Business quality: stronger than mostValuation: pricier than most
A stronger business than most consumer staples companies, priced above most of them.
Procter & Gamble trades at 23.6 times the next 12 months of expected earnings, against a median of 16.6x for the 35 consumer staples stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.
- Revenue grew slower than the sector median: +3.5% vs +4.9%
- Keeps more of each sale (gross margin): 49.8% vs 40.5%
- More profitable (operating margin): 22.6% vs 13.6%
- Turns more of its sales into cash: 17.4% vs 10.3%