PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRU - US7443201022 - Common Stock
113.87 USD
+0.99 (+0.88%)
113.87 USD
0 (0%)
PRU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 148 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.
PRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.33%, PRU is doing worse than 81.76% of the companies in the same industry.
With a Return On Equity value of 8.05%, PRU is not doing good in the industry: 64.19% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.28%, PRU is not doing good in the industry: 71.62% of the companies in the same industry are doing better.
| 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's Profit Margin of 4.83% is on the low side compared to the rest of the industry. PRU is outperformed by 67.57% of its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
PRU has a Operating Margin of 4.87%. This is in the lower half of the industry: PRU underperforms 79.05% 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.
Compared to 1 year ago, PRU has less shares outstanding
PRU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRU is higher compared to a year ago.
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 61.49% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that 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 83.11% 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
WACC8.44%
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.
The Earnings Per Share has been growing slightly by 2.07% on average over the past years.
Looking at the last year, PRU shows a very negative growth in Revenue. The Revenue has decreased by -24.65% in the last year.
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
Based on estimates for the next years, PRU will show a small growth in Earnings Per Share. The EPS will grow by 0.81% on average per year.
PRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.18% yearly.
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
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.
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
A Price/Earnings ratio of 8.08 indicates a reasonable valuation of PRU.
PRU's Price/Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 73.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, PRU is valued rather cheaply.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 7.55.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRU indicates a slightly more expensive valuation: PRU is more expensive than 62.16% of the companies listed 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 | 7.56 | ||
| EV/EBITDA | 15.37 |
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)0.6
PEG (5Y)3.91
EPS Next 2Y7.94%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.78%, PRU is a good candidate for dividend investing.
PRU's Dividend Yield is rather good when compared to the industry average which is at 2.48. PRU pays more dividend than 82.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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%
113.87
+0.99 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.95%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change-2.84%
Market Cap39.85B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target120.43 (5.76%)
Short Float %2.36%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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)0.72%
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 | 8.08 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.74 | ||
| P/FCF | 7.56 | ||
| P/OCF | 7.56 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 15.37 |
EPS(TTM)14.09
EY12.37%
EPS(NY)15.09
Fwd EY13.25%
FCF(TTM)15.07
FCFY13.23%
OCF(TTM)15.07
OCFY13.23%
SpS152.97
BVpS91.7
TBVpS91.7
PEG (NY)0.6
PEG (5Y)3.91
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
WACC8.44%
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 8.08 and the Price/Book (PB) ratio is 1.24.
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%.