PRUDENTIAL FINANCIAL INC (PRU)
US7443201022 - Common Stock
Overall PRU gets a fundamental rating of 4 out of 10. We evaluated PRU against 141 industry peers in the Insurance industry. PRU may be in some trouble as it scores bad on both profitability and health. 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.
PRU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PRU reported negative net income in multiple years.
Each year in the past 5 years PRU had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.39%, PRU is not doing good in the industry: 72.86% of the companies in the same industry are doing better.
PRU has a Return On Equity (10.01%) which is in line with its industry peers.
With a Return On Invested Capital value of 0.40%, PRU is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 10.01% | ||
| ROIC | 0.4% |
ROA(3y)0.34%
ROA(5y)0.29%
ROE(3y)5.83%
ROE(5y)4.69%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PRU (4.67%) is worse than 60.00% of its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
The Operating Margin of PRU (5.97%) is worse than 61.43% of its industry peers.
In the last couple of years the Operating Margin of PRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.97% | ||
| PM (TTM) | 4.67% | ||
| 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
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.
The number of shares outstanding for PRU has been reduced compared to 5 years ago.
The debt/assets ratio for PRU has been reduced compared to a year ago.
2.2 Solvency
PRU has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as PRU would need 2.34 years to pay back of all of its debts.
PRU has a Debt to FCF ratio (2.34) which is in line with its industry peers.
A Debt/Equity ratio of 0.75 indicates that PRU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, PRU is doing worse than 80.00% of the companies in the same industry.
Although PRU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC8.06%
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 9.69%, which is quite good.
PRU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.10% yearly.
PRU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.11%.
PRU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.13% yearly.
EPS 1Y (TTM)9.69%
EPS 3Y4.07%
EPS 5Y-0.1%
EPS Q2Q%1.16%
Revenue 1Y (TTM)-10.11%
Revenue growth 3Y-1.82%
Revenue growth 5Y-3.13%
Sales Q2Q%92.39%
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 3.27% on average per year.
PRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.81% yearly.
EPS Next Y16.04%
EPS Next 2Y13.02%
EPS Next 3Y10.75%
EPS Next 5Y3.27%
Revenue Next Year37.73%
Revenue Next 2Y11.45%
Revenue Next 3Y9.29%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PRU is valuated reasonably with a Price/Earnings ratio of 10.24.
Compared to the rest of the industry, the Price/Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 67.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.56. PRU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.67, the valuation of PRU can be described as reasonable.
PRU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.20, PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PRU is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.1 | ||
| EV/EBITDA | N/A |
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)0.64
PEG (5Y)N/A
EPS Next 2Y13.02%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
PRU has a Yearly Dividend Yield of 4.12%, which is a nice return.
Compared to an average industry Dividend Yield of 4.06, PRU pays a better dividend. On top of this PRU pays more dividend than 81.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
On average, the dividend of PRU grows each year by 6.90%, which is quite nice.
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)6.9%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
66.60% of the earnings are spent on dividend by PRU. This is not a sustainable payout ratio.
The dividend of PRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.6%
EPS Next 2Y13.02%
EPS Next 3Y10.75%
PRUDENTIAL FINANCIAL INC
NYSE:PRU (11/25/2024, 7:04:20 PM)
After market: 128.71 0 (0%)128.71
+0.82 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 10.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.97% | ||
| PM (TTM) | 4.67% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.69%
EPS 3Y4.07%
EPS 5Y
EPS Q2Q%
EPS Next Y16.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.11%
Revenue growth 3Y-1.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y