Crest, Oral-B, Vicks, Always, Bounty, Pampers
Employees: 110 000, +70 countries
Fiscal year ends: 30 June
Headquarter: One Procter & Gamble Plaza, Cincinnati, Ohio
Products: Branded consumer packaged goods of superior quality
Rating (long-term): A-1+ / AA- (S&P), P-1 / Aa3 (Moody’s)
Competitors: Unilever, Colgate-Palmolive, Kimberly Clark, Estee Lauder
• Global Beauty
• Global Baby, Feminine and Family Care
• Global Fabric and Home Care
• Global Health and Grooming
As of 2015, the company had the following statistics:
P&G is focusing on 10 product categories with about 65 brands. About two dozen of P&G’s brands are billion-dollar sellers, including Always, Braun, Crest, Fusion, Gillette, Head & Shoulders, Mach3, Olay, Oral-B, Pantene, and Wella in the beauty and grooming segment, as well as Bounty, Charmin, Dawn, Downy, Duracell, Gain, Pampers, and Tide in the household care segment.
P&G’s hundreds of brands are available in more than 180 countries.
The 65 strongest brands in its portfolio across different segments makes PG one of the most diversified companies.
• Revenue and Gross profit are on course to decline for their second straight fiscal year: $84 167 (2013), $83 062 (2014), $76 279 (2015)
• PG is carefully managing its cost base thus cost reduction improved Gross margin slightly, as a result it is about 49.03%.
• Net income, Net margin, Operating margin and Basic EPS continue to strengthen.
Profitability is Stable:
• Operating cash flow has leapt in 2016 so far compared to 2015; Capex has dropped.
As a result, the company posts a near-record level of free cash flow generation improving Retained earnings at the same time.
• ROA and ROE ratios continue to strengthen.
Financial health is High-:
• The company has a manageable leverage, which is truly appealing and been flat over five years.
Valuation price: $206.72 => There is 35% upside to the current market price
Last stock splits: 2:1 (22.02.1983), 2:1 (20.11.1989), 2:1 (15.06.1992), 2:1 (22.09.1997), 2:1 (21.06.2004)
Share repurchase: positive
1837: April 12, William Procter and James Gamble start making and selling their soap and candles.
1837: August 22, William Procter and James Gamble formalize their business relationship by pledging $3,596.47 apiece.
1837: The formal partnership agreement is signed on October 31.
1859: P&G reached $1 million in total sales and the company had 80 employees.
1905: May 5, The Company was incorporated in Ohio
1937: P&G celebrates its one-hundredth anniversary; sales reach over $200 million.
1946: Tide laundry detergent is launched.
1961: Pampers disposable diapers are introduced
1967: Ariel is introduced and later becomes one of P&G’s leading global laundry brands
1996: Gillette acquires Duracell, originally founded in the early 1920s.
1998: Mach 3 razor is introduced.
2005: P&G and Gillette merge into one company
Disclosure: Billion Trader has no positions in any stocks mentioned, the valuation is based on the own model developed and tested by Billion Trader. Billion Trader is not responsible for any loss arising from information provided.