Procter & Gamble (PG, Financial) has announced its financial outlook for fiscal 2025, maintaining an optimistic stance on its tax and shareholder return strategies. The company anticipates a core effective tax rate consistent with the previous fiscal year, signaling stable tax planning initiatives.
Capital expenditure for the upcoming fiscal year is forecasted to account for 4% to 5% of net sales, reflecting P&G's commitment to reinvesting in business growth and operational efficiencies. This strategic allocation underscores the company's focus on sustaining its market positions and enhancing productivity.
In terms of cash flow, P&G aims to achieve a 90% adjusted free cash flow productivity, underscoring its efficiency in converting revenue into free cash. This metric remains a critical indicator of the company's financial health and operational prowess.
Further underscoring its commitment to returning value to shareholders, P&G plans to distribute approximately $10 billion in dividends. Additionally, the company has outlined a share repurchase program targeting $6 billion to $7 billion in common stock buybacks within the fiscal year. These moves indicate a robust strategy to enhance shareholder value and return excess capital.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Procter & Gamble Co (PG, Financial) is $178.81 with a high estimate of $200.00 and a low estimate of $144.22. The average target implies an upside of 7.89% from the current price of $165.73. More detailed estimate data can be found on the Procter & Gamble Co (PG) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Procter & Gamble Co's (PG, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Procter & Gamble Co (PG, Financial) in one year is $166.64, suggesting a upside of 0.55% from the current price of $165.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Procter & Gamble Co (PG) Summary page.
