PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
USA - NASDAQ:PFG - US74251V1026 - Common Stock
82.42 USD
+0.23 (+0.28%)
We assign a fundamental rating of 4 out of 10 to PFG. PFG was compared to 147 industry peers in the Insurance industry. There are concerns on the financial health of PFG while its profitability can be described as average. PFG is not valued too expensively and it also shows a decent growth rate. 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.
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 73.47% of its industry peers.
The Return On Equity of PFG (13.49%) is better than 61.90% of its industry peers.
With a Return On Invested Capital value of 0.42%, PFG is not doing good in the industry: 68.03% 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 below the industry average of 4.42%.
| 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
PFG has a better Profit Margin (10.18%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of PFG has grown nicely.
PFG has a Operating Margin (10.34%) which is in line with 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.
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
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 has a Debt to FCF ratio of 0.94. This is in the better half of the industry: PFG outperforms 70.07% 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 48.30% 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
WACC7.82%
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.
PFG shows a decrease in Revenue. In the last year, the revenue decreased by -2.71%.
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
Based on estimates for the next years, PFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.83% on average per year.
PFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y20.3%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
EPS Next 5Y12.83%
Revenue Next Year3.11%
Revenue Next 2Y5.33%
Revenue Next 3Y5.64%
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.
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
With a Price/Earnings ratio of 10.29, the valuation of PFG can be described as very reasonable.
PFG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PFG to the average of the S&P500 Index (25.46), we can say PFG is valued rather cheaply.
The Price/Forward Earnings ratio is 8.71, which indicates a very decent valuation of PFG.
Based on the Price/Forward Earnings ratio, PFG is valued a bit cheaper than the industry average as 63.95% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PFG to the average of the S&P500 Index (35.39), we can say PFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 8.71 |
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 61.90% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PFG is valued a bit cheaper than 74.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.4 | ||
| EV/EBITDA | 7.48 |
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 14.19% in the coming years.
PEG (NY)0.51
PEG (5Y)2.27
EPS Next 2Y16.45%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.51, PFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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 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.
PFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.04%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
NASDAQ:PFG (11/19/2025, 2:57:44 PM)
82.42
+0.23 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change-1.87%
Ins Owners0.7%
Ins Owner Change2.48%
Market Cap18.36B
Revenue(TTM)15.46B
Net Income(TTM)1.57B
Analysts67.06
Price Target89.42 (8.49%)
Short Float %1.72%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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)2.59%
PT rev (3m)2.81%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)1.9%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 8.71 | ||
| P/S | 1.19 | ||
| P/FCF | 4.4 | ||
| P/OCF | 4.32 | ||
| P/B | 1.57 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)8.01
EY9.72%
EPS(NY)9.46
Fwd EY11.48%
FCF(TTM)18.73
FCFY22.72%
OCF(TTM)19.09
OCFY23.16%
SpS69.41
BVpS52.37
TBVpS39.59
PEG (NY)0.51
PEG (5Y)2.27
Graham Number97.15
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
WACC7.82%
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 Y20.3%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
EPS Next 5Y12.83%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%
Revenue Next Year3.11%
Revenue Next 2Y5.33%
Revenue Next 3Y5.64%
Revenue Next 5Y5.53%
EBIT growth 1Y2.76%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year20.92%
EBIT Next 3Y9.62%
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 4 / 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 20.3% 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%.