A Quick Look at the Procter & Gamble Profit Machine

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Procter & Gamble is normal, but the balance sheet is in negative territory. This is normal for the company. Operating cash flow is over $13 billion.  

Debt-To-Equity

Cash

Long-Term Debt

PG

0.49

$5.30 Billion

$31.88 Billion

KMB

1.10

$1.25 Billion

$6.40 Billion

CL

1.95

$909.00 Million

$5.19 Billion

 

T = Technicals on the Stock Chart Are Strong

Procter & Gamble isn’t the place to be if you’re looking for extraordinary gains. It’s more about investing in an extraordinary company that will reward its investors at a slow and steady pace. Procter & Gamble has underperformed Kimberly-Clark Corporation (NYSE:KMB) and Colgate-Palmolive (NYSE:CL) over the past three years, but Procter & Gamble has outperformed those same competitors so far this year.

1 Month

Year-To-Date

1 Year

3 Year

PG

7.33%

8.32%

16.07%

32.48%

KMB

3.27%

2.49%

24.96%

61.62%

CL

5.22%

5.73%

25.80%

47.41%

 

At $73.01, Procter & Gamble is currently trading above all its averages.        

50-Day SMA

69.08

100-Day SMA

68.88

200-Day SMA

66.49

 

E = Earnings Have Been Inconsistent  

It might surprise you that there hasn’t been much earnings growth over the past five years. However, revenue has increased every year since 2009.

2008

2009

2010

2011

2012

Revenue ($)in billions

79.26

76.69

77.57

81.10

83.68

Diluted EPS ($)

3.64

4.26

4.11

3.93

3.66

 

We already know what happened this quarter. Now let’s take a look at previous quarters.  

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

21.53

22.14

20.19

19.82

20.74

Diluted EPS ($)

1.03

0.57

0.82

1.24

0.96

 

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