PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
NYSE:PRU - New York Stock Exchange, Inc. - US7443201022 - Common Stock - Currency: USD
PRU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and financial health of PRU have multiple concerns. 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
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.
Of the past 5 years PRU 4 years had a positive operating cash flow.
1.2 Ratios
PRU has a worse Return On Assets (0.53%) than 72.34% of its industry peers.
PRU's Return On Equity of 13.33% is in line compared to the rest of the industry. PRU outperforms 57.45% of its industry peers.
PRU has a worse Return On Invested Capital (0.55%) than 66.67% 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
PRU has a Profit Margin (5.78%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
With a Operating Margin value of 7.41%, PRU is not doing good in the industry: 60.99% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PRU has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRU is destroying value.
PRU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
Looking at the Debt to Equity ratio, with a value of 0.69, PRU is doing worse than 85.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | N/A |
ROIC/WACC0.07
WACC8.06%
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 11.45%, 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.
EPS 1Y (TTM)11.45%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%14.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.08%
3.2 Future
Based on estimates for the next years, PRU will show a decrease in Earnings Per Share. The EPS will decrease by -1.38% on average per year.
Based on estimates for the next years, PRU will show a decrease in Revenue. The Revenue will decrease by -4.26% on average per year.
EPS Next Y11.03%
EPS Next 2Y8.55%
EPS Next 3Y8.71%
EPS Next 5Y-1.38%
Revenue Next Year-17.06%
Revenue Next 2Y-6.85%
Revenue Next 3Y-1.94%
Revenue Next 5Y-4.26%
3.3 Evolution
The EPS 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 8.59, the valuation of PRU can be described as very reasonable.
PRU's Price/Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 72.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.30. PRU is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.74, the valuation of PRU can be described as very cheap.
76.60% of the companies in the same industry are more expensive than PRU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PRU is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | N/A |
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)0.78
PEG (5Y)4.15
EPS Next 2Y8.55%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, PRU is a good candidate for dividend investing.
PRU's Dividend Yield is rather good when compared to the industry average which is at 3.08. PRU pays more dividend than 86.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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.
DP46.34%
EPS Next 2Y8.55%
EPS Next 3Y8.71%
NYSE:PRU (2/21/2025, 11:44:44 AM)
111.23
+0.1 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.48%
Inst Owner Change3.9%
Ins Owners0.17%
Ins Owner Change4.55%
Market Cap39.44B
Analysts67.62
Price Target130.05 (16.92%)
Short Float %1.73%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend5.09
Dividend Growth(5Y)6.9%
DP46.34%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)-3.34%
PT rev (3m)2.68%
EPS NQ rev (1m)-3.37%
EPS NQ rev (3m)-3.24%
EPS NY rev (1m)-3.76%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.56 | ||
| P/FCF | 5.42 | ||
| P/OCF | 5.42 | ||
| P/B | 1.3 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.95
EY11.64%
EPS(NY)14.38
Fwd EY12.93%
FCF(TTM)20.54
FCFY18.46%
OCF(TTM)20.54
OCFY18.46%
SpS197.89
BVpS85.78
TBVpS85.78
PEG (NY)0.78
PEG (5Y)4.15
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
WACC8.06%
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)11.45%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%14.73%
EPS Next Y11.03%
EPS Next 2Y8.55%
EPS Next 3Y8.71%
EPS Next 5Y-1.38%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.08%
Revenue Next Year-17.06%
Revenue Next 2Y-6.85%
Revenue Next 3Y-1.94%
Revenue Next 5Y-4.26%
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%