PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - NYSE:PRU - US7443201022 - Common Stock
103.59 USD
-0.28 (-0.27%)
103.59 USD
0 (0%)
Overall PRU gets a fundamental rating of 3 out of 10. We evaluated PRU against 146 industry peers in the Insurance industry. PRU has a bad profitability rating. Also its financial health evaluation is rather negative. PRU has a valuation in line with the averages, but on the other hand it scores bad on growth. PRU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PRU had positive earnings in the past year.
In the past year PRU had a positive cash flow from operations.
In multiple years PRU reported negative net income over the last 5 years.
Each year in the past 5 years PRU had a positive operating cash flow.
1.2 Ratios
PRU has a worse Return On Assets (0.21%) than 81.51% of its industry peers.
PRU has a worse Return On Equity (5.27%) than 72.60% of its industry peers.
PRU has a worse Return On Invested Capital (0.22%) than 68.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.27% | ||
| ROIC | 0.22% |
ROA(3y)0.15%
ROA(5y)0.27%
ROE(3y)4.35%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PRU has a worse Profit Margin (2.92%) than 73.29% of its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
Looking at the Operating Margin, with a value of 3.74%, PRU is doing worse than 80.14% of the companies in the same industry.
PRU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 2.92% | ||
| 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRU is destroying value.
Compared to 1 year ago, PRU has less shares outstanding
Compared to 5 years ago, PRU has less shares outstanding
PRU has a worse debt/assets ratio than last year.
2.2 Solvency
PRU has a debt to FCF ratio of 10.46. This is a negative value and a sign of low solvency as PRU would need 10.46 years to pay back of all of its debts.
PRU's Debt to FCF ratio of 10.46 is on the low side compared to the rest of the industry. PRU is outperformed by 69.18% of its industry peers.
PRU has a Debt/Equity ratio of 0.68. This is a neutral value indicating PRU is somewhat dependend on debt financing.
PRU's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. PRU is outperformed by 85.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC8.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PRU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
Measured over the past 5 years, PRU shows a small growth in Earnings Per Share. The EPS has been growing by 2.07% on average per year.
The Revenue has decreased by -9.43% in the past year.
The Revenue has been growing slightly by 0.36% on average over the past years.
EPS 1Y (TTM)6.23%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.6%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-2.42%
3.2 Future
Based on estimates for the next years, PRU will show a small growth in Earnings Per Share. The EPS will grow by 0.81% on average per year.
Based on estimates for the next years, PRU will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y7.75%
EPS Next 2Y7.43%
EPS Next 3Y7.49%
EPS Next 5Y0.81%
Revenue Next Year-19.2%
Revenue Next 2Y-7.81%
Revenue Next 3Y-3.79%
Revenue Next 5Y0.18%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.78, which indicates a rather cheap valuation of PRU.
Based on the Price/Earnings ratio, PRU is valued a bit cheaper than the industry average as 75.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PRU is valued rather cheaply.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 6.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 75.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 6.93 |
4.2 Price Multiples
PRU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PRU is more expensive than 61.64% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 17.18 |
4.3 Compensation for Growth
PRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1
PEG (5Y)3.76
EPS Next 2Y7.43%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
PRU has a Yearly Dividend Yield of 5.05%, which is a nice return.
PRU's Dividend Yield is rather good when compared to the industry average which is at 3.43. PRU pays more dividend than 82.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
5.2 History
The dividend of PRU has a limited annual growth rate of 5.51%.
PRU has been paying a dividend for at least 10 years, so it has a reliable track record.
PRU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
118.44% of the earnings are spent on dividend by PRU. This is not a sustainable payout ratio.
PRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP118.44%
EPS Next 2Y7.43%
EPS Next 3Y7.49%
103.59
-0.28 (-0.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.29%
Inst Owner Change-1.17%
Ins Owners0.12%
Ins Owner Change-0.13%
Market Cap36.46B
Analysts66.67
Price Target117.05 (12.99%)
Short Float %1.69%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP118.44%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.42%
Min EPS beat(2)2.38%
Max EPS beat(2)10.45%
EPS beat(4)2
Avg EPS beat(4)0.53%
Min EPS beat(4)-9.72%
Max EPS beat(4)10.45%
EPS beat(8)3
Avg EPS beat(8)0.61%
EPS beat(12)4
Avg EPS beat(12)-0.71%
EPS beat(16)7
Avg EPS beat(16)3.25%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-6.96%
Max Revenue beat(2)-1.02%
Revenue beat(4)1
Avg Revenue beat(4)2.27%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)29.51%
Revenue beat(8)3
Avg Revenue beat(8)4.39%
Revenue beat(12)5
Avg Revenue beat(12)6.37%
Revenue beat(16)7
Avg Revenue beat(16)8.23%
PT rev (1m)0.29%
PT rev (3m)2.23%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)1.48%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 6.93 | ||
| P/S | 0.66 | ||
| P/FCF | 17.51 | ||
| P/OCF | 17.51 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 17.18 |
EPS(TTM)13.31
EY12.85%
EPS(NY)14.95
Fwd EY14.43%
FCF(TTM)5.92
FCFY5.71%
OCF(TTM)5.92
OCFY5.71%
SpS156.68
BVpS86.88
TBVpS86.88
PEG (NY)1
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.27% | ||
| ROCE | 0.27% | ||
| ROIC | 0.22% | ||
| ROICexc | 0.23% | ||
| ROICexgc | 0.35% | ||
| OM | 3.74% | ||
| PM (TTM) | 2.92% | ||
| GM | N/A | ||
| FCFM | 3.78% |
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-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 10.46 | ||
| Debt/EBITDA | 8.73 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.9% | ||
| Profit Quality | 129.3% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.37%
ROIC/WACC0.03
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)6.23%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.6%
EPS Next Y7.75%
EPS Next 2Y7.43%
EPS Next 3Y7.49%
EPS Next 5Y0.81%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-2.42%
Revenue Next Year-19.2%
Revenue Next 2Y-7.81%
Revenue Next 3Y-3.79%
Revenue Next 5Y0.18%
EBIT growth 1Y-42.44%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-49.83%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y-49.83%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%