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The Procter & Gamble Company logo

The Procter & Gamble Company

PG
45
Household & Personal Products · Consumer Defensive
Price
$149.96
-1.54 (-1.02%)
Market Cap
$349.20B
Winston Score
45
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

5.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 2.60B (2021) → 2.45B (2025)

Procter & Gamble makes everyday household products that people use in their homes. The company produces well-known brands like Tide laundry detergent, Crest toothpaste, Pampers diapers, and Gillette razors. P&G sells these products to consumers through grocery stores, pharmacies, and retailers worldwide, making it one of the largest consumer goods companies globally.

P&G makes money by selling its products to retailers, who then sell them to consumers at a markup. The company operates in about 70 countries and generates roughly $80 billion in annual revenue, with strong market positions built on brand recognition and distribution networks that took decades to establish. The company's main growth challenge comes from slower population growth in developed markets and increasing competition from smaller, direct-to-consumer brands that appeal to younger shoppers.

Winston Score History

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Score breakdown

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Quality

Gross Margin
49.5%
Healthy — 49.5% gross margin
Operating Margin
21.5%
Excellent — 21.5% operating margin
ROCE
5.0%
Weak — 5.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-1.0%
Shrinking sales (-1.0% YoY)
EPS YoY
-3.4%
Earnings shrinking (-3.4% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
113%
Turns 113% of profit into real cash
FCF Margin
16.2%
Converts sales into free cash efficiently (16.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.68
Moderate — manageable debt (0.68)
Interest Cover
43.65x
Comfortably covers interest (43.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
22.8x
Growth-priced — P/E 22.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+3.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (22.8 → 19.5)

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Dividends

Dividend Yield
2.91%
Moderate income — 2.91% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+4.5%
Dividend growing modestly (4.5% YoY)

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