Would you buy P&G shares?

1. Proctor and Gamble
By Ecaterina Barbus, Dmitri Bradley,
Katie Button, Alex Bringsjord, Yushu Gu

2. ∗ 90% of households in the US own at least one of
P&G’s 300 brands
∗ 50 brands are market leaders
The largest lineup of leading brands in the
industry with 20 brands worth over $1 billion

3. ∗ Strong cost savings
∗ Consistent innovation (ranked #30 in the world)
∗ Diversified product portfolio
∗ Excellent marketing
∗ Brand recognition
∗ Emerging market growth
∗ Go-to-market capabilities
∗ Ranked by leading retailers as a preferred supplier
Core Strengths

4. ∗ Market Cap $222.12 Billion
∗ Dividend Yield 3.14%
∗ Gross Margin 49.6%
∗ Operating Margin 17.2%
∗ P/E Ratio 20.85
Key Financial Indicators

5. ∗ The Street Ratings
∗ Rated as a “buy”
∗ Good cash flow from operations
∗ Growth in earnings per share
∗ Increase in net income
∗ Largely solid financial position with reasonable debt levels
∗ Increase in stock price during the past year
∗ Market Edge rates P&G as “long”
∗ Largest investors include Warren Buffet and Bill Ackman
Analyst’s Opinions

6. ∗ Joined the company in 1977 and held positions of increasing
responsibility
∗ Elected President and Chief Executive Officer in 2000, a position
he held until June 30, 2009
∗ Annual organic sales grew by 5% per year
∗ EPS increased at 12% per year
∗ Stock price more than doubled
∗ Served on The President’s Council on Jobs and Competitiveness
∗ Has been named by Best Practice Institute as one of the best 25
CEOs in the world
∗ Chief Executive Magazine’s CEO of the year in 2006
Return of A.G. Lafley

7. ∗ Ample room for growth
∗ By 2020 world’s population expected to grow by 700 million
(95% from developing markets)
∗ Middle class expected to grow by 1.4 billion (98% from
developing markets)
∗ 38% of P&G’s sales come from developing markets
∗ In 2013 returned $12.5 billion to investors through $6.5 billion in
dividends and $6 billion in share repurchases
∗ Now is an attractive entry point for a long-term investor
Promising Future

8. 02/14/15
Profitability – Operating Profit Margin

9. 02/14/15
Profitability – Net Profit Margin

10. 02/14/15
Capital Structure – Debt/Equity

11. 02/14/15
Capital Structure – Financial Leverage

12. 02/14/15
Market Valuation
Price
(May 5th)
EPS
(TTM)
P/E
(TTM)
Beta
P&G $81.70 3.75 21.78 0.39
C&P $66.90 2.32 28.81 0.34
Market Cap
Dividend
Yeild
Historical
Return(5year
s)
BV per share
P&G 221.2 billion 3.14% 0.92 24.41
C&P 61.2 billion 2.15% 1.45 2.51