PRUDENTIAL FINANCIAL INC (1PRU.MI) Stock Fundamental Analysis
BIT:1PRU - Euronext Milan - US7443201022 - Common Stock - Currency: EUR
Taking everything into account, 1PRU scores 3 out of 10 in our fundamental rating. 1PRU was compared to 38 industry peers in the Insurance industry. Both the profitability and financial health of 1PRU have multiple concerns. 1PRU is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1PRU had positive earnings in the past year.
In the past year 1PRU had a positive cash flow from operations.
In multiple years 1PRU reported negative net income over the last 5 years.
In the past 5 years 1PRU always reported a positive cash flow from operatings.
1.2 Ratios
1PRU has a worse Return On Assets (0.37%) than 80.56% of its industry peers.
With a Return On Equity value of 9.67%, 1PRU is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
1PRU's Return On Invested Capital of 0.36% is on the low side compared to the rest of the industry. 1PRU is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 9.67% | ||
| ROIC | 0.36% |
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
1PRU's Profit Margin of 4.05% is on the low side compared to the rest of the industry. 1PRU is outperformed by 72.22% of its industry peers.
In the last couple of years the Profit Margin of 1PRU has declined.
Looking at the Operating Margin, with a value of 4.83%, 1PRU is doing worse than 80.56% of the companies in the same industry.
1PRU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.83% | ||
| PM (TTM) | 4.05% | ||
| 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 1PRU is destroying value.
The number of shares outstanding for 1PRU has been reduced compared to 1 year ago.
The number of shares outstanding for 1PRU has been reduced compared to 5 years ago.
1PRU has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1PRU is 2.54, which is a good value as it means it would take 1PRU, 2.54 years of fcf income to pay off all of its debts.
1PRU has a better Debt to FCF ratio (2.54) than 69.44% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 1PRU is somewhat dependend on debt financing.
The Debt to Equity ratio of 1PRU (0.76) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC7.94%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.45% over the past year.
1PRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
Looking at the last year, 1PRU shows a decrease in Revenue. The Revenue has decreased by -6.36% in the last year.
The Revenue has been growing slightly by 0.36% on average over the past years.
EPS 1Y (TTM)11.45%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%14.73%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-13.76%
3.2 Future
Based on estimates for the next years, 1PRU will show a decrease in Earnings Per Share. The EPS will decrease by -1.38% on average per year.
The Revenue is expected to decrease by -4.26% on average over the next years.
EPS Next Y11.04%
EPS Next 2Y8.72%
EPS Next 3Y8.71%
EPS Next 5Y-1.38%
Revenue Next Year-13.83%
Revenue Next 2Y-5.56%
Revenue Next 3Y-1.73%
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.
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 9.13 indicates a reasonable valuation of 1PRU.
91.67% of the companies in the same industry are more expensive than 1PRU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1PRU to the average of the S&P500 Index (26.99), we can say 1PRU is valued rather cheaply.
1PRU is valuated reasonably with a Price/Forward Earnings ratio of 8.23.
Based on the Price/Forward Earnings ratio, 1PRU is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, 1PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PRU indicates a somewhat cheap valuation: 1PRU is cheaper than 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1PRU is valued cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.98 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
1PRU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)4.42
EPS Next 2Y8.72%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.90%, 1PRU is a good candidate for dividend investing.
1PRU's Dividend Yield is a higher than the industry average which is at 4.36.
Compared to an average S&P500 Dividend Yield of 2.40, 1PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
5.2 History
The dividend of 1PRU has a limited annual growth rate of 5.51%.
Dividend Growth(5Y)5.51%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1PRU pays out 70.19% of its income as dividend. This is not a sustainable payout ratio.
1PRU's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP70.19%
EPS Next 2Y8.72%
EPS Next 3Y8.71%
BIT:1PRU (2/27/2025, 7:00:00 PM)
108.95
+1.7 (+1.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.12%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap39.00B
Analysts67.62
Price Target121.84 (11.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
Yearly Dividend4.88
Dividend Growth(5Y)5.51%
DP70.19%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.35%
Min EPS beat(2)-9.72%
Max EPS beat(2)-0.98%
EPS beat(4)0
Avg EPS beat(4)-3.69%
Min EPS beat(4)-9.72%
Max EPS beat(4)-0.98%
EPS beat(8)1
Avg EPS beat(8)-2.67%
EPS beat(12)3
Avg EPS beat(12)-2.6%
EPS beat(16)7
Avg EPS beat(16)6.7%
Revenue beat(2)1
Avg Revenue beat(2)8.54%
Min Revenue beat(2)-12.43%
Max Revenue beat(2)29.51%
Revenue beat(4)3
Avg Revenue beat(4)16.65%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)48.21%
Revenue beat(8)6
Avg Revenue beat(8)26.81%
Revenue beat(12)8
Avg Revenue beat(12)20.73%
Revenue beat(16)12
Avg Revenue beat(16)22.35%
PT rev (1m)11.44%
PT rev (3m)11.44%
EPS NQ rev (1m)-3.94%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)4.82%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)4.14%
Revenue NY rev (3m)4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 8.23 | ||
| P/S | 0.64 | ||
| P/FCF | 4.98 | ||
| P/OCF | 4.98 | ||
| P/B | 1.52 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)11.93
EY10.95%
EPS(NY)13.24
Fwd EY12.16%
FCF(TTM)21.87
FCFY20.08%
OCF(TTM)21.87
OCFY20.08%
SpS171.1
BVpS71.71
TBVpS71.71
PEG (NY)0.83
PEG (5Y)4.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 9.67% | ||
| ROCE | 0.44% | ||
| ROIC | 0.36% | ||
| ROICexc | 0.37% | ||
| ROICexgc | 0.56% | ||
| OM | 4.83% | ||
| PM (TTM) | 4.05% | ||
| GM | N/A | ||
| FCFM | 12.78% |
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
ROICexcg growth 3Y-28.02%
ROICexcg 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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.61 | ||
| Cash Conversion | 236.69% | ||
| Profit Quality | 315.59% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.94%
ROIC/WACC0.05
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 Y11.04%
EPS Next 2Y8.72%
EPS Next 3Y8.71%
EPS Next 5Y-1.38%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-13.76%
Revenue Next Year-13.83%
Revenue Next 2Y-5.56%
Revenue Next 3Y-1.73%
Revenue Next 5Y-4.26%
EBIT growth 1Y-37.03%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.6%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y30.6%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%