Business Description
The Procter & Gamble Company, commonly referred to as P&G, is a global enterprise that supplies a broad spectrum of branded consumer products to markets worldwide. The company's operations are divided into five main business divisions: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers an assortment of hair care products, including conditioners, shampoos, styling aids, and treatments, under popular names like Head & Shoulders, Herbal Essences, Pantene, and Rejoice. It also features antiperspirants, deodorants, personal cleansing solutions, and skin care items from brands such as Olay, Old Spice, Safeguard, Secret, and SK-II. Within the Grooming division, P&G provides a range of shave care products and grooming appliances, prominently featuring brands like Braun, Gillette, and Venus. The Health Care unit encompasses oral hygiene essentials, including toothbrushes, toothpastes, and other dental care products sold under the Crest and Oral-B brand names. This segment further extends to gastrointestinal remedies, rapid diagnostics, respiratory care, vitamins/minerals/supplements, pain relief, and various other personal health care items from brands such as Metamucil, Neurobion, Pepto-Bismol, and Vicks. In the Fabric & Home Care category, consumers find fabric enhancers, laundry additives, and laundry detergents through labels like Ariel, Downy, Gain, and Tide. Additionally, this division offers air care products, dishwashing solutions, professional cleaning supplies (P&G Professional), and surface cleaners, exemplified by brands such as Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer. Finally, the Baby, Feminine & Family Care segment provides infant care products, including baby wipes, taped diapers, and pants, under the Luvs and Pampers brands. It also supplies adult incontinence and feminine hygiene products from Always, Always Discreet, and Tampax, along with paper towels, tissues, and toilet paper marketed as Bounty, Charmin, and Puffs. P&G distributes its extensive product portfolio through a vast commercial network, including large retail chains, e-commerce platforms, grocery stores, membership clubs, pharmacies, department stores, various distributors, wholesalers, specialty beauty retailers, high-frequency stores, electronics outlets, and professional channels, as well as direct-to-consumer sales. The Procter & Gamble Company was established in 1837 and its corporate headquarters are located in Cincinnati, Ohio.
Business History
Generated: Jun 24, 2026 3:03amPrice Overview
Last updated: Jun 24, 2026 3:00am (3d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 6.67
Total Equity: $52.01B
Shares: 2,454,400,000
Total Debt: $34.51B
Cash: $9.56B
EBITDA: $23.92B
Total Debt: $34.51B
Cash: $9.56B
Revenue: $84.28B
Revenue: $84.28B
Revenue: $84.28B
Total Equity: $52.01B
Tax Rate: 20.3%
Equity: $52.01B
Total Debt: $34.51B
Cash: $9.56B
Current Liabilities: $36.06B
Long-Term Debt: $25.00B
Total Debt: $34.51B
Total Equity: $52.01B
Shares: 2,454,400,000
Shares: 2,454,400,000
CapEx: -$3.77B
Shares: 2,454,400,000
Stock Price: $150.86
Net Income: $15.97B
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
PG is operating as a textbook mature_earner. Revenue grew from 76.1B in 2021 to 84.3B in 2025 (about 2.6% CAGR), but the quality of that growth is what matters: gross margin recovered from a 47.4% trough in 2022 back to 51.2% in 2025, and operating margin expanded to 24.3% in the most recent year - the highest in the five-year window. Net income reached a record 15.97B and FCF averaged about 14.7B/yr, with OCF/NI at 1.2x confirming earnings convert to cash. Beneish M of -2.53, Altman Z of 5.45, and -2.5% accruals leave no mechanical red flags. Capital allocation is shareholder-friendly and disciplined. Diluted share count fell from 2.60B to 2.45B (-1.4% CAGR), SBC is a trivial 0.6% of revenue, and buybacks run 15x SBC - per-share value is being concentrated, not leaked. Net debt of ~25B is real but trivial relative to ~14B annual FCF (under 2x), so the leverage is a tool, not a constraint. Insider tape shows only routine awards and tax-related dispositions; the 55M of sales over 12 months is immaterial against a 351B cap and shows no directional signal. This is a high-integrity, well-run business.
