PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
107.97 USD
-0.38 (-0.35%)
107.97 USD
0 (0%)
PRU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 147 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. 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.
In the past 5 years PRU always reported a positive cash flow from operatings.
1.2 Ratios
PRU has a worse Return On Assets (0.33%) than 83.67% 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 67.35% of its industry peers.
With a Return On Invested Capital value of 0.35%, PRU is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| 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
Looking at the Profit Margin, with a value of 4.83%, PRU is doing worse than 69.39% of the companies in the same industry.
In the last couple of years the Profit Margin of PRU has declined.
PRU has a worse Operating Margin (6.15%) than 73.47% of its industry peers.
PRU's Operating Margin has declined in the last couple of years.
| 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
PRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRU has been reduced compared to 1 year ago.
The number of shares outstanding for PRU has been reduced compared to 5 years ago.
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 61.90% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that PRU is somewhat dependend on debt financing.
The Debt to Equity ratio of PRU (0.67) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.04
WACC8.31%
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.
PRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
The Revenue for PRU has decreased by -24.65% in the past year. This is quite bad
The Revenue has been growing slightly by 0.36% on average over the past years.
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 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
The Price/Earnings ratio is 7.66, which indicates a rather cheap valuation of PRU.
Compared to the rest of the industry, the Price/Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 72.79% of the companies listed in the same industry.
PRU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 7.18.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than the industry average as 74.83% of the companies are valued more expensively.
PRU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
PRU's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 11.84 |
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)0.71
PEG (5Y)3.7
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.
PRU's Dividend Yield is rather good when compared to the industry average which is at 3.46. PRU pays more dividend than 85.03% of the companies 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 been paying a dividend for at least 10 years, so it has a reliable track record.
PRU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
74.23% of the earnings are spent on dividend by PRU. 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%
107.97
-0.38 (-0.35%)
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 Cap38.01B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target119.58 (10.75%)
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 | 7.66 | ||
| Fwd PE | 7.18 | ||
| P/S | 0.71 | ||
| P/FCF | 7.21 | ||
| P/OCF | 7.21 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)14.09
EY13.05%
EPS(NY)15.04
Fwd EY13.93%
FCF(TTM)14.98
FCFY13.88%
OCF(TTM)14.98
OCFY13.88%
SpS152.1
BVpS91.18
TBVpS91.18
PEG (NY)0.71
PEG (5Y)3.7
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
WACC8.31%
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 7.66 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for PRU stock?
The financial health rating of PRUDENTIAL FINANCIAL INC (PRU) is 1 / 10.