PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
USA - NASDAQ:PFG - US74251V1026 - Common Stock
78.955 USD
+0.56 (+0.72%)
PFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. PFG may be in some trouble as it scores bad on both profitability and health. PFG is not valued too expensively and it also shows a decent growth rate. PFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFG was profitable.
PFG had a positive operating cash flow in the past year.
PFG had positive earnings in each of the past 5 years.
In the past 5 years PFG always reported a positive cash flow from operatings.
1.2 Ratios
PFG has a worse Return On Assets (0.35%) than 73.10% of its industry peers.
PFG's Return On Equity of 9.98% is in line compared to the rest of the industry. PFG outperforms 51.72% of its industry peers.
The Return On Invested Capital of PFG (0.44%) is worse than 66.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFG is below the industry average of 4.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 9.98% | ||
| ROIC | 0.44% |
ROA(3y)0.78%
ROA(5y)0.67%
ROE(3y)22.52%
ROE(5y)17.16%
ROIC(3y)0.56%
ROIC(5y)0.55%
1.3 Margins
PFG has a Profit Margin (7.45%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PFG has grown nicely.
The Operating Margin of PFG (10.56%) is comparable to the rest of the industry.
PFG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | 7.45% | ||
| GM | N/A |
OM growth 3Y-12.61%
OM growth 5Y-2.51%
PM growth 3Y-3.3%
PM growth 5Y3.17%
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 PFG is destroying value.
Compared to 1 year ago, PFG has less shares outstanding
PFG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PFG has remained at the same level compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of PFG is 0.92, which is an excellent value as it means it would take PFG, only 0.92 years of fcf income to pay off all of its debts.
PFG's Debt to FCF ratio of 0.92 is fine compared to the rest of the industry. PFG outperforms 71.72% of its industry peers.
PFG has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
PFG has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: PFG outperforms 40.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC7.72%
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 12.30% over the past year.
The Earnings Per Share has been growing slightly by 4.54% on average over the past years.
Looking at the last year, PFG shows a decrease in Revenue. The Revenue has decreased by -0.75% in the last year.
Measured over the past years, PFG shows a decrease in Revenue. The Revenue has been decreasing by -0.73% on average per year.
EPS 1Y (TTM)12.3%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%32.52%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%-10.71%
3.2 Future
Based on estimates for the next years, PFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.45% on average per year.
Based on estimates for the next years, PFG will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y20.46%
EPS Next 2Y15.42%
EPS Next 3Y13.5%
EPS Next 5Y12.45%
Revenue Next Year3.48%
Revenue Next 2Y5.12%
Revenue Next 3Y5.49%
Revenue Next 5Y5.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PFG is valuated reasonably with a Price/Earnings ratio of 10.29.
The rest of the industry has a similar Price/Earnings ratio as PFG.
The average S&P500 Price/Earnings ratio is at 27.29. PFG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.49, the valuation of PFG can be described as very reasonable.
PFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFG is cheaper than 64.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, PFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFG is valued a bit cheaper than the industry average as 61.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PFG is valued a bit cheaper than the industry average as 77.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.09 | ||
| EV/EBITDA | 7.69 |
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.
A more expensive valuation may be justified as PFG's earnings are expected to grow with 13.50% in the coming years.
PEG (NY)0.5
PEG (5Y)2.27
EPS Next 2Y15.42%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, PFG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, PFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of PFG has a limited annual growth rate of 5.52%.
PFG has been paying a dividend for at least 10 years, so it has a reliable track record.
PFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.52%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
PFG pays out 58.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.74%
EPS Next 2Y15.42%
EPS Next 3Y13.5%
NASDAQ:PFG (10/17/2025, 3:21:04 PM)
78.955
+0.56 (+0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change0.38%
Ins Owners0.7%
Ins Owner Change1.4%
Market Cap17.59B
Analysts55
Price Target87.16 (10.39%)
Short Float %2.1%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend2.85
Dividend Growth(5Y)5.52%
DP58.74%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.25%
Min EPS beat(2)-1.89%
Max EPS beat(2)8.39%
EPS beat(4)1
Avg EPS beat(4)-1.96%
Min EPS beat(4)-13.6%
Max EPS beat(4)8.39%
EPS beat(8)3
Avg EPS beat(8)-1.63%
EPS beat(12)5
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)2.38%
Revenue beat(2)0
Avg Revenue beat(2)-5.21%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.55%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)-0.49%
Revenue beat(8)4
Avg Revenue beat(8)0.57%
Revenue beat(12)7
Avg Revenue beat(12)2.37%
Revenue beat(16)9
Avg Revenue beat(16)0.75%
PT rev (1m)0%
PT rev (3m)6.33%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 8.49 | ||
| P/S | 1.15 | ||
| P/FCF | 4.09 | ||
| P/OCF | 4.02 | ||
| P/B | 1.54 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)7.67
EY9.71%
EPS(NY)9.3
Fwd EY11.78%
FCF(TTM)19.31
FCFY24.46%
OCF(TTM)19.64
OCFY24.88%
SpS68.69
BVpS51.24
TBVpS38.38
PEG (NY)0.5
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 9.98% | ||
| ROCE | 0.5% | ||
| ROIC | 0.44% | ||
| ROICexc | 0.44% | ||
| ROICexgc | 1.23% | ||
| OM | 10.56% | ||
| PM (TTM) | 7.45% | ||
| GM | N/A | ||
| FCFM | 28.12% |
ROA(3y)0.78%
ROA(5y)0.67%
ROE(3y)22.52%
ROE(5y)17.16%
ROIC(3y)0.56%
ROIC(5y)0.55%
ROICexc(3y)0.57%
ROICexc(5y)0.56%
ROICexgc(3y)1.58%
ROICexgc(5y)1.52%
ROCE(3y)0.64%
ROCE(5y)0.63%
ROICexcg growth 3Y-8.99%
ROICexcg growth 5Y-5.01%
ROICexc growth 3Y-10.54%
ROICexc growth 5Y-5.59%
OM growth 3Y-12.61%
OM growth 5Y-2.51%
PM growth 3Y-3.3%
PM growth 5Y3.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 10.72% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 189.95% | ||
| Profit Quality | 377.51% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.72%
ROIC/WACC0.06
Cap/Depr(3y)13.6%
Cap/Depr(5y)15.82%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.72%
Profit Quality(3y)315.01%
Profit Quality(5y)280.11%
High Growth Momentum
Growth
EPS 1Y (TTM)12.3%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%32.52%
EPS Next Y20.46%
EPS Next 2Y15.42%
EPS Next 3Y13.5%
EPS Next 5Y12.45%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%-10.71%
Revenue Next Year3.48%
Revenue Next 2Y5.12%
Revenue Next 3Y5.49%
Revenue Next 5Y5.87%
EBIT growth 1Y-5.78%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year20.92%
EBIT Next 3Y9.62%
EBIT Next 5YN/A
FCF growth 1Y7.16%
FCF growth 3Y13.65%
FCF growth 5Y-3.29%
OCF growth 1Y5.91%
OCF growth 3Y12.66%
OCF growth 5Y-3.47%