Verify before trusting this (5)
- Organic volume vs price/mix split in fiscal 2025 to confirm whether the top-line slowdown is volume erosion or pricing reset
- Segment-level operating margin (Beauty, Health Care, Fabric & Home, Baby/Family) to see where the 24.3% OpM expansion is concentrated
- China and other emerging-market exposure given recent staples peer commentary on volume softness
- Pension and lease obligations beyond reported net debt to fully size the leverage picture
- Working-capital changes embedded in 2025 FCF dip from 16.5B to 14.0B - one-off or trend
Price is $150.86 against a composite fair value of $122.42 and signal-adjusted FV of $119.97 - roughly 20-25% above deserved value even after crediting clean earnings quality. The anchored-PE method stretches to $167 (reflecting the rich multiple the market already pays), while EPV floor sits at just $77, so the band is wide but the center of gravity is clearly below today's price. With a Fortress quality grade I will lift deserved value somewhat, but P&G is a 2-4% organic grower with mature 24% margins - there is no hidden compounding to underwrite a premium beyond what is already paid.
Verify before trusting this (4)
- Organic sales growth trajectory in next 1-2 prints - is volume re-accelerating or stuck at 1-2%?
- FX and pricing mix in guidance - how much of EPS growth is real vs price/cost
- Buyback pace vs FCF - is per-share concentration continuing at current cadence
- Any margin give-back from input costs or promo intensity in Beauty/Grooming
The tape is neutral-to-jittery (VIX 19.5, S&P off 3.2% from highs) and a visible rotation is underway out of semis and AI into consumer defensives - news flow explicitly cites Campbell's, Colgate, Conagra, BellRing and others jumping on that rotation. PG sits squarely in that bid: a 0.39 beta, household-essentials moat, and a 'sleep-easy-forever' dividend-durability narrative that is exactly what investors reach for when AI leadership cracks. That is a clean non-fundamental tailwind for THIS name.
Verify before trusting this (4)
- Whether the AI/semis selloff deepens (extends the defensive rotation) or reverses in 1-2 sessions
- 10y yield direction and any Fed commentary - a renewed yield spike is the cleanest way to break the staples bid
- Analyst target revisions over next 30 days - more upward prints would confirm tone is aligned with narrative
- Volume/flow data in XLP and PG specifically to confirm the rotation is real money, not headline noise
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 24, 2026 3:03am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $76.1B | $80.2B | $82.0B | $84.0B | $84.3B |
| Cost of Revenue | $37.1B | $42.2B | $42.8B | $40.8B | $41.2B |
| Gross Profit | $39.0B | $38.0B | $39.2B | $43.2B | $43.1B |
| Operating Expenses | $21.0B | $20.2B | $21.1B | $24.6B | $22.7B |
| Operating Income | $18.0B | $17.8B | $18.1B | $18.5B | $20.5B |
| Net Income | $14.3B | $14.7B | $14.7B | $14.9B | $16.0B |
| EBITDA | $20.9B | $21.2B | $21.8B | $22.6B | $23.9B |
| EPS | $5.69 | $6.00 | $6.07 | $6.18 | $6.67 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 24, 2026 3:00am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $10.3B | $7.2B | $8.2B | $9.5B | $9.6B |
