94.4 USD
+0.35 (+0.37%)
We assign a fundamental rating of 4 out of 10 to PFG. PFG was compared to 148 industry peers in the Insurance industry. There are concerns on the financial health of PFG while its profitability can be described as average. PFG has a decent growth rate and is not valued too expensively. Finally 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.
- 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
- With a Return On Assets value of 0.47%, PFG is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
- With a decent Return On Equity value of 13.49%, PFG is doing good in the industry, outperforming 60.14% of the companies in the same industry.
- With a Return On Invested Capital value of 0.42%, PFG is not doing good in the industry: 68.92% of the companies in the same industry are doing better.
- PFG had an Average Return On Invested Capital over the past 3 years of 0.56%. This is significantly below the industry average of 14.94%.
| 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
- With a decent Profit Margin value of 10.18%, PFG is doing good in the industry, outperforming 62.84% of the companies in the same industry.
- In the last couple of years the Profit Margin of PFG has grown nicely.
- PFG has a Operating Margin of 10.34%. This is in the lower half of the industry: PFG underperforms 60.14% of its industry peers.
- In the last couple of years the Operating Margin of PFG has declined.
| 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.
- Compared to 1 year ago, PFG has less shares outstanding
- The number of shares outstanding for PFG has been reduced compared to 5 years ago.
- Compared to 1 year ago, PFG has about the same debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of PFG is 0.94, which is an excellent value as it means it would take PFG, only 0.94 years of fcf income to pay off all of its debts.
- PFG's Debt to FCF ratio of 0.94 is fine compared to the rest of the industry. PFG outperforms 70.27% of its industry peers.
- PFG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.34, PFG is in line with its industry, outperforming 48.65% 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.
- 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 -2.71% 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)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.
- The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y20%
EPS Next 2Y16.4%
EPS Next 3Y14.25%
EPS Next 5Y12.83%
Revenue Next Year1.36%
Revenue Next 2Y4.98%
Revenue Next 3Y5.02%
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.
- 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
- With a Price/Earnings ratio of 11.79, the valuation of PFG can be described as very reasonable.
- PFG's Price/Earnings ratio is in line with the industry average.
- PFG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 9.98, the valuation of PFG can be described as reasonable.
- The rest of the industry has a similar Price/Forward Earnings ratio as PFG.
- PFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFG is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 72.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.97 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
- The 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 14.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)2.6
EPS Next 2Y16.4%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.43%, PFG has a reasonable but not impressive dividend return.
- PFG's Dividend Yield is a higher than the industry average which is at 2.41.
- Compared to an average S&P500 Dividend Yield of 1.82, PFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
- The dividend of PFG has a limited annual growth rate of 5.52%.
- 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)5.52%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
- 43.04% 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.
DP43.04%
EPS Next 2Y16.4%
EPS Next 3Y14.25%
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 4 / 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 11.79 and the Price/Book (PB) ratio is 1.78.
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%.