PRINCIPAL FINANCIAL GROUP (PFG)
US74251V1026 - Common Stock
PFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. While PFG seems to be doing ok healthwise, there are quite some concerns on its profitability. PFG has a decent growth rate and is not valued too expensively. PFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFG had positive earnings in the past year.
In the past year PFG had a positive cash flow from operations.
In the past 5 years PFG has always been profitable.
PFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PFG's Return On Assets of 0.41% is on the low side compared to the rest of the industry. PFG is outperformed by 67.63% of its industry peers.
PFG has a Return On Equity (11.44%) which is comparable to the rest of the industry.
PFG has a Return On Invested Capital of 0.47%. This is in the lower half of the industry: PFG underperforms 64.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFG is below the industry average of 4.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 11.44% | ||
| ROIC | 0.47% |
ROA(3y)0.79%
ROA(5y)0.67%
ROE(3y)21.07%
ROE(5y)16.24%
ROIC(3y)0.6%
ROIC(5y)0.57%
1.3 Margins
Looking at the Profit Margin, with a value of 8.17%, PFG is in line with its industry, outperforming 55.40% of the companies in the same industry.
PFG's Profit Margin has declined in the last couple of years.
PFG has a Operating Margin of 11.13%. This is comparable to the rest of the industry: PFG outperforms 52.52% of its industry peers.
PFG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.13% | ||
| PM (TTM) | 8.17% | ||
| GM | N/A |
OM growth 3Y3.04%
OM growth 5Y-0.21%
PM growth 3Y-23.59%
PM growth 5Y-17.18%
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.
PFG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PFG has an improved debt to assets ratio.
2.2 Solvency
PFG has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
PFG's Debt to FCF ratio of 1.01 is fine compared to the rest of the industry. PFG outperforms 66.91% of its industry peers.
PFG has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
PFG has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC8.06%
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 been growing slightly by 6.84% 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 3.48% on average per year.
The Revenue has been growing slightly by 6.60% in the past year.
Measured over the past years, PFG shows a small growth in Revenue. The Revenue has been growing by 0.67% on average per year.
EPS 1Y (TTM)6.84%
EPS 3Y9.92%
EPS 5Y3.48%
EPS Q2Q%2.33%
Revenue 1Y (TTM)6.6%
Revenue growth 3Y0.02%
Revenue growth 5Y0.67%
Sales Q2Q%2.18%
3.2 Future
The Earnings Per Share is expected to grow by 12.35% 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 7.95% yearly.
EPS Next Y8.99%
EPS Next 2Y13.98%
EPS Next 3Y12.96%
EPS Next 5Y12.35%
Revenue Next Year11.44%
Revenue Next 2Y8.31%
Revenue Next 3Y7.32%
Revenue Next 5Y7.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 12.33, PFG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of PFG is on the same level as its industry peers.
PFG is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.94 indicates a reasonable valuation of PFG.
PFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFG is cheaper than 63.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, PFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFG is valued a bit cheaper than the industry average as 70.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PFG is valued a bit cheaper than 71.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
PFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PFG's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)3.55
EPS Next 2Y13.98%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.38%, PFG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.25, PFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, PFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of PFG has a limited annual growth rate of 4.37%.
PFG has paid a dividend for at least 10 years, which is a reliable track record.
PFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.37%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
51.00% of the earnings are spent on dividend by PFG. This is a bit on the high side, but may be sustainable.
PFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51%
EPS Next 2Y13.98%
EPS Next 3Y12.96%
PRINCIPAL FINANCIAL GROUP
NASDAQ:PFG (11/21/2024, 4:01:09 PM)
After market: 84.7 0 (0%)84.7
+0.55 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 9.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.37
PEG (5Y)3.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 11.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.13% | ||
| PM (TTM) | 8.17% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.84%
EPS 3Y9.92%
EPS 5Y
EPS Q2Q%
EPS Next Y8.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.6%
Revenue growth 3Y0.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y