Procter Stock Buy Hold or Sell Recommendation

PG
 Stock
  

USD 146.11  2.32  1.61%   

Allowing for the 90-day total investment horizon and your highly speculative risk level, our recommendation regarding Procter Gamble is 'Strong Buy'. Macroaxis provides Procter Gamble buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PG positions. The advice algorithm takes into account all of Procter Gamble's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Procter Gamble's buy-and-hold perspective. Please check Procter Gamble Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Procter and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Procter Gamble.

Execute Procter Gamble Buy or Sell Advice

The Procter recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Procter Gamble. Macroaxis does not own or have any residual interests in Procter Gamble or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Procter Gamble's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Procter GambleBuy Procter Gamble
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Procter Gamble has a Risk Adjusted Performance of (0.06), Jensen Alpha of 0.0594, Total Risk Alpha of 0.1313 and Treynor Ratio of (0.11)
Macroaxis provides advice on Procter Gamble to complement and cross-verify current analyst consensus on Procter Gamble. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Procter Gamble is not overpriced, please check all Procter Gamble fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Procter Gamble has a price to earning of 26.69 X, we recommend you to check out Procter Gamble market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Procter Gamble Trading Alerts and Improvement Suggestions

Procter Gamble generated a negative expected return over the last 90 days
The company reports 33.67 B of total liabilities with total debt to equity ratio (D/E) of 0.74, which is normal for its line of buisiness. Procter Gamble has a current ratio of 0.67, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Procter Gamble until it has trouble settling it off, either with new capital or with free cash flow. So, Procter Gamble's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Procter Gamble sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Procter to invest in growth at high rates of return. When we think about Procter Gamble's use of debt, we should always consider it together with cash and equity.
Procter Gamble has a poor financial position based on the latest SEC disclosures
About 66.0% of Procter Gamble shares are owned by institutional investors
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Procter Gamble current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Procter analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Procter analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price166.67
Target Median Price175.00
Target High Price185.00
Recommendation Mean2.40
Number Of Analyst Opinions23
Target Low Price124.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Procter Gamble Returns Distribution Density

The distribution of Procter Gamble's historical returns is an attempt to chart the future uncertainty of Procter Gamble's future price movements. The chart of the probability distribution of Procter Gamble stock daily returns describes the distribution of returns around its average expected value. We use Procter Gamble price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Procter Gamble returns is essential to provide solid investment advice for Procter Gamble stock.
Mean Return-0.07Value At Risk-2.3
Potential Upside2.54Standard Deviation1.59
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Procter Gamble historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Procter Gamble Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(3.31 B)(3.38 B)(3.72 B)(3.35 B)(3.01 B)(3.25 B)
Depreciation Amortization and Accretion3.08 B2.82 B2.83 B2.82 B2.54 B2.6 B
Net Cash Flow or Change in Cash and Cash Equivalents266 M(2.53 B)(3 B)1.67 B1.5 B1.62 B
Net Cash Flow Business Acquisitions and Disposals(1.32 B)(491 M)(109 M)(3.94 B)(3.55 B)(3.64 B)
Issuance Purchase of Equity Shares(1.33 B)(2.73 B)(5.83 B)(1.68 B)(1.93 B)(2.08 B)
Issuance Repayment of Debt Securities1.28 B1.4 B(1.24 B)(817 M)(939.55 M)(1.01 B)
Payment of Dividends and Other Cash Distributions(7.44 B)(7.24 B)(7.31 B)(7.5 B)(6.75 B)(7.28 B)
Net Cash Flow from Financing(14.38 B)(9.99 B)(8.37 B)(21.53 B)(24.76 B)(26.72 B)
Net Cash Flow from Investing(3.51 B)(3.49 B)3.04 B(2.83 B)(2.55 B)(2.75 B)
Net Cash Flow Investment Acquisitions and Disposals(1.37 B)(3.38 B)46 M3.41 B3.92 B4.23 B
Net Cash Flow from Operations14.87 B15.24 B17.4 B18.37 B16.53 B15.02 B
Effect of Exchange Rate Changes on Cash(381 M)(29 M)19 M(88 M)(101.2 M)(109.19 M)
Share Based Compensation335 M351 M395 M515 M463.5 M412.33 M

