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PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58 (PRS) Stock Fundamental Analysis

NYSE:PRS - New York Stock Exchange, Inc. - US7443208050

23.98  -0.1 (-0.42%)

Fundamental Rating

4

Overall PRS gets a fundamental rating of 4 out of 10. We evaluated PRS against 143 industry peers in the Insurance industry. PRS has a bad profitability rating. Also its financial health evaluation is rather negative. PRS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally PRS also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

PRS had positive earnings in the past year.
PRS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PRS reported negative net income in multiple years.
PRS had a positive operating cash flow in each of the past 5 years.
PRS Yearly Net Income VS EBIT VS OCF VS FCFPRS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

1.2 Ratios

PRS has a worse Return On Assets (0.53%) than 71.63% of its industry peers.
The Return On Equity of PRS (13.33%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 0.55%, PRS is not doing good in the industry: 64.54% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA 0.53%
ROE 13.33%
ROIC 0.55%
ROA(3y)0.34%
ROA(5y)0.29%
ROE(3y)5.83%
ROE(5y)4.69%
ROIC(3y)N/A
ROIC(5y)N/A
PRS Yearly ROA, ROE, ROICPRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

PRS has a Profit Margin (5.78%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PRS has declined.
PRS has a Operating Margin of 7.41%. This is comparable to the rest of the industry: PRS outperforms 41.13% of its industry peers.
In the last couple of years the Operating Margin of PRS has declined.
Industry RankSector Rank
OM 7.41%
PM (TTM) 5.78%
GM N/A
OM growth 3YN/A
OM growth 5Y-5.72%
PM growth 3YN/A
PM growth 5Y-6.47%
GM growth 3YN/A
GM growth 5YN/A
PRS Yearly Profit, Operating, Gross MarginsPRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

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3

2. Health

2.1 Basic Checks

PRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PRS has less shares outstanding
PRS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRS has been reduced compared to a year ago.
PRS Yearly Shares OutstandingPRS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
PRS Yearly Total Debt VS Total AssetsPRS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B 800B

2.2 Solvency

The Debt to FCF ratio of PRS is 2.95, which is a good value as it means it would take PRS, 2.95 years of fcf income to pay off all of its debts.
PRS has a Debt to FCF ratio (2.95) which is in line with its industry peers.
A Debt/Equity ratio of 0.69 indicates that PRS is somewhat dependend on debt financing.
The Debt to Equity ratio of PRS (0.69) is worse than 83.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF 2.95
Altman-Z N/A
ROIC/WACC0.07
WACC8.06%
PRS Yearly LT Debt VS Equity VS FCFPRS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PRS Yearly Current Assets VS Current LiabilitesPRS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

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3. Growth

3.1 Past

PRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.69%, which is quite good.
The Earnings Per Share has been decreasing by -0.10% on average over the past years.
PRS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
Measured over the past years, PRS shows a decrease in Revenue. The Revenue has been decreasing by -3.13% on average per year.
EPS 1Y (TTM)9.69%
EPS 3Y4.07%
EPS 5Y-0.1%
EPS Q2Q%1.16%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-1.82%
Revenue growth 5Y-3.13%
Sales Q2Q%92.39%

3.2 Future

The Earnings Per Share is expected to grow by 1.06% on average over the next years.
Based on estimates for the next years, PRS will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y16.21%
EPS Next 2Y13.16%
EPS Next 3Y10.82%
EPS Next 5Y1.06%
Revenue Next Year38.32%
Revenue Next 2Y10.25%
Revenue Next 3Y9.3%
Revenue Next 5Y2.81%

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.
PRS Yearly Revenue VS EstimatesPRS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20B 40B 60B
PRS Yearly EPS VS EstimatesPRS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 1.91, the valuation of PRS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PRS indicates a rather cheap valuation: PRS is cheaper than 89.36% of the companies listed in the same industry.
PRS is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 1.61 indicates a rather cheap valuation of PRS.
PRS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRS is cheaper than 90.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRS to the average of the S&P500 Index (24.44), we can say PRS is valued rather cheaply.
Industry RankSector Rank
PE 1.91
Fwd PE 1.61
PRS Price Earnings VS Forward Price EarningsPRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

PRS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRS is cheaper than 91.49% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.18
EV/EBITDA N/A
PRS Per share dataPRS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