| Total Current Assets | $23.1B | $21.7B | $22.6B | $24.7B | $25.4B |
| Total Assets | $119.3B | $117.2B | $120.8B | $122.4B | $125.2B |
| Current Liabilities | $33.1B | $33.1B | $35.8B | $33.6B | $36.1B |
| Long-Term Debt | $23.1B | $22.8B | $24.4B | $25.3B | $25.0B |
| Total Liabilities | $72.7B | $70.4B | $73.8B | $71.8B | $72.9B |
| Total Equity | $46.4B | $46.6B | $46.8B | $50.3B | $52.0B |
| Retained Earnings | $106.4B | $112.4B | $118.2B | $123.8B | $130.0B |
Cash Flow (Annual)
Last updated: Jun 22, 2026 3:04am (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $18.4B | $16.7B | $16.8B | $19.8B | $17.8B |
| Capital Expenditure | -$2.8B | -$3.2B | -$3.1B | -$3.3B | -$3.8B |
| Free Cash Flow | $15.6B | $13.6B | $13.8B | $16.5B | $14.0B |
| Acquisitions (net) | -$34.0M | -$1.4B | -$765.0M | -$21.0M | -$11.0M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$11.0B | -$10.0B | -$7.4B | -$5.0B | -$6.5B |
| Net Change in Cash | -$5.9B | -$3.1B | $1.0B | $1.2B | $74.0M |
Analyst Estimates (Annual)
Last updated: Jun 24, 2026 3:00am (3d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$89.7B $88.6B – $91.9B
|
$92.8B $92.8B – $92.8B
|
$96.1B $95.0B – $97.9B
|
$99.0B $97.9B – $100.9B
|
| EBITDA |
$26.5B $26.2B – $27.1B
|
$27.4B $27.4B – $27.4B
|
$28.4B $28.1B – $28.9B
|
$29.3B $28.9B – $29.8B
|
| Net Income |
$17.4B $17.1B – $17.8B
|
$17.9B $17.7B – $19.2B
|
$19.1B $18.8B – $19.6B
|
$19.6B $19.3B – $20.1B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 24, 2026 3:03am (3d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +5.3% | +2.3% | +2.5% | +0.3% |
| Gross Profit Growth | -2.5% | +3.2% | +10.1% | -0.2% |
| Operating Income Growth | -1.0% | +1.8% | +2.3% | +10.3% |
| Net Income Growth | +3.0% | -0.6% | +1.5% | +7.4% |
| EBITDA Growth | +1.9% | +2.5% | +3.7% | +5.9% |
Insider Trading (Recent)
Last updated: Jun 24, 2026 3:03am (3d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-09 | Portman Robert Jones | A-Award | 51.00 | $0.00 | $0 |
| 2026-06-09 | McEvoy Ashley | A-Award | 202.00 | $0.00 | $0 |
| 2026-06-09 | McCarthy Christine M | A-Award | 253.00 | $0.00 | $0 |
| 2026-06-09 | Kempczinski Christopher J | A-Award | 258.00 | $0.00 | $0 |
| 2026-06-09 | JIMENEZ JOSEPH | A-Award | 320.00 | $0.00 | $0 |
| 2026-06-09 | ARNOLD CRAIG | A-Award | 202.00 | $0.00 | $0 |
| 2026-06-01 | Abd El Hak Hesham | 0.00 | $0.00 | $0 | |
| 2026-06-01 | Abd El Hak Hesham | 0.00 | $0.00 | $0 | |
| 2026-06-01 | Abd El Hak Hesham | 0.00 | $0.00 | $0 | |
| 2023-02-28 | Abd El Hak Hesham | 15,595.00 | $113.23 | $1.8M | |
| 2023-09-29 | Abd El Hak Hesham | 19,440.00 | $139.24 | $2.7M | |
| 2024-10-01 | Abd El Hak Hesham | 20,036.00 | $139.58 | $2.8M | |
| 2026-06-01 | Abd El Hak Hesham | 37.24 | $0.00 | $0 | |
| 2025-10-01 | Abd El Hak Hesham | 21,839.00 | $128.51 | $2.8M | |
| 2025-09-15 | Abd El Hak Hesham | 19,267.00 | $137.44 | $2.6M | |
| 2026-10-02 | Abd El Hak Hesham | 29,159.00 | $145.19 | $4.2M | |
| 2026-09-15 | Abd El Hak Hesham | 18,733.00 | $153.47 | $2.9M | |
| 2027-10-01 | Abd El Hak Hesham | 35,384.00 | $173.04 | $6.1M | |
| 2027-09-13 | Abd El Hak Hesham | 12,662.00 | $174.08 | $2.2M | |
| 2028-09-29 | Abd El Hak Hesham | 41,388.00 | $153.18 | $6.3M |
