PRUDENTIAL FINANCIAL INC (PRU)
US7443201022 - Common Stock
We assign a fundamental rating of 4 out of 10 to PRU. PRU was compared to 144 industry peers in the Insurance industry. Both the profitability and financial health of PRU have multiple concerns. PRU is not valued too expensively and it also shows a decent growth rate. Finally PRU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PRU was profitable.
PRU had a positive operating cash flow in the past year.
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
PRU has a worse Return On Assets (0.53%) than 73.24% of its industry peers.
PRU has a Return On Equity (13.33%) which is in line with its industry peers.
PRU has a Return On Invested Capital of 0.55%. This is in the lower half of the industry: PRU underperforms 65.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 13.33% | ||
| ROIC | 0.55% |
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
With a Profit Margin value of 5.78%, PRU perfoms like the industry average, outperforming 40.14% 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 (7.41%) which is in line with its industry peers.
PRU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.41% | ||
| PM (TTM) | 5.78% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRU 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 has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of PRU is 2.95, which is a good value as it means it would take PRU, 2.95 years of fcf income to pay off all of its debts.
PRU has a Debt to FCF ratio (2.95) which is in line with its industry peers.
A Debt/Equity ratio of 0.69 indicates that PRU is somewhat dependend on debt financing.
PRU has a worse Debt to Equity ratio (0.69) than 85.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | N/A |
ROIC/WACC0.07
WACC8.25%
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 9.69% over the past year.
PRU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.10% yearly.
Looking at the last year, PRU shows a small growth in Revenue. The Revenue has grown by 1.30% in the last year.
The Revenue has been decreasing by -3.13% on average over the past years.
EPS 1Y (TTM)9.69%
EPS 3Y4.07%
EPS 5Y-0.1%
EPS Q2Q%1.16%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-1.82%
Revenue growth 5Y-3.13%
Sales Q2Q%92.39%
3.2 Future
The Earnings Per Share is expected to grow by 1.06% 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 2.81% yearly.
EPS Next Y16.21%
EPS Next 2Y13.16%
EPS Next 3Y10.82%
EPS Next 5Y1.06%
Revenue Next Year38.32%
Revenue Next 2Y10.25%
Revenue Next 3Y9.3%
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 9.36.
PRU's Price/Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 68.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, PRU is valued rather cheaply.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 7.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 72.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.53. PRU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.9 |
4.2 Price Multiples
67.61% of the companies in the same industry are more expensive than PRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| 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)0.58
PEG (5Y)N/A
EPS Next 2Y13.16%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, PRU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.13, PRU pays a better dividend. On top of this PRU pays more dividend than 83.10% 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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 Years16
Div Non Decr Years16
5.3 Sustainability
46.34% of the earnings are spent on dividend by PRU. This is a bit on the high side, but may be sustainable.
PRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.34%
EPS Next 2Y13.16%
EPS Next 3Y10.82%
PRUDENTIAL FINANCIAL INC
NYSE:PRU (1/14/2025, 8:04:00 PM)
After market: 117.61 0 (0%)117.61
+1.32 (+1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.48%
Inst Owner Change-0.29%
Ins Owners0.17%
Ins Owner Change-0.31%
Market Cap41.99B
Analysts69
Price Target134.55 (14.4%)
Short Float %1.68%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Dividend Growth(5Y)6.9%
DP46.34%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.85%
Min EPS beat(2)-2.73%
Max EPS beat(2)-0.98%
EPS beat(4)0
Avg EPS beat(4)-1.75%
Min EPS beat(4)-2.73%
Max EPS beat(4)-0.98%
EPS beat(8)1
Avg EPS beat(8)-2.04%
EPS beat(12)4
Avg EPS beat(12)1.01%
EPS beat(16)8
Avg EPS beat(16)8.1%
Revenue beat(2)2
Avg Revenue beat(2)15.4%
Min Revenue beat(2)1.3%
Max Revenue beat(2)29.51%
Revenue beat(4)3
Avg Revenue beat(4)19.56%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)48.21%
Revenue beat(8)4
Avg Revenue beat(8)8.36%
Revenue beat(12)7
Avg Revenue beat(12)10.01%
Revenue beat(16)11
Avg Revenue beat(16)13.67%
PT rev (1m)0.21%
PT rev (3m)9.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)13.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.9 | ||
| P/S | 0.6 | ||
| P/FCF | 5.77 | ||
| P/OCF | 5.77 | ||
| P/B | 1.38 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.57
EY10.69%
EPS(NY)14.88
Fwd EY12.65%
FCF(TTM)20.4
FCFY17.35%
OCF(TTM)20.4
OCFY17.35%
SpS196.56
BVpS85.2
TBVpS85.2
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 13.33% | ||
| ROCE | 0.69% | ||
| ROIC | 0.55% | ||
| ROICexc | 0.56% | ||
| ROICexgc | 0.85% | ||
| OM | 7.41% | ||
| PM (TTM) | 5.78% | ||
| GM | N/A | ||
| FCFM | 10.38% |
ROA(3y)0.34%
ROA(5y)0.29%
ROE(3y)5.83%
ROE(5y)4.69%
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
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.51%
ROICexc growth 3YN/A
ROICexc growth 5Y-6.52%
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
F-Score8
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 179.61% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.25%
ROIC/WACC0.07
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)9.69%
EPS 3Y4.07%
EPS 5Y-0.1%
EPS Q2Q%1.16%
EPS Next Y16.21%
EPS Next 2Y13.16%
EPS Next 3Y10.82%
EPS Next 5Y1.06%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-1.82%
Revenue growth 5Y-3.13%
Sales Q2Q%92.39%
Revenue Next Year38.32%
Revenue Next 2Y10.25%
Revenue Next 3Y9.3%
Revenue Next 5Y2.81%
EBIT growth 1Y50.77%
EBIT growth 3YN/A
EBIT growth 5Y-8.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.88%
FCF growth 3Y-8.03%
FCF growth 5Y-21.37%
OCF growth 1Y-34.88%
OCF growth 3Y-8.03%
OCF growth 5Y-21.37%