PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
USA - NASDAQ:PFG - US74251V1026 - Common Stock
84.47 USD
-0.15 (-0.18%)
84.47 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PFG. PFG was compared to 146 industry peers in the Insurance industry. While PFG is still in line with the averages on profitability rating, there are concerns on its financial health. PFG has a correct valuation and a medium growth rate. PFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFG was profitable.
PFG had a positive operating cash flow in the past year.
PFG had positive earnings in each of the past 5 years.
PFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PFG's Return On Assets of 0.47% is on the low side compared to the rest of the industry. PFG is outperformed by 73.29% of its industry peers.
The Return On Equity of PFG (13.49%) is better than 61.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.42%, PFG is doing worse than 68.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PFG is below the industry average of 4.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 13.49% | ||
| ROIC | 0.42% |
ROA(3y)0.78%
ROA(5y)0.67%
ROE(3y)22.52%
ROE(5y)17.16%
ROIC(3y)0.56%
ROIC(5y)0.55%
1.3 Margins
PFG has a Profit Margin of 10.18%. This is in the better half of the industry: PFG outperforms 65.07% of its industry peers.
PFG's Profit Margin has improved in the last couple of years.
PFG's Operating Margin of 10.34% is in line compared to the rest of the industry. PFG outperforms 41.10% of its industry peers.
PFG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.34% | ||
| PM (TTM) | 10.18% | ||
| GM | N/A |
OM growth 3Y-12.61%
OM growth 5Y-2.51%
PM growth 3Y-3.3%
PM growth 5Y3.17%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PFG is destroying value.
The number of shares outstanding for PFG has been reduced compared to 1 year ago.
Compared to 5 years ago, PFG has less shares outstanding
Compared to 1 year ago, PFG has about the same debt to assets ratio.
2.2 Solvency
PFG has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
The Debt to FCF ratio of PFG (0.94) is better than 71.23% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that PFG is not too dependend on debt financing.
PFG has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: PFG outperforms 48.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC7.83%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.59% over the past year.
Measured over the past 5 years, PFG shows a small growth in Earnings Per Share. The EPS has been growing by 4.54% on average per year.
PFG shows a decrease in Revenue. In the last year, the revenue decreased by -2.71%.
Measured over the past years, PFG shows a decrease in Revenue. The Revenue has been decreasing by -0.73% on average per year.
EPS 1Y (TTM)16.59%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%19.32%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%
3.2 Future
The Earnings Per Share is expected to grow by 12.83% on average over the next years. This is quite good.
PFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y20.3%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
EPS Next 5Y12.83%
Revenue Next Year3.11%
Revenue Next 2Y5.33%
Revenue Next 3Y5.64%
Revenue Next 5Y5.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.55, the valuation of PFG can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as PFG.
When comparing the Price/Earnings ratio of PFG to the average of the S&P500 Index (25.89), we can say PFG is valued rather cheaply.
PFG is valuated reasonably with a Price/Forward Earnings ratio of 8.92.
PFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFG is cheaper than 66.44% of the companies in the same industry.
PFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
PFG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PFG is cheaper than 61.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 74.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
PFG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PFG's earnings are expected to grow with 14.19% in the coming years.
PEG (NY)0.52
PEG (5Y)2.32
EPS Next 2Y16.45%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, PFG pays a bit more dividend than its industry peers.
PFG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
The dividend of PFG has a limited annual growth rate of 5.52%.
PFG has been paying a dividend for at least 10 years, so it has a reliable track record.
PFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.52%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
PFG pays out 43.04% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.04%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
84.47
-0.15 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change0.06%
Ins Owners0.7%
Ins Owner Change1.4%
Market Cap18.82B
Revenue(TTM)15.46B
Net Income(TTM)1.57B
Analysts67.06
Price Target89.42 (5.86%)
Short Float %1.67%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend2.85
Dividend Growth(5Y)5.52%
DP43.04%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.51%
Min EPS beat(2)-5.38%
Max EPS beat(2)8.39%
EPS beat(4)1
Avg EPS beat(4)0.1%
Min EPS beat(4)-5.38%
Max EPS beat(4)8.39%
EPS beat(8)2
Avg EPS beat(8)-2.96%
EPS beat(12)4
Avg EPS beat(12)-1.67%
EPS beat(16)8
Avg EPS beat(16)1.74%
Revenue beat(2)0
Avg Revenue beat(2)-6.84%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-3.75%
Revenue beat(4)0
Avg Revenue beat(4)-4.71%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)-0.49%
Revenue beat(8)3
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)1.61%
Revenue beat(16)9
Avg Revenue beat(16)1.45%
PT rev (1m)2.59%
PT rev (3m)2.81%
EPS NQ rev (1m)1.9%
EPS NQ rev (3m)1.96%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 8.92 | ||
| P/S | 1.22 | ||
| P/FCF | 4.51 | ||
| P/OCF | 4.43 | ||
| P/B | 1.61 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)8.01
EY9.48%
EPS(NY)9.46
Fwd EY11.2%
FCF(TTM)18.73
FCFY22.17%
OCF(TTM)19.09
OCFY22.6%
SpS69.41
BVpS52.37
TBVpS39.59
PEG (NY)0.52
PEG (5Y)2.32
Graham Number97.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 13.49% | ||
| ROCE | 0.48% | ||
| ROIC | 0.42% | ||
| ROICexc | 0.43% | ||
| ROICexgc | 1.2% | ||
| OM | 10.34% | ||
| PM (TTM) | 10.18% | ||
| GM | N/A | ||
| FCFM | 26.98% |
ROA(3y)0.78%
ROA(5y)0.67%
ROE(3y)22.52%
ROE(5y)17.16%
ROIC(3y)0.56%
ROIC(5y)0.55%
ROICexc(3y)0.57%
ROICexc(5y)0.56%
ROICexgc(3y)1.58%
ROICexgc(5y)1.52%
ROCE(3y)0.64%
ROCE(5y)0.63%
ROICexgc growth 3Y-8.99%
ROICexgc growth 5Y-5.01%
ROICexc growth 3Y-10.54%
ROICexc growth 5Y-5.59%
OM growth 3Y-12.61%
OM growth 5Y-2.51%
PM growth 3Y-3.3%
PM growth 5Y3.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 11.71% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 186.07% | ||
| Profit Quality | 265.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.83%
ROIC/WACC0.05
Cap/Depr(3y)13.6%
Cap/Depr(5y)15.82%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.72%
Profit Quality(3y)315.01%
Profit Quality(5y)280.11%
High Growth Momentum
Growth
EPS 1Y (TTM)16.59%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%19.32%
EPS Next Y20.3%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
EPS Next 5Y12.83%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%
Revenue Next Year3.11%
Revenue Next 2Y5.33%
Revenue Next 3Y5.64%
Revenue Next 5Y5.53%
EBIT growth 1Y2.76%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year20.92%
EBIT Next 3Y9.62%
EBIT Next 5YN/A
FCF growth 1Y6.76%
FCF growth 3Y13.65%
FCF growth 5Y-3.29%
OCF growth 1Y5.99%
OCF growth 3Y12.66%
OCF growth 5Y-3.47%
PRINCIPAL FINANCIAL GROUP / PFG FAQ
Can you provide the ChartMill fundamental rating for PRINCIPAL FINANCIAL GROUP?
ChartMill assigns a fundamental rating of 4 / 10 to PFG.
Can you provide the valuation status for PRINCIPAL FINANCIAL GROUP?
ChartMill assigns a valuation rating of 6 / 10 to PRINCIPAL FINANCIAL GROUP (PFG). This can be considered as Fairly Valued.
What is the profitability of PFG stock?
PRINCIPAL FINANCIAL GROUP (PFG) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for PFG stock?
The Earnings per Share (EPS) of PRINCIPAL FINANCIAL GROUP (PFG) is expected to grow by 20.3% in the next year.
Can you provide the dividend sustainability for PFG stock?
The dividend rating of PRINCIPAL FINANCIAL GROUP (PFG) is 7 / 10 and the dividend payout ratio is 43.04%.