Is the business good?
How good a business is PG?
Procter & Gamble earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
20%
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Household & Personal Products median 15% · 12 months to Q4 2026
- Cash conversion
- 0.94×
Cash conversion · 0.88× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 50%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 24% |
| FY2022 | 22% |
| FY2023 | 22% |
| FY2024 | 22% |
| FY2025 | 24% |
| FY2026 | 23% |
Details›
- Gross margin12 months to Q4 2026
- 50%
- Operating margin12 months to Q4 2026
- 23%
- Net margin12 months to Q4 2026
- 18%
- Free cash flow margin
- 17%
- Revenue, trailing twelve months
- $87.0B
- Free cash flow, trailing twelve months
- $15.1B
- Net income, trailing twelve months
- $16.0B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Household & Personal Products
Ranks #1 of 13 by Smart Score