PG - Embedded Expectations Analysis - 2021 03 01
The Procter & Gamble Company (PG:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 25.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about organic sales growth, market recovery, and their capital allocation strategySpecifically, management may lack confidence in their ability to execute their capital allocation strategy, sustain organic sales growth, and continue supplying retailers effectively. Moreover, they may be exaggerating the improvements to their performance-based product offerings, the strength of their current global and e-commerce market position, and their pricing power. Finally, management may be downplaying concerns about the impact of pricing on top line growth and the pace of recovery of the consumer and enterprise markets
Procter & Gamble provides consumer packaged goods. The company's products are sold primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, beauty stores, other stores and pharmacies. The company has five reportable segments: Beauty, which includes hair care, and skin and personal care products; Grooming, which includes shave care products; Health Care, which includes oral care and personal health care products; Fabric and Home Care, which includes fabric care and home care products; and Baby, Feminine and Family Care, which includes baby care, feminine care and family care products.
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