12,306,000	10,825,000
Cash And Cash Equivalents	12,306,000	10,825,000

Cash Flow

	2026	2025	2024
Free Cash Flow	3,026,000	3,805,000
Repurchase Of Capital Stock	-625,000	-2,278,000
Repayment Of Debt	-3,968,000	-2,943,000
Issuance Of Debt	4,633,000	3,601,000
Capital Expenditure	-1,019,000	-1,167,000
End Cash Position	12,306,000	10,825,000
Beginning Cash Position	10,825,000	11,171,000
Effect Of Exchange Rate Changes	-73,000	-1,000
Changes In Cash	1,554,000	-345,000
Financing Cash Flow	-1,827,000	-4,088,000
Cash Flow From Continuing Financing Activities	-1,826,000	-4,090,000
Net Other Financing Charges
Proceeds From Stock Option Exercised	664,000	74,000
Cash Dividends Paid	-2,530,000	-2,544,000
Net Common Stock Issuance	-625,000	-2,278,000
Common Stock Payments	-625,000	-2,278,000
Net Issuance Payments Of Debt	665,000	658,000
Net Short Term Debt Issuance	2,021,000	-992,000
Short Term Debt Payments	-2,612,000	-1,941,000
Short Term Debt Issuance	4,633,000	949,000
Net Long Term Debt Issuance	-1,356,000	1,650,000
Long Term Debt Payments	-1,356,000	-1,002,000
Long Term Debt Issuance	0
Investing Cash Flow	-665,000	-1,228,000
Cash Flow From Continuing Investing Activities	-664,000	-1,229,000
Net Other Investing Changes	434,000	-61,000
Net Business Purchase And Sale	-80,000	0
Purchase Of Business	-80,000	0
Capital Expenditure Reported	-1,019,000	-1,167,000
Operating Cash Flow	4,045,000	4,972,000
Cash Flow From Continuing Operating Activities	4,044,000	4,972,000
Change In Working Capital	-228,000	-148,000
Change In Other Working Capital			-190,000
Change In Payables And Accrued Expense	-43,000	-409,000
Change In Payable	-43,000	-409,000
Change In Account Payable	-43,000	-409,000
Change In Inventory	-91,000	48,000
Change In Receivables	-94,000	213,000
Changes In Account Receivables	-94,000	213,000
Other Non Cash Items	-231,000	-301,000
Stock Based Compensation	132,000	141,000
Deferred Tax	-18,000	143,000
Deferred Income Tax	-18,000	143,000
Depreciation Amortization Depletion	785,000	802,000
Depreciation And Amortization	785,000	802,000
Operating Gains Losses	-346,000	4,000
Net Income From Continuing Operations	3,951,000	4,331,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $19.8B ▲ $21.2B +7.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 51.0% ▲ 49.5% -1.5pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 23.1% ▲ 21.6% -1.6pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 19.1% ▲ 18.5% -0.5pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$21.2B/qtr (≈$84.9B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.73x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$3.0B

vs Positive

Operating Cash Flow

$4.0B

Latest quarter · Buffett's cash reality check

ROIC

4.0%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

6.4x

Net Assets: $54.7B

Peers & Industry

No auto-detected peers for Household & Personal Products. You can manually compare PG against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.07%

Low — management has little skin in the game

Return on Equity (ROE)

7.3%

Weak — poor returns on equity

Return on Assets (ROA)

3.1%

Fair — average asset utilization

Share Buybacks (Latest Year)

$6.5B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+1.1% YoY

Debt is roughly stable

Leadership Team

Jon Moeller

Executive Chairman

Age 61

Pay: $3,827,656

0.097% of net income

Shailesh Jejurikar

CEO, President & Director

Age 57

Pay: $2,118,211

0.054% of net income

Andre Schulten

Chief Financial Officer

Age 54

Pay: $1,824,131

0.046% of net income

Jennifer Davis

Chief Executive Officer of Health Care

Age 53

Pay: $1,734,433

0.044% of net income

Sundar Raman

Chief Executive Officer of Fabric and Home Care and P&G Ventures

Age 50

Pay: $2,731,833

0.069% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.03%	187,029,747
Vanguard Capital Management LLC	6.49%	151,049,902
State Street Corporation	4.35%	101,250,847
Geode Capital Management, LLC	2.77%	64,403,372
Vanguard Portfolio Management LLC	2.70%	62,847,265
Morgan Stanley	2.11%	49,216,260
Charles Schwab Investment Management, Inc.	1.78%	41,360,143
JPMORGAN CHASE & CO	1.43%	33,202,858

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.39

Low volatility — more stable than the market

Short Interest

1.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.68x

Conservative balance sheet — low financial risk

Current Ratio

0.73x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $137.62 Current: $150.38 High: $167.25

Currently at 43% of 52-week range

The Procter & Gamble Company

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis