PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
115.68 USD
-1.4 (-1.2%)
115.68 USD
0 (0%)
Taking everything into account, PRU scores 3 out of 10 in our fundamental rating. PRU was compared to 147 industry peers in the Insurance industry. PRU may be in some trouble as it scores bad on both profitability and health. PRU has a valuation in line with the averages, 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.
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 82.99% of the companies in the same industry.
PRU has a Return On Equity of 8.05%. This is in the lower half of the industry: PRU underperforms 65.31% of its industry peers.
The Return On Invested Capital of PRU (0.28%) is worse than 72.79% of its industry peers.
| 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 68.71% of the companies in the same industry.
PRU's Profit Margin has declined in the last couple of years.
The Operating Margin of PRU (4.87%) is worse than 80.27% of its industry peers.
In the last couple of years the Operating Margin of PRU has declined.
| 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
PRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PRU has less shares outstanding than it did 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.
PRU's Debt to FCF ratio of 4.18 is on the low side compared to the rest of the industry. PRU is outperformed by 61.22% of its industry peers.
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 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC8.42%
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
The Earnings Per Share is expected to grow by 0.81% on average over the next years.
Based on estimates for the next years, PRU will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y13.45%
EPS Next 2Y7.95%
EPS Next 3Y7.47%
EPS Next 5Y0.81%
Revenue Next Year-17.41%
Revenue Next 2Y-8.39%
Revenue Next 3Y-4.35%
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.
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
With a Price/Earnings ratio of 8.21, the valuation of PRU can be described as very reasonable.
Based on the Price/Earnings ratio, PRU is valued a bit cheaper than the industry average as 74.15% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PRU to the average of the S&P500 Index (26.22), we can say PRU is valued rather cheaply.
The Price/Forward Earnings ratio is 7.67, which indicates a rather cheap valuation of PRU.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than 73.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.58, PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRU is valued a bit more expensive than 63.27% of the companies in the same industry.
PRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 15.76 |
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)0.61
PEG (5Y)3.97
EPS Next 2Y7.95%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
PRU has a Yearly Dividend Yield of 4.61%, which is a nice return.
Compared to an average industry Dividend Yield of 2.64, PRU pays a bit more dividend than its industry peers.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
The dividend of PRU has a limited annual growth rate of 5.51%.
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)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 2Y7.95%
EPS Next 3Y7.47%
115.68
-1.4 (-1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.87%
Inst Owner Change0.54%
Ins Owners0.1%
Ins Owner Change-2.85%
Market Cap40.49B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target119.73 (3.5%)
Short Float %2.17%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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)0.53%
PT rev (3m)2.3%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)2.34%
EPS NY rev (3m)5.29%
Revenue NQ rev (1m)-3.12%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.76 | ||
| P/FCF | 7.68 | ||
| P/OCF | 7.68 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 15.76 |
EPS(TTM)14.09
EY12.18%
EPS(NY)15.09
Fwd EY13.05%
FCF(TTM)15.07
FCFY13.03%
OCF(TTM)15.07
OCFY13.03%
SpS152.97
BVpS91.7
TBVpS91.7
PEG (NY)0.61
PEG (5Y)3.97
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
WACC8.42%
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 Y13.45%
EPS Next 2Y7.95%
EPS Next 3Y7.47%
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-17.41%
Revenue Next 2Y-8.39%
Revenue Next 3Y-4.35%
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 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 8.21 and the Price/Book (PB) ratio is 1.26.
Can you provide the financial health for PRU stock?
The financial health rating of PRUDENTIAL FINANCIAL INC (PRU) is 1 / 10.