PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
111.69 USD
-4.74 (-4.07%)
111.885 USD
+0.2 (+0.17%)
Overall PRU gets a fundamental rating of 3 out of 10. We evaluated PRU against 148 industry peers in the Insurance industry. PRU may be in some trouble as it scores bad on both profitability and health. PRU is valued correctly, but it does not seem to be growing. Finally PRU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year PRU was profitable.
- 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.
- In the past 5 years PRU always reported a positive cash flow from operatings.
1.2 Ratios
- PRU's Return On Assets of 0.33% is on the low side compared to the rest of the industry. PRU is outperformed by 81.51% of its industry peers.
- With a Return On Equity value of 8.05%, PRU is not doing good in the industry: 65.07% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 0.28%, PRU is doing worse than 71.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROIC | 0.28% |
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
- With a Profit Margin value of 4.83%, PRU is not doing good in the industry: 67.12% of the companies in the same industry are doing better.
- PRU's Profit Margin has declined in the last couple of years.
- The Operating Margin of PRU (4.87%) is worse than 78.77% of its industry peers.
- PRU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.87% | ||
| PM (TTM) | 4.83% | ||
| GM | N/A |
OM growth 3Y-39.41%
OM growth 5Y-14.76%
PM growth 3Y-30.9%
PM growth 5Y-8.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRU is destroying value.
- PRU has less shares outstanding than it did 1 year ago.
- 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 4.18. This is a neutral value as PRU would need 4.18 years to pay back of all of its debts.
- PRU's Debt to FCF ratio of 4.18 is on the low side compared to the rest of the industry. PRU is outperformed by 62.33% of its industry peers.
- PRU has a Debt/Equity ratio of 0.67. This is a neutral value indicating PRU is somewhat dependend on debt financing.
- PRU's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. PRU is outperformed by 82.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC8.47%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- PRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.09%, which is quite good.
- The Earnings Per Share has been growing slightly by 2.07% on average over the past years.
- Looking at the last year, PRU shows a very negative growth in Revenue. The Revenue has decreased by -24.65% in the last year.
- Measured over the past years, PRU shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
EPS 1Y (TTM)12.09%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%22.41%
Revenue 1Y (TTM)-24.65%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-16.64%
3.2 Future
- PRU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.81% yearly.
- 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 Y13.41%
EPS Next 2Y7.94%
EPS Next 3Y7.46%
EPS Next 5Y0.81%
Revenue Next Year-17.12%
Revenue Next 2Y-8.46%
Revenue Next 3Y-4.39%
Revenue Next 5Y0.18%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.93, which indicates a rather cheap valuation of PRU.
- 71.92% of the companies in the same industry are more expensive than PRU, based on the Price/Earnings ratio.
- PRU is valuated cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- PRU is valuated cheaply with a Price/Forward Earnings ratio of 7.40.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 71.92% of the companies listed in the same industry.
- PRU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
- 63.01% of the companies in the same industry are cheaper than PRU, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 15.1 |
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)0.59
PEG (5Y)3.83
EPS Next 2Y7.94%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- PRU has a Yearly Dividend Yield of 4.64%, which is a nice return.
- PRU's Dividend Yield is rather good when compared to the industry average which is at 2.53. PRU pays more dividend than 82.19% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.87, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
- PRU pays out 74.23% of its income as dividend. This is not a sustainable payout ratio.
- PRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.23%
EPS Next 2Y7.94%
EPS Next 3Y7.46%
111.69
-4.74 (-4.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-03 2026-02-03/amc
Inst Owners61.95%
Inst Owner Change-0.12%
Ins Owners0.1%
Ins Owner Change-2.96%
Market Cap39.09B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target122.71 (9.87%)
Short Float %2.36%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP74.23%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.29%
Min EPS beat(2)10.45%
Max EPS beat(2)14.14%
EPS beat(4)3
Avg EPS beat(4)4.31%
Min EPS beat(4)-9.72%
Max EPS beat(4)14.14%
EPS beat(8)3
Avg EPS beat(8)1.28%
EPS beat(12)4
Avg EPS beat(12)0.08%
EPS beat(16)7
Avg EPS beat(16)1.84%
Revenue beat(2)1
Avg Revenue beat(2)6.36%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)13.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)13.74%
Revenue beat(8)4
Avg Revenue beat(8)8.94%
Revenue beat(12)5
Avg Revenue beat(12)4.48%
Revenue beat(16)7
Avg Revenue beat(16)5.29%
PT rev (1m)2.49%
PT rev (3m)4.84%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.73 | ||
| P/FCF | 7.41 | ||
| P/OCF | 7.41 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)14.09
EY12.62%
EPS(NY)15.09
Fwd EY13.51%
FCF(TTM)15.07
FCFY13.49%
OCF(TTM)15.07
OCFY13.49%
SpS152.97
BVpS91.7
TBVpS91.7
PEG (NY)0.59
PEG (5Y)3.83
Graham Number170.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROCE | 0.34% | ||
| ROIC | 0.28% | ||
| ROICexc | 0.28% | ||
| ROICexgc | 0.43% | ||
| OM | 4.87% | ||
| PM (TTM) | 4.83% | ||
| GM | N/A | ||
| FCFM | 9.85% |
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
ROICexgc growth 3Y-34%
ROICexgc growth 5Y-12.49%
ROICexc growth 3Y-35.91%
ROICexc growth 5Y-11.25%
OM growth 3Y-39.41%
OM growth 5Y-14.76%
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 | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 7.6 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 186.03% | ||
| Profit Quality | 204.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.47%
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)12.09%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%22.41%
EPS Next Y13.41%
EPS Next 2Y7.94%
EPS Next 3Y7.46%
EPS Next 5Y0.81%
Revenue 1Y (TTM)-24.65%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-16.64%
Revenue Next Year-17.12%
Revenue Next 2Y-8.46%
Revenue Next 3Y-4.39%
Revenue Next 5Y0.18%
EBIT growth 1Y-49.87%
EBIT growth 3Y-40.75%
EBIT growth 5Y-14.45%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.33%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y94.33%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%
PRUDENTIAL FINANCIAL INC / PRU FAQ
What is the fundamental rating for PRU stock?
ChartMill assigns a fundamental rating of 3 / 10 to PRU.
What is the valuation status of PRUDENTIAL FINANCIAL INC (PRU) stock?
ChartMill assigns a valuation rating of 6 / 10 to PRUDENTIAL FINANCIAL INC (PRU). This can be considered as Fairly Valued.
Can you provide the profitability details for PRUDENTIAL FINANCIAL INC?
PRUDENTIAL FINANCIAL INC (PRU) has a profitability rating of 2 / 10.
What is the valuation of PRUDENTIAL FINANCIAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PRUDENTIAL FINANCIAL INC (PRU) is 7.93 and the Price/Book (PB) ratio is 1.22.
How sustainable is the dividend of PRUDENTIAL FINANCIAL INC (PRU) stock?
The dividend rating of PRUDENTIAL FINANCIAL INC (PRU) is 7 / 10 and the dividend payout ratio is 74.23%.