Dividend History (Last 20)
Last updated: Jun 21, 2026 6:37pm (5d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-04-24 | $1.09 | 2026-04-14 | 2026-04-24 | 2026-05-15 |
| 2026-01-23 | $1.06 | 2026-01-13 | 2026-01-23 | 2026-02-17 |
| 2025-10-24 | $1.06 | 2025-10-14 | 2025-10-24 | 2025-11-17 |
| 2025-07-18 | $1.06 | 2025-07-08 | 2025-07-18 | 2025-08-15 |
| 2025-04-21 | $1.06 | 2025-04-08 | 2025-04-21 | 2025-05-15 |
| 2025-01-24 | $1.01 | 2025-01-14 | 2025-01-24 | 2025-02-18 |
| 2024-10-18 | $1.01 | 2024-10-08 | 2024-10-18 | 2024-11-15 |
| 2024-07-19 | $1.01 | 2024-07-09 | 2024-07-19 | 2024-08-15 |
| 2024-04-18 | $1.01 | 2024-04-09 | 2024-04-19 | 2024-05-15 |
| 2024-01-18 | $0.94 | 2024-01-09 | 2024-01-19 | 2024-02-15 |
| 2023-10-19 | $0.94 | 2023-10-10 | 2023-10-20 | 2023-11-15 |
| 2023-07-20 | $0.94 | 2023-07-11 | 2023-07-21 | 2023-08-15 |
| 2023-04-20 | $0.94 | 2023-04-11 | 2023-04-21 | 2023-05-15 |
| 2023-01-19 | $0.91 | 2023-01-10 | 2023-01-20 | 2023-02-15 |
| 2022-10-20 | $0.91 | 2022-10-11 | 2022-10-21 | 2022-11-15 |
| 2022-07-21 | $0.91 | 2022-07-12 | 2022-07-22 | 2022-08-15 |
| 2022-04-21 | $0.91 | 2022-04-12 | 2022-04-22 | 2022-05-16 |
| 2022-01-20 | $0.87 | 2022-01-11 | 2022-01-21 | 2022-02-15 |
| 2021-10-21 | $0.87 | 2021-10-12 | 2021-10-22 | 2021-11-15 |
| 2021-07-22 | $0.87 | 2021-07-13 | 2021-07-23 | 2021-08-16 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
The raw numbers tell a sobering story that the synthesis got mostly right but for slightly wrong reasons. TTM revenue is roughly $86.7B (sum of last four quarters) against FY2025's $84.3B — that's ~2.9% YoY, but the most recent quarter (Mar 2026 at $21.24B) is actually *down* sequentially from $22.39B and only modestly up vs. $19.78B in the year-ago quarter (which itself was a weak comp). Net margin compressed from 21.2% a year ago to 18.7% in the latest print. Five-year revenue CAGR is 2.1%, earnings CAGR 2.8% — not the 4.4% the momentum module shows (that looks like it's anchored on a weak FY24 trough). FCF of $14.04B on a $351B market cap is a 4.0% FCF yield; add 2.5% dividend yield and you're being paid bond-like returns for equity duration risk. The math doesn't support 21.9x earnings unless you believe in permanent margin expansion, which the latest quarter directly contradicts.
The synthesis fair value of ~$120 (implying -20%) aligns with my own back-of-envelope: a 2.5% perpetual grower with 6% cost of equity and $5.80 normalized EPS gets you ~$115-125. The Market Forces module calling this a "value trap" with an "unrealistic 10.7% forward growth projection" is the sharpest take here — nothing in eight quarters of data supports double-digit forward growth. The Pre-Flight note saying P&G trades at "28x P/E vs historical 18-22x" is factually wrong (TTM PE is 21.9x, not 28x), but the directional point holds: this is at the high end of its historical band during a period where organic growth is decelerating, not accelerating. The Narrative module's framing — "you're paying for the height of the dividend floor relative to alternatives" — is the cleanest articulation of the bull case, and it's honest that this is a rate-sensitive premium, not a fundamental one.
