PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
108.44 USD
+1.25 (+1.17%)
Overall PRU gets a fundamental rating of 3 out of 10. We evaluated PRU against 147 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 it does not seem to be growing. 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 0.33% is on the low side compared to the rest of the industry. PRU is outperformed by 83.67% of its industry peers.
The Return On Equity of PRU (8.05%) is worse than 67.35% of its industry peers.
PRU has a worse Return On Invested Capital (0.35%) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROIC | 0.35% |
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
The Profit Margin of PRU (4.83%) is worse than 69.39% of its industry peers.
PRU's Profit Margin has declined in the last couple of years.
The Operating Margin of PRU (6.15%) is worse than 73.47% of its industry peers.
In the last couple of years the Operating Margin of PRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | 4.83% | ||
| 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
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
Compared to 1 year ago, PRU has a worse debt to assets ratio.
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.
With a Debt to FCF ratio value of 4.18, PRU is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
PRU has a Debt/Equity ratio of 0.67. This is a neutral value indicating PRU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, PRU is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.04
WACC8.35%
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%.
Measured over the past years, PRU shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
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.
The Revenue is expected to grow by 0.18% on average over the next years.
EPS Next Y10.85%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
EPS Next 5Y0.81%
Revenue Next Year-18.67%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.12%
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
Based on the Price/Earnings ratio of 7.70, the valuation of PRU can be described as very cheap.
PRU's Price/Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 73.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.65, PRU is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.21, the valuation of PRU can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 74.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRU is on the same level as its industry peers.
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 | 7.24 | ||
| EV/EBITDA | 11.76 |
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)0.71
PEG (5Y)3.72
EPS Next 2Y7.76%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.19%, PRU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, PRU pays a better dividend. On top of this PRU pays more dividend than 85.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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.
The dividend of PRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.23%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
NYSE:PRU (11/25/2025, 10:05:01 AM)
108.44
+1.25 (+1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.84%
Inst Owner Change0.53%
Ins Owners0.12%
Ins Owner Change-2.83%
Market Cap38.17B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target119.58 (10.27%)
Short Float %1.93%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP74.23%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)2.16%
PT rev (3m)2.16%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)2.4%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.71 | ||
| P/FCF | 7.24 | ||
| P/OCF | 7.24 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)14.09
EY12.99%
EPS(NY)15.04
Fwd EY13.87%
FCF(TTM)14.98
FCFY13.82%
OCF(TTM)14.98
OCFY13.82%
SpS152.1
BVpS91.18
TBVpS91.18
PEG (NY)0.71
PEG (5Y)3.72
Graham Number170.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROCE | 0.43% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.36% | ||
| ROICexgc | 0.55% | ||
| OM | 6.15% | ||
| 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-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 | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 6.11 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 149.7% | ||
| Profit Quality | 204.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.35%
ROIC/WACC0.04
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 Y10.85%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
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-18.67%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.12%
Revenue Next 5Y0.18%
EBIT growth 1Y-36.64%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
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 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 7.7 and the Price/Book (PB) ratio is 1.19.
Can you provide the financial health for PRU stock?
The financial health rating of PRUDENTIAL FINANCIAL INC (PRU) is 1 / 10.