Procter Gamble Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Procter Gamble or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Procter Gamble stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Procter stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.06
β
Beta against DOW0.74
σ
Overall volatility
1.60
Ir
Information ratio 0.07

Procter Gamble Volatility Alert

Procter Gamble exhibits very low volatility with skewness of -0.72 and kurtosis of 2.25. However, we advise investors to further study Procter Gamble technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Procter Gamble's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Procter Gamble's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Procter Gamble Implied Volatility

Procter Gamble's implied volatility exposes the market's sentiment of Procter Gamble stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Procter Gamble's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Procter Gamble stock will not fluctuate a lot when Procter Gamble's options are near their expiration.

Procter Gamble Fundamentals Vs Peers

Comparing Procter Gamble's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Procter Gamble's direct or indirect competition across all of the common fundamentals between Procter Gamble and the related equities. This way, we can detect undervalued stocks with similar characteristics as Procter Gamble or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Procter Gamble's fundamental indicators could also be used in its relative valuation, which is a method of valuing Procter Gamble by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Procter Gamble to competition
FundamentalsProcter GamblePeer Average
Return On Equity31.60 %(0.31) %
Return On Asset9.85 %(0.14) %
Profit Margin18.33 %(1.27) %
Operating Margin26.96 %(5.51) %
Current Valuation411.46 B16.62 B
Shares Outstanding2.42 B571.82 M
Shares Owned by Insiders0.12 %10.09 %
Shares Owned by Institutions65.63 %39.21 %
Number of Shares Shorted15.43 M4.71 M
Price to Earning26.69 X28.72 X
Price to Book7.81 X9.51 X
Price to Sales4.44 X11.42 X
Revenue79.62 B9.43 B
Gross Profit39.14 B27.38 B
EBITDA21.46 B3.9 B
Net Income14.31 B570.98 M
Cash and Equivalents8.53 B2.7 B
Cash per Share3.55 X5.01 X
Total Debt33.67 B5.32 B
Debt to Equity0.74 %48.70 %
Current Ratio0.68 X2.16 X
Book Value Per Share18.70 X1.93 K
Cash Flow from Operations17.13 B971.22 M
Short Ratio2.08 X4.00 X
Earnings Per Share5.47 X3.12 X
Price to Earnings To Growth4.28 X4.89 X
Number of Employees101 K18.84 K
Beta0.44-0.15
Market Capitalization353.39 B19.03 B
Total Asset127.14 B29.47 B
Retained Earnings104.59 B9.33 B
Working Capital3.01 B1.48 B
Current Asset33.78 B9.34 B
   Acquisition by B Allen of 225 shares of Procter Gamble subject to Rule 16b-3 [view details]

About Procter Gamble Buy or Sell Advice

When is the right time to buy or sell Procter Gamble? Buying financial instruments such as Procter Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Procter Gamble investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables4.18 B4.72 B5.43 B5.9 B
Inventories5.5 B5.98 B6.88 B7.01 B

Use Investing Ideas to Build Portfolios

In addition to having Procter Gamble in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Fabricated Products Theme
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Please check Procter Gamble Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Procter Gamble information on this page should be used as a complementary analysis to other Procter Gamble's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running Procter Gamble price analysis, check to measure Procter Gamble's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Procter Gamble is operating at the current time. Most of Procter Gamble's value examination focuses on studying past and present price action to predict the probability of Procter Gamble's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Procter Gamble's price. Additionally, you may evaluate how the addition of Procter Gamble to your portfolios can decrease your overall portfolio volatility.
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Is Procter Gamble's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Procter Gamble. If investors know Procter will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Procter Gamble listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.051
Market Capitalization
350.6 B
Quarterly Revenue Growth YOY
0.07
Return On Assets
0.0985
Return On Equity
0.32
The market value of Procter Gamble is measured differently than its book value, which is the value of Procter that is recorded on the company's balance sheet. Investors also form their own opinion of Procter Gamble's value that differs from its market value or its book value, called intrinsic value, which is Procter Gamble's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Procter Gamble's market value can be influenced by many factors that don't directly affect Procter Gamble's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Procter Gamble's value and its price as these two are different measures arrived at by different means. Investors typically determine Procter Gamble value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Procter Gamble's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.