PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
118.08 USD
-0.64 (-0.54%)
118.08 USD
0 (0%)
Taking everything into account, PRU scores 3 out of 10 in our fundamental rating. 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 valued correctly, but it does not seem to be growing. Finally 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
The Return On Assets of PRU (0.33%) is worse than 81.76% of its industry peers.
PRU's Return On Equity of 8.05% is on the low side compared to the rest of the industry. PRU is outperformed by 64.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.28%, PRU is doing worse than 71.62% of the companies in the same industry.
| 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
PRU has a Profit Margin of 4.83%. This is in the lower half of the industry: PRU underperforms 67.57% of its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
PRU's Operating Margin of 4.87% is on the low side compared to the rest of the industry. PRU is outperformed by 79.05% 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.
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
PRU has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PRU is 4.18, which is a neutral value as it means it would take PRU, 4.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, PRU is doing worse than 61.49% of the companies in the same industry.
PRU has a Debt/Equity ratio of 0.67. This is a neutral value indicating PRU is somewhat dependend on debt financing.
The Debt to Equity ratio of PRU (0.67) is worse than 83.11% of its industry peers.
| 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.
Measured over the past 5 years, PRU shows a small growth in Earnings Per Share. The EPS has been growing by 2.07% on average per year.
PRU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.65%.
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
PRU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.81% yearly.
The Revenue is expected to grow by 0.18% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.38 indicates a reasonable valuation of PRU.
Based on the Price/Earnings ratio, PRU is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
PRU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 7.83, the valuation of PRU can be described as very cheap.
PRU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 72.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. PRU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRU is valued a bit more expensive than 62.84% 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 | 7.84 | ||
| EV/EBITDA | 15.89 |
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)0.63
PEG (5Y)4.05
EPS Next 2Y7.94%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, PRU is a good candidate for dividend investing.
PRU's Dividend Yield is rather good when compared to the industry average which is at 2.42. PRU pays more dividend than 82.43% of the companies in the same industry.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
PRU pays out 74.23% of its income as dividend. 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%
118.08
-0.64 (-0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.95%
Inst Owner Change-0.12%
Ins Owners0.1%
Ins Owner Change-2.96%
Market Cap41.33B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target120.43 (1.99%)
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 | 8.38 | ||
| Fwd PE | 7.83 | ||
| P/S | 0.77 | ||
| P/FCF | 7.84 | ||
| P/OCF | 7.84 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 15.89 |
EPS(TTM)14.09
EY11.93%
EPS(NY)15.09
Fwd EY12.78%
FCF(TTM)15.07
FCFY12.76%
OCF(TTM)15.07
OCFY12.76%
SpS152.97
BVpS91.7
TBVpS91.7
PEG (NY)0.63
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 8.38 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%.