PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
117.89 USD
+1.31 (+1.12%)
Overall PRU gets a fundamental rating of 3 out of 10. We evaluated PRU against 146 industry peers in the Insurance industry. Both the profitability and financial health of PRU have multiple concerns. 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
- 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.
- Each year in the past 5 years PRU had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.33%, PRU is doing worse than 81.51% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.05%, PRU is doing worse than 65.07% of the companies in the same industry.
- With a Return On Invested Capital value of 0.28%, PRU is not doing good in the industry: 71.23% of the companies in the same industry are doing better.
| 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
- Looking at the Profit Margin, with a value of 4.83%, PRU is doing worse than 67.12% of the companies in the same industry.
- In the last couple of years the Profit Margin of PRU has declined.
- PRU has a Operating Margin of 4.87%. This is in the lower half of the industry: PRU underperforms 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 has a worse Debt to FCF ratio (4.18) than 62.33% of its industry peers.
- A Debt/Equity ratio of 0.67 indicates that PRU is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.67, PRU is not doing good in the industry: 82.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC8.45%
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.
- The Revenue for PRU has decreased by -24.65% in the past year. This is quite bad
- PRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
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.
- PRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.18% yearly.
EPS Next Y13.41%
EPS Next 2Y7.94%
EPS Next 3Y7.46%
EPS Next 5Y0.81%
Revenue Next Year-17.44%
Revenue Next 2Y-7.87%
Revenue Next 3Y-3.83%
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
- Based on the Price/Earnings ratio of 8.37, the valuation of PRU can be described as reasonable.
- Based on the Price/Earnings ratio, PRU is valued a bit cheaper than the industry average as 71.23% of the companies are valued more expensively.
- PRU is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- PRU is valuated cheaply with a Price/Forward Earnings ratio of 7.81.
- 71.23% of the companies in the same industry are more expensive than PRU, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of PRU to the average of the S&P500 Index (24.04), we can say PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.81 |
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.
- PRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 15.7 |
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)0.62
PEG (5Y)4.05
EPS Next 2Y7.94%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- PRU has a Yearly Dividend Yield of 4.55%, which is a nice return.
- PRU's Dividend Yield is rather good when compared to the industry average which is at 2.42. PRU pays more dividend than 82.19% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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 2Y7.94%
EPS Next 3Y7.46%
NYSE:PRU (1/14/2026, 3:03:09 PM)
117.89
+1.31 (+1.12%)
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 Cap41.26B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target120.43 (2.15%)
Short Float %2.36%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)0.59%
PT rev (3m)2.89%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.77 | ||
| P/FCF | 7.82 | ||
| P/OCF | 7.82 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)14.09
EY11.95%
EPS(NY)15.09
Fwd EY12.8%
FCF(TTM)15.07
FCFY12.78%
OCF(TTM)15.07
OCFY12.78%
SpS152.97
BVpS91.7
TBVpS91.7
PEG (NY)0.62
PEG (5Y)4.05
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
WACC8.45%
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-17.44%
Revenue Next 2Y-7.87%
Revenue Next 3Y-3.83%
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 8.37 and the Price/Book (PB) ratio is 1.29.
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%.