87.52 USD
+1.59 (+1.85%)
87.52 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PFG. PFG was compared to 147 industry peers in the Insurance industry. Both the profitability and financial health of PFG have multiple concerns. PFG has a correct valuation and a medium growth rate. Finally PFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFG was profitable.
PFG had a positive operating cash flow in the past year.
In the past 5 years PFG has always been profitable.
In the past 5 years PFG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PFG (0.47%) is worse than 75.68% of its industry peers.
With a Return On Equity value of 13.49%, PFG perfoms like the industry average, outperforming 59.46% 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: 69.59% 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 14.89%.
| 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
The Profit Margin of PFG (10.18%) is better than 62.16% of its industry peers.
PFG's Profit Margin has improved in the last couple of years.
PFG has a Operating Margin of 10.34%. This is in the lower half of the industry: PFG underperforms 60.81% 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.
The number of shares outstanding for PFG has been reduced compared to 1 year ago.
Compared to 5 years ago, PFG has less shares outstanding
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 0.94. 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.
PFG has a better Debt to FCF ratio (0.94) than 69.59% 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.
With a Debt to Equity ratio value of 0.34, PFG perfoms like the industry average, outperforming 47.97% 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
WACC7.87%
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 16.59% 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 -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 Y20.22%
EPS Next 2Y16.53%
EPS Next 3Y14.26%
EPS Next 5Y12.83%
Revenue Next Year1.07%
Revenue Next 2Y4.86%
Revenue Next 3Y4.92%
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.
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
PFG is valuated reasonably with a Price/Earnings ratio of 10.93.
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 (26.49), we can say PFG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.23, 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 61.49% of the companies listed in the same industry.
PFG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
61.49% of the companies in the same industry are more expensive than PFG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PFG is valued a bit cheaper than the industry average as 73.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.61 | ||
| EV/EBITDA | 7.88 |
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.
A more expensive valuation may be justified as PFG's earnings are expected to grow with 14.26% in the coming years.
PEG (NY)0.54
PEG (5Y)2.41
EPS Next 2Y16.53%
EPS Next 3Y14.26%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.68%. 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 3.48.
Compared to an average S&P500 Dividend Yield of 2.31, PFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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 43.04% 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.
DP43.04%
EPS Next 2Y16.53%
EPS Next 3Y14.26%
87.52
+1.59 (+1.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.43%
Inst Owner Change-1.32%
Ins Owners0.71%
Ins Owner Change0.39%
Market Cap19.23B
Revenue(TTM)15.46B
Net Income(TTM)1.57B
Analysts67.06
Price Target90.87 (3.83%)
Short Float %2.12%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend2.85
Dividend Growth(5Y)5.52%
DP43.04%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.51%
Min EPS beat(2)-5.38%
Max EPS beat(2)8.39%
EPS beat(4)1
Avg EPS beat(4)0.1%
Min EPS beat(4)-5.38%
Max EPS beat(4)8.39%
EPS beat(8)2
Avg EPS beat(8)-2.96%
EPS beat(12)4
Avg EPS beat(12)-1.67%
EPS beat(16)8
Avg EPS beat(16)1.74%
Revenue beat(2)0
Avg Revenue beat(2)-6.84%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-3.75%
Revenue beat(4)0
Avg Revenue beat(4)-4.71%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)-0.49%
Revenue beat(8)3
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)1.61%
Revenue beat(16)9
Avg Revenue beat(16)1.45%
PT rev (1m)1.62%
PT rev (3m)4.25%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-3.04%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 9.23 | ||
| P/S | 1.24 | ||
| P/FCF | 4.61 | ||
| P/OCF | 4.52 | ||
| P/B | 1.65 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)8.01
EY9.15%
EPS(NY)9.48
Fwd EY10.83%
FCF(TTM)18.99
FCFY21.7%
OCF(TTM)19.35
OCFY22.11%
SpS70.38
BVpS53.1
TBVpS40.14
PEG (NY)0.54
PEG (5Y)2.41
Graham Number97.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 13.49% | ||
| ROCE | 0.48% | ||
| ROIC | 0.42% | ||
| ROICexc | 0.43% | ||
| ROICexgc | 1.2% | ||
| OM | 10.34% | ||
| PM (TTM) | 10.18% | ||
| GM | N/A | ||
| FCFM | 26.98% |
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%
ROICexgc growth 3Y-8.99%
ROICexgc 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-Score8
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 11.71% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 186.07% | ||
| Profit Quality | 265.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.87%
ROIC/WACC0.05
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)16.59%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%19.32%
EPS Next Y20.22%
EPS Next 2Y16.53%
EPS Next 3Y14.26%
EPS Next 5Y12.83%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%
Revenue Next Year1.07%
Revenue Next 2Y4.86%
Revenue Next 3Y4.92%
Revenue Next 5Y5.53%
EBIT growth 1Y2.76%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year19.48%
EBIT Next 3Y10.3%
EBIT Next 5YN/A
FCF growth 1Y6.76%
FCF growth 3Y13.65%
FCF growth 5Y-3.29%
OCF growth 1Y5.99%
OCF growth 3Y12.66%
OCF growth 5Y-3.47%
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.
Can you provide the valuation status for PRINCIPAL FINANCIAL GROUP?
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.
Can you provide the expected EPS growth for PFG stock?
The Earnings per Share (EPS) of PRINCIPAL FINANCIAL GROUP (PFG) is expected to grow by 20.22% in the next year.
Can you provide the dividend sustainability for PFG stock?
The dividend rating of PRINCIPAL FINANCIAL GROUP (PFG) is 7 / 10 and the dividend payout ratio is 43.04%.