Procter & Gamble Company's shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● With a 2025 P/E ratio at 25.24 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
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Procter & Gamble Company is one of the world's leaders in producing and selling consumer products. Net sales break down by family of products as follows:
- care and hygiene products (38.1%): oral hygiene products (toothpastes, toothbrushes, mouthwashes, etc.; Crest, Oral-B, Scope brands, etc.), pharmaceutical products (Metamucil, Neurobion, Pepto Bismol, Vicks, etc.), toilet training pants (Luvs, Pampers), toilet papers and paper towels (Bounty, Charmin, Puffs), feminine protection products (Always, Always Discreet and Tampax), etc.;
- home care and laundry products (35.1%): dishwashing liquids, detergents, stain removers, fabric softeners, deodorizers, bleaches, etc. (Ariel, Downy, Gain, Tide Cascade, Dawn, Fairy, Febreze, Mr. Clean, Swiffer, etc.);
- beauty products (18.1%): hair care products (shampoos, colorings, and cream rinses; Head & Shoulders, Herbal Essences, Pantene and Rejoice brands), body care (soaps, shower gels, deodorants, etc.; Camay, Zest, Secret, Old Spice) and cosmetics (make-up and facial care; Max Facto, Covergirl and Olay);
- shaving products (7.9%): blades, razors, batteries, etc. (Braun, Gillette and Venus brands);
- other (0.7%).