PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
USA - NASDAQ:PFG - US74251V1026 - Common Stock
80.86 USD
+0.77 (+0.96%)
80.86 USD
0 (0%)
PFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. PFG may be in some trouble as it scores bad on both profitability and health. PFG is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years PFG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PFG (0.35%) is worse than 70.55% of its industry peers.
With a Return On Equity value of 9.98%, PFG perfoms like the industry average, outperforming 51.37% of the companies in the same industry.
The Return On Invested Capital of PFG (0.44%) is worse than 65.07% of its industry peers.
PFG had an Average Return On Invested Capital over the past 3 years of 0.56%. This is below the industry average of 4.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 9.98% | ||
| ROIC | 0.44% |
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's Profit Margin of 7.45% is in line compared to the rest of the industry. PFG outperforms 52.05% of its industry peers.
PFG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.56%, PFG is in line with its industry, outperforming 49.32% of the companies in the same industry.
PFG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | 7.45% | ||
| 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
PFG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PFG has less shares outstanding
PFG has less shares outstanding than it did 5 years ago.
PFG has about the same debt/assets ratio as last year.
2.2 Solvency
PFG has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.92, PFG is doing good in the industry, outperforming 71.23% of the companies in the same industry.
PFG has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
PFG's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. PFG outperforms 41.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC7.74%
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 12.30% 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.
The Revenue has decreased by -0.75% in the past year.
PFG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.73% yearly.
EPS 1Y (TTM)12.3%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%32.52%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%-10.71%
3.2 Future
Based on estimates for the next years, PFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.45% on average per year.
Based on estimates for the next years, PFG will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y20.37%
EPS Next 2Y15.53%
EPS Next 3Y13.41%
EPS Next 5Y12.45%
Revenue Next Year2.7%
Revenue Next 2Y5%
Revenue Next 3Y5.35%
Revenue Next 5Y5.87%
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 10.54, the valuation of PFG can be described as reasonable.
PFG's Price/Earnings ratio is a bit cheaper when compared to the industry. PFG is cheaper than 63.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of PFG to the average of the S&P500 Index (27.20), we can say PFG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.68 indicates a reasonable valuation of PFG.
66.44% of the companies in the same industry are more expensive than PFG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PFG to the average of the S&P500 Index (22.70), we can say PFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFG is valued a bit cheaper than 61.64% of the companies in the same industry.
76.03% of the companies in the same industry are more expensive than PFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.19 | ||
| EV/EBITDA | 7.86 |
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 13.41% in the coming years.
PEG (NY)0.52
PEG (5Y)2.32
EPS Next 2Y15.53%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
PFG's Dividend Yield is a higher than the industry average which is at 3.43.
PFG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
58.74% of the earnings are spent on dividend by PFG. 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.
DP58.74%
EPS Next 2Y15.53%
EPS Next 3Y13.41%
80.86
+0.77 (+0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-1.59%
Ins Owners1.12%
Ins Owner Change1.34%
Market Cap18.01B
Analysts67.78
Price Target87.16 (7.79%)
Short Float %2.11%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend2.85
Dividend Growth(5Y)5.52%
DP58.74%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.25%
Min EPS beat(2)-1.89%
Max EPS beat(2)8.39%
EPS beat(4)1
Avg EPS beat(4)-1.96%
Min EPS beat(4)-13.6%
Max EPS beat(4)8.39%
EPS beat(8)3
Avg EPS beat(8)-1.63%
EPS beat(12)5
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)2.38%
Revenue beat(2)0
Avg Revenue beat(2)-5.21%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.55%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)-0.49%
Revenue beat(8)4
Avg Revenue beat(8)0.57%
Revenue beat(12)7
Avg Revenue beat(12)2.37%
Revenue beat(16)9
Avg Revenue beat(16)0.75%
PT rev (1m)0.21%
PT rev (3m)6.33%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)3.11%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-2.42%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.18 | ||
| P/FCF | 4.19 | ||
| P/OCF | 4.12 | ||
| P/B | 1.58 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)7.67
EY9.49%
EPS(NY)9.32
Fwd EY11.52%
FCF(TTM)19.31
FCFY23.89%
OCF(TTM)19.64
OCFY24.29%
SpS68.69
BVpS51.24
TBVpS38.38
PEG (NY)0.52
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 9.98% | ||
| ROCE | 0.5% | ||
| ROIC | 0.44% | ||
| ROICexc | 0.44% | ||
| ROICexgc | 1.23% | ||
| OM | 10.56% | ||
| PM (TTM) | 7.45% | ||
| GM | N/A | ||
| FCFM | 28.12% |
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%
ROICexcg growth 3Y-8.99%
ROICexcg 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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 10.72% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 189.95% | ||
| Profit Quality | 377.51% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.74%
ROIC/WACC0.06
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)12.3%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%32.52%
EPS Next Y20.37%
EPS Next 2Y15.53%
EPS Next 3Y13.41%
EPS Next 5Y12.45%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%-10.71%
Revenue Next Year2.7%
Revenue Next 2Y5%
Revenue Next 3Y5.35%
Revenue Next 5Y5.87%
EBIT growth 1Y-5.78%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year13.68%
EBIT Next 3Y7.61%
EBIT Next 5YN/A
FCF growth 1Y7.16%
FCF growth 3Y13.65%
FCF growth 5Y-3.29%
OCF growth 1Y5.91%
OCF growth 3Y12.66%
OCF growth 5Y-3.47%