90.76 USD
-1.39 (-1.51%)
We assign a fundamental rating of 4 out of 10 to PFG. PFG was compared to 149 industry peers in the Insurance industry. PFG may be in some trouble as it scores bad on both profitability and health. PFG has a correct valuation and a medium growth rate. Finally PFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PFG had positive earnings in the past year.
- PFG had a positive operating cash flow in the past year.
- 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
- The Return On Assets of PFG (0.47%) is worse than 73.15% of its industry peers.
- PFG has a Return On Equity (13.49%) which is in line with its industry peers.
- PFG's Return On Invested Capital of 0.42% is on the low side compared to the rest of the industry. PFG is outperformed by 69.13% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PFG is significantly below the industry average of 14.92%.
| 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
- Looking at the Profit Margin, with a value of 10.18%, PFG is in the better half of the industry, outperforming 62.42% of the companies in the same industry.
- In the last couple of years the Profit Margin of PFG has grown nicely.
- Looking at the Operating Margin, with a value of 10.34%, PFG is doing worse than 60.40% of the companies in the same industry.
- PFG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.34% | ||
| 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
- 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
- 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.
- With a decent Debt to FCF ratio value of 0.94, PFG is doing good in the industry, outperforming 70.47% of the companies in the same industry.
- A Debt/Equity ratio of 0.34 indicates that PFG is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.34, PFG perfoms like the industry average, outperforming 48.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC8.01%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- PFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.59%, which is quite good.
- PFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.54% yearly.
- The Revenue has decreased by -2.71% in the past year.
- 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.
- Based on estimates for the next years, PFG will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y20.22%
EPS Next 2Y16.53%
EPS Next 3Y14.26%
EPS Next 5Y12.83%
Revenue Next Year1.36%
Revenue Next 2Y4.98%
Revenue Next 3Y5.02%
Revenue Next 5Y5.53%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 11.33, the valuation of PFG can be described as reasonable.
- PFG's Price/Earnings is on the same level as the industry average.
- PFG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.58, which indicates a very decent valuation of PFG.
- PFG's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of PFG to the average of the S&P500 Index (24.32), we can say PFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 9.58 |
4.2 Price Multiples
- PFG's Enterprise Value to EBITDA is on the same level as the industry average.
- PFG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PFG is cheaper than 73.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.78 | ||
| EV/EBITDA | 8.33 |
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.
- PFG's earnings are expected to grow with 14.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)2.49
EPS Next 2Y16.53%
EPS Next 3Y14.26%
5. Dividend
5.1 Amount
- PFG has a Yearly Dividend Yield of 3.47%.
- PFG's Dividend Yield is a higher than the industry average which is at 2.53.
- PFG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y16.53%
EPS Next 3Y14.26%
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.
What is the valuation status for PFG stock?
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 3 / 10.
What are the PE and PB ratios of PRINCIPAL FINANCIAL GROUP (PFG) stock?
The Price/Earnings (PE) ratio for PRINCIPAL FINANCIAL GROUP (PFG) is 11.33 and the Price/Book (PB) ratio is 1.71.
How sustainable is the dividend of PRINCIPAL FINANCIAL GROUP (PFG) stock?
The dividend rating of PRINCIPAL FINANCIAL GROUP (PFG) is 7 / 10 and the dividend payout ratio is 43.04%.