01-29-2019, 12:19 AM
What are your thoughts currently?
The way I see it is that they have had a pretty tough few years behind them. Now we are finally starting to see a turn for the better.
But
-revenues are still flat.
-EPS is only going up due to repurchases and tax cuts.
-Lots of headwinds that they are stating, such as currency (the dollar doesn't seem that strong right now tbh), transportation costs etc.
-The dividend is taking out a big chunk of cashflow while only yielding 3%
-interest payments jumped significantly. I don't see their debt as a problem (yet) but maybe, at some point, they will need to do something else than taking on more debt.
It's trading at P/E of a little over 21 right now (using $4.40 as EPS) and the share price is a couple of dollars shy of all time high.
PG is most definitely not a buy.
But would you hold or sell?
The way I see it is that they have had a pretty tough few years behind them. Now we are finally starting to see a turn for the better.
But
-revenues are still flat.
-EPS is only going up due to repurchases and tax cuts.
-Lots of headwinds that they are stating, such as currency (the dollar doesn't seem that strong right now tbh), transportation costs etc.
-The dividend is taking out a big chunk of cashflow while only yielding 3%
-interest payments jumped significantly. I don't see their debt as a problem (yet) but maybe, at some point, they will need to do something else than taking on more debt.
It's trading at P/E of a little over 21 right now (using $4.40 as EPS) and the share price is a couple of dollars shy of all time high.
PG is most definitely not a buy.
But would you hold or sell?