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.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y13.16%
EPS Next 3Y10.82%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.39%, PRS is a good candidate for dividend investing.
PRS's Dividend Yield is rather good when compared to the industry average which is at 2.99. PRS pays more dividend than 85.11% of the companies in the same industry.
PRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 4.39%

5.2 History

On average, the dividend of PRS grows each year by 6.90%, which is quite nice.
PRS has been paying a dividend for over 5 years, so it has already some track record.
PRS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.9%
Div Incr Years0
Div Non Decr Years3
PRS Yearly Dividends per sharePRS Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

PRS pays out 46.34% of its income as dividend. This is a bit on the high side, but may be sustainable.
PRS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.34%
EPS Next 2Y13.16%
EPS Next 3Y10.82%
PRS Yearly Income VS Free CF VS DividendPRS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B
PRS Dividend Payout.PRS Dividend Payout, showing the Payout Ratio.PRS Dividend Payout.PayoutRetained Earnings

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PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58

NYSE:PRS (1/22/2025, 1:54:30 PM)

23.98

-0.1 (-0.42%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-04 2025-02-04/amc
Inst Owners59.48%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap8.56B
Analysts69
Price Target27.21 (13.47%)
Short Float %0.02%
Short Ratio1.64
Dividend
Industry RankSector Rank
Dividend Yield 4.39%
Yearly Dividend5.09
Dividend Growth(5Y)6.9%
DP46.34%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-31 2025-01-31 (0.3515625)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.85%
Min EPS beat(2)-2.73%
Max EPS beat(2)-0.98%
EPS beat(4)0
Avg EPS beat(4)-1.75%
Min EPS beat(4)-2.73%
Max EPS beat(4)-0.98%
EPS beat(8)1
Avg EPS beat(8)-2.04%
EPS beat(12)4
Avg EPS beat(12)1.01%
EPS beat(16)8
Avg EPS beat(16)8.1%
Revenue beat(2)2
Avg Revenue beat(2)15.4%
Min Revenue beat(2)1.3%
Max Revenue beat(2)29.51%
Revenue beat(4)3
Avg Revenue beat(4)19.56%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)48.21%
Revenue beat(8)4
Avg Revenue beat(8)8.36%
Revenue beat(12)7
Avg Revenue beat(12)10.01%
Revenue beat(16)11
Avg Revenue beat(16)13.67%
PT rev (1m)4.86%
PT rev (3m)6.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)13.14%
Valuation
Industry RankSector Rank
PE 1.91
Fwd PE 1.61
P/S 0.12
P/FCF 1.18
P/OCF 1.18
P/B 0.28
P/tB 0.28
EV/EBITDA N/A
EPS(TTM)12.57
EY52.42%
EPS(NY)14.88
Fwd EY62.05%
FCF(TTM)20.4
FCFY85.07%
OCF(TTM)20.4
OCFY85.07%
SpS196.56
BVpS85.2
TBVpS85.2
PEG (NY)0.12
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.53%
ROE 13.33%
ROCE 0.69%
ROIC 0.55%
ROICexc 0.56%
ROICexgc 0.85%
OM 7.41%
PM (TTM) 5.78%
GM N/A
FCFM 10.38%
ROA(3y)0.34%
ROA(5y)0.29%
ROE(3y)5.83%
ROE(5y)4.69%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.51%
ROICexc growth 3YN/A
ROICexc growth 5Y-6.52%
OM growth 3YN/A
OM growth 5Y-5.72%
PM growth 3YN/A
PM growth 5Y-6.47%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF 2.95
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion N/A
Profit Quality 179.61%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC8.06%
ROIC/WACC0.07
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.69%
EPS 3Y4.07%
EPS 5Y-0.1%
EPS Q2Q%1.16%
EPS Next Y16.21%
EPS Next 2Y13.16%
EPS Next 3Y10.82%
EPS Next 5Y1.06%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-1.82%
Revenue growth 5Y-3.13%
Sales Q2Q%92.39%
Revenue Next Year38.32%
Revenue Next 2Y10.25%
Revenue Next 3Y9.3%
Revenue Next 5Y2.81%
EBIT growth 1Y50.77%
EBIT growth 3YN/A
EBIT growth 5Y-8.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.88%
FCF growth 3Y-8.03%
FCF growth 5Y-21.37%
OCF growth 1Y-34.88%
OCF growth 3Y-8.03%
OCF growth 5Y-21.37%