The contrarian case worth taking seriously: P&G has survived every "mature staples is dead" call for 40 years, and the brand portfolio (Tide, Pampers, Gillette, Crest) genuinely does have pricing power that shows up in the 51% gross margin holding steady. If you believe we're entering a period of sustained consumer stress, defensive cash flows re-rate higher, not lower — the 2008-2009 playbook had PG outperforming dramatically. The insider data is too thin to read (June 2026 awards are routine grants, the 2023 transaction is stale), so that's not a tell either way. And the current_ratio of 0.70 looks scary in isolation but is normal for a company that converts inventory in <60 days and has $14B in annual FCF — not a balance sheet concern. The real risk to my bearish lean: if rates fall meaningfully in 2026, every long-duration cash flow stock re-rates higher and PG could see $165 without earning it.
I agree with the synthesis verdict but want to be more precise than "fully_priced." This is overvalued by ~20% on fundamentals with a defensible 5-10% narrative premium for genuine quality, which gets me to a fair value range of $122-132, call it $127 midpoint. At $151 you're paying ~$20 of pure rate-sensitivity premium with negative recent quarterly momentum (Mar 2026 margin down 250bps YoY) as your entry point. The Market Forces module is right that the forward growth assumption embedded in current price is unrealistic; the Narrative module is right that the premium is durable but unexciting. Holders should hold — selling a Buffett-style compounder over 15% overvaluation is usually a mistake. New buyers should wait for either a macro flush to $130 or evidence the latest margin compression was transitory (one more quarterly print). The asymmetry isn't there at $151.
GPT Critique
In my independent analysis of Procter & Gamble (P&G), the financial data presents a picture of a mature company with stable but modest growth. Recent quarterly revenues show an incremental increase from $19.78B a year ago to $21.24B in March 2026, reflecting a 7.4% net income YoY growth. However, the sequential decline from $22.39B the previous quarter should not be overlooked, indicating potential volatility in the company's short-term earnings. The company's gross margin remains strong at 51.16%, and its cash flow position is robust with $14.04B in free cash flow. These reflect P&G's ability to maintain profitability and financial stability, albeit with a current ratio of 0.7042 that suggests tight liquidity management is necessary. The P/E ratio at 21.88x is consistent with a company of P&G's stature, yet remains at the higher end of its historical range, suggesting that the stock is priced for perfection with little room for error.
In reviewing Claude Opus's analysis, I agree with the conclusion that P&G is overvalued by approximately 15-20%, with a fair value closer to $125-130. Opus points out the margin compression from 21.2% to 18.7% YoY, which indeed undermines the quality-premium thesis and aligns with my observation of potential earnings volatility. I concur with Opus's critique of the synthesis model's unrealistic 10.7% forward growth projection; the data supports a more conservative 2-3% growth outlook given the company's historical performance. However, I differ slightly on the interpretation of the price-to-earnings multiple. While Opus highlights a discrepancy in the historical P/E range, my view is that the current valuation at 21.9x is indeed within the high end of its typical range, but not as overextended as Opus suggests.
The narrative described by Opus—that P&G is valued for its defensive qualities rather than growth—is compelling and accurate. The emphasis on brand strength and pricing power is valid, particularly in economically challenging times. However, I am less convinced by Opus's assertion that the market forces module's "value trap" designation is entirely justified. P&G's durable dividend yield and strong cash flow generation provide a buffer against drastic valuation shifts, even in the face of margin pressures.
A skeptic might argue that both analyses underappreciate the resilience of P&G's business model and its historical ability to weather economic downturns. They would point to the consistent gross margins and dividend history as indicators of underlying strength that could justify a premium valuation, especially if macroeconomic conditions favor defensive stocks. Furthermore, a potential reduction in interest rates could enhance the attractiveness of P&G's dividend yield relative to fixed-income alternatives, supporting a higher valuation.