PRINCIPAL FINANCIAL GROUP (PFG)
US74251V1026 - Common Stock
Overall PFG gets a fundamental rating of 5 out of 10. We evaluated PFG against 141 industry peers in the Insurance industry. PFG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PFG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PFG was profitable.
In the past year PFG had a positive cash flow from operations.
Each year in the past 5 years PFG has been profitable.
PFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PFG (-0.06%) is worse than 77.14% of its industry peers.
PFG's Return On Equity of -1.83% is on the low side compared to the rest of the industry. PFG is outperformed by 77.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.41%, PFG is doing worse than 65.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PFG is below the industry average of 4.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -1.83% | ||
| ROIC | 0.41% |
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
In the last couple of years the Profit Margin of PFG has declined.
PFG has a Operating Margin of 9.79%. This is comparable to the rest of the industry: PFG outperforms 51.43% of its industry peers.
In the last couple of years the Operating Margin of PFG has remained more or less at the same level.
PFG does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.79% | ||
| PM (TTM) | N/A | ||
| 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
PFG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PFG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFG has less shares outstanding
The debt/assets ratio for PFG has been reduced compared to a year ago.
2.2 Solvency
PFG has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
PFG has a Debt to FCF ratio of 0.99. This is in the better half of the industry: PFG outperforms 66.43% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that PFG is not too dependend on debt financing.
The Debt to Equity ratio of PFG (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC8.14%
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.
PFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.48% yearly.
The Revenue has grown by 13.53% in the past year. This is quite good.
The Revenue has been growing slightly by 0.67% on average over the past years.
EPS 1Y (TTM)6.84%
EPS 3Y9.92%
EPS 5Y3.48%
EPS Q2Q%2.33%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y0.02%
Revenue growth 5Y0.67%
Sales Q2Q%2.18%
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 12.22% on average per year.
PFG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.00% yearly.
EPS Next Y8.41%
EPS Next 2Y13.94%
EPS Next 3Y12.92%
EPS Next 5Y12.22%
Revenue Next Year11.31%
Revenue Next 2Y8.48%
Revenue Next 3Y7.44%
Revenue Next 5Y8%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PFG is valuated reasonably with a Price/Earnings ratio of 11.25.
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 (27.73), we can say PFG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.08, the valuation of PFG can be described as reasonable.
67.14% of the companies in the same industry are more expensive than PFG, based on the Price/Forward Earnings ratio.
PFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
72.86% of the companies in the same industry are more expensive than PFG, based on the Enterprise Value to EBITDA ratio.
PFG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PFG is cheaper than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.41 | ||
| EV/EBITDA | 6.63 |
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 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)3.24
EPS Next 2Y13.94%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.88%. 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 4.33.
PFG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
The dividend of PFG has a limited annual growth rate of 4.37%.
PFG has been paying a dividend for at least 10 years, so it has a reliable track record.
PFG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.37%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
PFG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
PFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-316.21%
EPS Next 2Y13.94%
EPS Next 3Y12.92%
PRINCIPAL FINANCIAL GROUP
NASDAQ:PFG (12/20/2024, 8:00:00 PM)
After market: 77.3 0 (0%)77.3
+2.12 (+2.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners72.79%
Inst Owner Change-1.17%
Ins Owners1.04%
Ins Owner Change0.15%
Market Cap17.68B
Analysts55.24
Price Target91.71 (18.64%)
Short Float %1.48%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Dividend Growth(5Y)4.37%
DP-316.21%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13%
Min EPS beat(2)-13.6%
Max EPS beat(2)-12.39%
EPS beat(4)1
Avg EPS beat(4)-6.01%
Min EPS beat(4)-13.6%
Max EPS beat(4)7.54%
EPS beat(8)3
Avg EPS beat(8)-2.56%
EPS beat(12)7
Avg EPS beat(12)2.29%
EPS beat(16)11
Avg EPS beat(16)3.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)6.25%
Revenue beat(4)3
Avg Revenue beat(4)4.81%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)17.61%
Revenue beat(8)6
Avg Revenue beat(8)4.77%
Revenue beat(12)9
Avg Revenue beat(12)3.5%
Revenue beat(16)9
Avg Revenue beat(16)-0.12%
PT rev (1m)4.95%
PT rev (3m)5.89%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)1.74%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.08 | ||
| P/S | 1.11 | ||
| P/FCF | 4.41 | ||
| P/OCF | 4.33 | ||
| P/B | 1.57 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)6.87
EY8.89%
EPS(NY)8.52
Fwd EY11.02%
FCF(TTM)17.52
FCFY22.67%
OCF(TTM)17.87
OCFY23.12%
SpS69.48
BVpS49.13
TBVpS35.92
PEG (NY)1.34
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -1.83% | ||
| ROCE | 0.48% | ||
| ROIC | 0.41% | ||
| ROICexc | 0.42% | ||
| ROICexgc | 1.19% | ||
| OM | 9.79% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 25.22% |
ROA(3y)0.79%
ROA(5y)0.67%
ROE(3y)21.07%
ROE(5y)16.24%
ROIC(3y)0.6%
ROIC(5y)0.57%
ROICexc(3y)0.61%
ROICexc(5y)0.57%
ROICexgc(3y)1.66%
ROICexgc(5y)1.55%
ROCE(3y)0.71%
ROCE(5y)0.66%
ROICexcg growth 3Y4.65%
ROICexcg growth 5Y-2.85%
ROICexc growth 3Y2.3%
ROICexc growth 5Y-3.93%
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
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 11.39% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 181.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.14%
ROIC/WACC0.05
Cap/Depr(3y)17.57%
Cap/Depr(5y)18.24%
Cap/Sales(3y)0.81%
Cap/Sales(5y)0.8%
Profit Quality(3y)283.97%
Profit Quality(5y)299.3%
High Growth Momentum
Growth
EPS 1Y (TTM)6.84%
EPS 3Y9.92%
EPS 5Y3.48%
EPS Q2Q%2.33%
EPS Next Y8.41%
EPS Next 2Y13.94%
EPS Next 3Y12.92%
EPS Next 5Y12.22%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y0.02%
Revenue growth 5Y0.67%
Sales Q2Q%2.18%
Revenue Next Year11.31%
Revenue Next 2Y8.48%
Revenue Next 3Y7.44%
Revenue Next 5Y8%
EBIT growth 1Y-26.6%
EBIT growth 3Y3.06%
EBIT growth 5Y0.46%
EBIT Next Year16.58%
EBIT Next 3Y11.15%
EBIT Next 5YN/A
FCF growth 1Y32.97%
FCF growth 3Y0.55%
FCF growth 5Y-6.13%
OCF growth 1Y30.96%
OCF growth 3Y0.48%
OCF growth 5Y-5.96%