PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
USA - NASDAQ:PFG - US74251V1026 - Common Stock
78.63 USD
+0.24 (+0.31%)
78.63 USD
0 (0%)
PFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. PFG may be in some trouble as it scores bad on both profitability and health. PFG is not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years PFG has been profitable.
Each year in the past 5 years PFG had a positive operating cash flow.
1.2 Ratios
PFG has a worse Return On Assets (0.35%) than 73.10% of its industry peers.
PFG's Return On Equity of 9.98% is in line compared to the rest of the industry. PFG outperforms 51.72% of its industry peers.
With a Return On Invested Capital value of 0.44%, PFG is not doing good in the industry: 66.90% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for PFG is below the industry average of 4.40%.
| 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
The Profit Margin of PFG (7.45%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PFG has grown nicely.
The Operating Margin of PFG (10.56%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PFG has declined.
| 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.
PFG has less shares outstanding than it did 1 year ago.
PFG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PFG has remained at the same level compared to a year ago.
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.
PFG's Debt to FCF ratio of 0.92 is fine compared to the rest of the industry. PFG outperforms 71.72% of its industry peers.
PFG has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, PFG is in line with its industry, outperforming 40.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC7.68%
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.
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 -0.75% in the past year.
The Revenue has been decreasing by -0.73% on average over the past years.
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
PFG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.45% yearly.
The Revenue is expected to grow by 5.87% on average over the next years.
EPS Next Y20.46%
EPS Next 2Y15.42%
EPS Next 3Y13.5%
EPS Next 5Y12.45%
Revenue Next Year3.48%
Revenue Next 2Y5.12%
Revenue Next 3Y5.49%
Revenue Next 5Y5.87%
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
A Price/Earnings ratio of 10.25 indicates a reasonable valuation of PFG.
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 27.40.
The Price/Forward Earnings ratio is 8.46, which indicates a very decent valuation of PFG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 64.83% of the companies listed in the same industry.
PFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 8.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 61.38% of the companies listed in the same industry.
PFG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PFG is cheaper than 77.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.07 | ||
| EV/EBITDA | 7.69 |
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 13.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)2.26
EPS Next 2Y15.42%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.54, PFG pays a bit more dividend than its industry peers.
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 | 3.77% |
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
PFG pays out 58.74% of its income as dividend. 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.
DP58.74%
EPS Next 2Y15.42%
EPS Next 3Y13.5%
78.63
+0.24 (+0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change0.38%
Ins Owners0.7%
Ins Owner Change1.4%
Market Cap17.52B
Analysts55
Price Target87.16 (10.85%)
Short Float %2.1%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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%
PT rev (3m)6.33%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 8.46 | ||
| P/S | 1.14 | ||
| P/FCF | 4.07 | ||
| P/OCF | 4 | ||
| P/B | 1.53 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)7.67
EY9.75%
EPS(NY)9.3
Fwd EY11.83%
FCF(TTM)19.31
FCFY24.56%
OCF(TTM)19.64
OCFY24.98%
SpS68.69
BVpS51.24
TBVpS38.38
PEG (NY)0.5
PEG (5Y)2.26
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
WACC7.68%
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 Y20.46%
EPS Next 2Y15.42%
EPS Next 3Y13.5%
EPS Next 5Y12.45%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%-10.71%
Revenue Next Year3.48%
Revenue Next 2Y5.12%
Revenue Next 3Y5.49%
Revenue Next 5Y5.87%
EBIT growth 1Y-5.78%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year20.92%
EBIT Next 3Y9.62%
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%