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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 - Currency: USD

22.95  +0.18 (+0.79%)

Fundamental Rating

3

PRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. PRS has a bad profitability rating. Also its financial health evaluation is rather negative. PRS has a bad growth rate and is valued cheaply.


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.
In multiple years PRS reported negative net income over the last 5 years.
In the past 5 years PRS always reported a positive cash flow from operatings.
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 2024 0 5B 10B 15B 20B

1.2 Ratios

With a Return On Assets value of 0.37%, PRS is not doing good in the industry: 75.52% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 9.67%, PRS is in line with its industry, outperforming 48.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.36%, PRS is doing worse than 65.73% of the companies in the same industry.
Industry RankSector Rank
ROA 0.37%
ROE 9.67%
ROIC 0.36%
ROA(3y)0.15%
ROA(5y)0.27%
ROE(3y)4.35%
ROE(5y)5.32%
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 2024 0 5 -5 10

1.3 Margins

PRS has a worse Profit Margin (4.05%) than 69.93% of its industry peers.
PRS's Profit Margin has declined in the last couple of years.
PRS has a worse Operating Margin (4.83%) than 76.22% of its industry peers.
PRS's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.83%
PM (TTM) 4.05%
GM N/A
OM growth 3Y-33.92%
OM growth 5Y-10.21%
PM growth 3Y-30.9%
PM growth 5Y-8.56%
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 2024 0 5 10 15

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2

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
Compared to 5 years ago, PRS has less shares outstanding
The debt/assets ratio for PRS is higher compared to a year ago.
PRS Yearly Shares OutstandingPRS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 200B 400B 600B 800B

2.2 Solvency

PRS has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as PRS would need 2.54 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.54, PRS perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that PRS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, PRS is not doing good in the industry: 83.22% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 2.54
Altman-Z N/A
ROIC/WACC0.04
WACC9.6%
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 2024 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 2024 5B 10B 15B 20B

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2

3. Growth

3.1 Past

PRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.45%, which is quite good.
The Earnings Per Share has been growing slightly by 2.07% on average over the past years.
The Revenue has decreased by -6.36% in the past year.
PRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)11.45%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%14.73%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-0.08%

3.2 Future

PRS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.51% yearly.
The Revenue is expected to decrease by -1.53% on average over the next years.
EPS Next Y11.05%
EPS Next 2Y8.73%
EPS Next 3Y9%
EPS Next 5Y-0.51%
Revenue Next Year-15.32%
Revenue Next 2Y-6.51%
Revenue Next 3Y-2.16%
Revenue Next 5Y-1.53%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 2029 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 2029 5 10 15

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 1.77, which indicates a rather cheap valuation of PRS.
Compared to the rest of the industry, the Price/Earnings ratio of PRS indicates a rather cheap valuation: PRS is cheaper than 88.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, PRS is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.60, the valuation of PRS can be described as very cheap.
Based on the Price/Forward Earnings ratio, PRS is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
PRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1.77
Fwd PE 1.6
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

Based on the Enterprise Value to EBITDA ratio, PRS is valued cheaply inside the industry as 85.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRS is valued cheaply inside the industry as 91.61% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 0.96
EV/EBITDA 2.97
PRS Per share dataPRS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

PRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.16
PEG (5Y)0.86
EPS Next 2Y8.73%
EPS Next 3Y9%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.43%, PRS is a good candidate for dividend investing.
PRS's Dividend Yield is rather good when compared to the industry average which is at 3.28. PRS pays more dividend than 88.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, PRS pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.43%

5.2 History

The dividend of PRS has a limited annual growth rate of 5.51%.
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)5.51%
Div Incr Years0
Div Non Decr Years3
PRS Yearly Dividends per sharePRS Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

70.19% of the earnings are spent on dividend by PRS. This is not a sustainable payout ratio.
PRS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP70.19%
EPS Next 2Y8.73%
EPS Next 3Y9%
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 2024 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 (4/17/2025, 8:04:00 PM)

22.95

+0.18 (+0.79%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-04 2025-02-04/amc
Earnings (Next)04-30 2025-04-30/amc
Inst Owners61.12%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap8.13B
Analysts67.62
Price Target26.59 (15.86%)
Short Float %0.01%
Short Ratio0.45
Dividend
Industry RankSector Rank
Dividend Yield 5.43%
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP70.19%
Div Incr Years0
Div Non Decr Years3
Ex-Date05-01 2025-05-01 (0.3515625)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.35%
Min EPS beat(2)-9.72%
Max EPS beat(2)-0.98%
EPS beat(4)0
Avg EPS beat(4)-3.69%
Min EPS beat(4)-9.72%
Max EPS beat(4)-0.98%
EPS beat(8)1
Avg EPS beat(8)-2.67%
EPS beat(12)3
Avg EPS beat(12)-2.6%
EPS beat(16)7
Avg EPS beat(16)6.7%
Revenue beat(2)1
Avg Revenue beat(2)8.54%
Min Revenue beat(2)-12.43%
Max Revenue beat(2)29.51%
Revenue beat(4)3
Avg Revenue beat(4)16.65%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)48.21%
Revenue beat(8)4
Avg Revenue beat(8)7.17%
Revenue beat(12)6
Avg Revenue beat(12)7.64%
Revenue beat(16)10
Avg Revenue beat(16)12.53%
PT rev (1m)0.72%
PT rev (3m)-2.27%
EPS NQ rev (1m)-2.27%
EPS NQ rev (3m)-6.57%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)-2.53%
Revenue NQ rev (3m)-5.53%
Revenue NY rev (1m)-1.72%
Revenue NY rev (3m)-4.76%
Valuation
Industry RankSector Rank
PE 1.77
Fwd PE 1.6
P/S 0.12
P/FCF 0.96
P/OCF 0.96
P/B 0.29
P/tB 0.29
EV/EBITDA 2.97
EPS(TTM)12.95
EY56.43%
EPS(NY)14.38
Fwd EY62.66%
FCF(TTM)23.99
FCFY104.52%
OCF(TTM)23.99
OCFY104.52%
SpS187.64
BVpS78.64
TBVpS78.64
PEG (NY)0.16
PEG (5Y)0.86
Profitability
Industry RankSector Rank
ROA 0.37%
ROE 9.67%
ROCE 0.44%
ROIC 0.36%
ROICexc 0.37%
ROICexgc 0.56%
OM 4.83%
PM (TTM) 4.05%
GM N/A
FCFM 12.78%
ROA(3y)0.15%
ROA(5y)0.27%
ROE(3y)4.35%
ROE(5y)5.32%
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 3Y-28.02%
ROICexcg growth 5Y-7.81%
ROICexc growth 3Y-30.1%
ROICexc growth 5Y-6.51%
OM growth 3Y-33.92%
OM growth 5Y-10.21%
PM growth 3Y-30.9%
PM growth 5Y-8.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 2.54
Debt/EBITDA 5.88
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.61
Cash Conversion 236.69%
Profit Quality 315.59%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC9.6%
ROIC/WACC0.04
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)11.45%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%14.73%
EPS Next Y11.05%
EPS Next 2Y8.73%
EPS Next 3Y9%
EPS Next 5Y-0.51%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-0.08%
Revenue Next Year-15.32%
Revenue Next 2Y-6.51%
Revenue Next 3Y-2.16%
Revenue Next 5Y-1.53%
EBIT growth 1Y-37.03%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.6%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y30.6%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%