PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - NYSE:PRU - US7443201022 - Common Stock
107.16 USD
-0.69 (-0.64%)
107.16 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PRU. PRU was compared to 146 industry peers in the Insurance industry. PRU has a bad profitability rating. Also its financial health evaluation is rather negative. PRU is cheap, but on the other hand it scores bad on growth. 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.
The reported net income has been mixed in the past 5 years: PRU reported negative net income in multiple 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 78.08% of its industry peers.
The Return On Equity of PRU (8.05%) is worse than 64.38% of its industry peers.
PRU's Return On Invested Capital of 0.35% is on the low side compared to the rest of the industry. PRU is outperformed by 71.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROIC | 0.35% |
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 Profit Margin of 4.83%. This is in the lower half of the industry: PRU underperforms 67.12% of its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
The Operating Margin of PRU (6.15%) is worse than 71.92% of its industry peers.
In the last couple of years the Operating Margin of PRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | 4.83% | ||
| 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
PRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRU has been reduced compared to 1 year ago.
Compared to 5 years ago, PRU has less shares outstanding
The debt/assets ratio for PRU is higher compared to a year ago.
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 has a Debt to FCF ratio of 4.18. This is comparable to the rest of the industry: PRU outperforms 42.47% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that 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 84.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.04
WACC8.4%
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 12.09% over the past year.
PRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
Looking at the last year, PRU shows a very negative growth in Revenue. The Revenue has decreased by -24.65% in the last year.
The Revenue has been growing slightly by 0.36% on average over the past years.
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
The Earnings Per Share is expected to grow by 0.81% on average over the next years.
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 Y10.85%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
EPS Next 5Y0.81%
Revenue Next Year-18.67%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.12%
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.
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
Based on the Price/Earnings ratio of 7.61, the valuation of PRU can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 73.97% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PRU to the average of the S&P500 Index (25.89), we can say PRU is valued rather cheaply.
The Price/Forward Earnings ratio is 7.13, which indicates a rather cheap valuation of PRU.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than 76.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRU to the average of the S&P500 Index (34.59), we can say PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.61 | ||
| Fwd PE | 7.13 |
4.2 Price Multiples
PRU's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 63.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.15 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
PRU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.7
PEG (5Y)3.68
EPS Next 2Y7.76%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
PRU has a Yearly Dividend Yield of 5.01%, which is a nice return.
Compared to an average industry Dividend Yield of 3.55, PRU pays a better dividend. On top of this PRU pays more dividend than 84.25% of the companies listed in the same industry.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
5.2 History
The dividend of PRU has a limited annual growth rate of 5.51%.
PRU has paid a dividend for at least 10 years, which is 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
74.23% 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.
DP74.23%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
107.16
-0.69 (-0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.84%
Inst Owner Change-0.5%
Ins Owners0.12%
Ins Owner Change-0.13%
Market Cap37.72B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target119.11 (11.15%)
Short Float %1.64%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP74.23%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)1.76%
PT rev (3m)2.06%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)2.97%
EPS NY rev (3m)4.4%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.61 | ||
| Fwd PE | 7.13 | ||
| P/S | 0.7 | ||
| P/FCF | 7.15 | ||
| P/OCF | 7.15 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)14.09
EY13.15%
EPS(NY)15.04
Fwd EY14.03%
FCF(TTM)14.98
FCFY13.98%
OCF(TTM)14.98
OCFY13.98%
SpS152.1
BVpS91.18
TBVpS91.18
PEG (NY)0.7
PEG (5Y)3.68
Graham Number170.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROCE | 0.43% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.36% | ||
| ROICexgc | 0.55% | ||
| OM | 6.15% | ||
| 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-28.02%
ROICexgc 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 | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 6.11 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 149.7% | ||
| Profit Quality | 204.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.4%
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)12.09%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%22.41%
EPS Next Y10.85%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
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-18.67%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.12%
Revenue Next 5Y0.18%
EBIT growth 1Y-36.64%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
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 for PRU stock?
ChartMill assigns a valuation rating of 7 / 10 to PRUDENTIAL FINANCIAL INC (PRU). This can be considered as Undervalued.
Can you provide the profitability details for PRUDENTIAL FINANCIAL INC?
PRUDENTIAL FINANCIAL INC (PRU) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for PRU stock?
The Price/Earnings (PE) ratio for PRUDENTIAL FINANCIAL INC (PRU) is 7.61 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for PRU stock?
The financial health rating of PRUDENTIAL FINANCIAL INC (PRU) is 2 / 10.