PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - NYSE:PRU - US7443201022 - Common Stock
104 USD
+0.91 (+0.88%)
103.967 USD
-0.03 (-0.03%)
Taking everything into account, PRU scores 3 out of 10 in our fundamental rating. PRU was compared to 147 industry peers in the Insurance industry. PRU has a bad profitability rating. Also its financial health evaluation is rather negative. PRU has a correct valuation and a medium growth rate. 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.
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 0.21% is on the low side compared to the rest of the industry. PRU is outperformed by 83.67% of its industry peers.
PRU's Return On Equity of 5.27% is on the low side compared to the rest of the industry. PRU is outperformed by 72.11% of its industry peers.
With a Return On Invested Capital value of 0.22%, PRU is not doing good in the industry: 70.07% of the companies in the same industry are doing better.
| 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's Profit Margin of 2.92% is on the low side compared to the rest of the industry. PRU is outperformed by 74.15% of its industry peers.
PRU's Profit Margin has declined in the last couple of years.
PRU has a Operating Margin of 3.74%. This is amonst the worse of the industry: PRU underperforms 80.95% of its industry peers.
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
PRU 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, PRU has less shares outstanding
The number of shares outstanding for PRU has been reduced compared to 5 years ago.
The debt/assets ratio for PRU is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 10.46, PRU is doing worse than 67.35% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that PRU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, PRU is doing worse than 85.03% of the companies in the same industry.
| 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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.09%, which is quite good.
PRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
The Revenue has grown by 22.85% in the past year. This is a very strong growth!
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)22.85%
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 Y8.25%
EPS Next 2Y7.4%
EPS Next 3Y7.25%
EPS Next 5Y0.81%
Revenue Next Year-19.41%
Revenue Next 2Y-8.04%
Revenue Next 3Y-3.87%
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
With a Price/Earnings ratio of 7.38, 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 74.15% of the companies listed in the same industry.
PRU is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 6.96.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than the industry average as 76.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PRU to the average of the S&P500 Index (22.52), we can say PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRU is valued a bit more expensive than 64.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.57 | ||
| EV/EBITDA | 17.07 |
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)0.89
PEG (5Y)3.57
EPS Next 2Y7.4%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
PRU has a Yearly Dividend Yield of 5.24%, which is a nice return.
PRU's Dividend Yield is rather good when compared to the industry average which is at 3.34. PRU pays more dividend than 86.39% of the companies in the same industry.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
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
PRU pays out 118.44% of its income as dividend. 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.
DP118.44%
EPS Next 2Y7.4%
EPS Next 3Y7.25%
104
+0.91 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.84%
Inst Owner Change0.11%
Ins Owners0.12%
Ins Owner Change-0.13%
Market Cap36.61B
Revenue(TTM)66.31B
Net Income(TTM)1.61B
Analysts66.67
Price Target119.11 (14.53%)
Short Float %1.64%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
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%
PT rev (3m)0.36%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)0.56%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)2.54%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 6.96 | ||
| P/S | 0.66 | ||
| P/FCF | 17.57 | ||
| P/OCF | 17.57 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)14.09
EY13.55%
EPS(NY)14.94
Fwd EY14.36%
FCF(TTM)5.92
FCFY5.69%
OCF(TTM)5.92
OCFY5.69%
SpS156.68
BVpS86.88
TBVpS86.88
PEG (NY)0.89
PEG (5Y)3.57
Graham Number165.96
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
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 | 0.68 | ||
| 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)12.09%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%22.41%
EPS Next Y8.25%
EPS Next 2Y7.4%
EPS Next 3Y7.25%
EPS Next 5Y0.81%
Revenue 1Y (TTM)22.85%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-16.64%
Revenue Next Year-19.41%
Revenue Next 2Y-8.04%
Revenue Next 3Y-3.87%
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%
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 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.
Can you provide the PE and PB ratios for PRU stock?
The Price/Earnings (PE) ratio for PRUDENTIAL FINANCIAL INC (PRU) is 7.38 and the Price/Book (PB) ratio is 1.2.
Can you provide the financial health for PRU stock?
The financial health rating of PRUDENTIAL FINANCIAL INC (PRU) is 1 / 10.