PRINCIPAL FINANCIAL GROUP (PFG)
US74251V1026 - Common Stock
Overall PFG gets a fundamental rating of 4 out of 10. We evaluated PFG against 141 industry peers in the Insurance industry. PFG has an average financial health and profitability rating. PFG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PFG was profitable.
In the past year PFG had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.20%, PFG is doing worse than 66.91% of the companies in the same industry.
The Return On Equity of PFG (5.71%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 0.52%, PFG perfoms like the industry average, outperforming 43.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PFG is below the industry average of 4.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 5.71% | ||
| ROIC | 0.52% |
ROA(3y)0.79%
ROA(5y)0.67%
ROE(3y)21.07%
ROE(5y)16.24%
ROIC(3y)0.6%
ROIC(5y)0.57%
1.3 Margins
PFG has a Profit Margin (4.33%) which is comparable to the rest of the industry.
PFG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.88%, PFG is in the better half of the industry, outperforming 60.43% of the companies in the same industry.
In the last couple of years the Operating Margin of PFG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.88% | ||
| PM (TTM) | 4.33% | ||
| GM | N/A |
OM growth 3Y3.04%
OM growth 5Y-0.21%
PM growth 3Y-23.59%
PM growth 5Y-17.18%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PFG is destroying value.
PFG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFG has less shares outstanding
The debt/assets ratio for PFG has been reduced compared to a year ago.
2.2 Solvency
PFG has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.08, PFG is in the better half of the industry, outperforming 72.66% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that PFG is not too dependend on debt financing.
PFG has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC8.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for PFG have decreased by -1.65% in the last year.
Measured over the past 5 years, PFG shows a small growth in Earnings Per Share. The EPS has been growing by 3.48% on average per year.
Looking at the last year, PFG shows a small growth in Revenue. The Revenue has grown by 4.00% in the last year.
The Revenue has been growing slightly by 0.67% on average over the past years.
EPS 1Y (TTM)-1.65%
EPS 3Y9.92%
EPS 5Y3.48%
EPS growth Q2Q7.65%
Revenue 1Y (TTM)4%
Revenue growth 3Y0.02%
Revenue growth 5Y0.67%
Revenue growth Q2Q10.47%
3.2 Future
The Earnings Per Share is expected to grow by 12.71% on average over the next years. This is quite good.
Based on estimates for the next years, PFG will show a small growth in Revenue. The Revenue will grow by 7.61% on average per year.
EPS Next Y17.14%
EPS Next 2Y13.85%
EPS Next 3Y12.71%
EPS Next 5YN/A
Revenue Next Year10.83%
Revenue Next 2Y8.16%
Revenue Next 3Y7.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PFG is valuated correctly with a Price/Earnings ratio of 12.43.
The rest of the industry has a similar Price/Earnings ratio as PFG.
When comparing the Price/Earnings ratio of PFG to the average of the S&P500 Index (25.20), we can say PFG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.61, the valuation of PFG can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as PFG.
PFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 73.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PFG is valued a bit cheaper than 69.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | 7.18 |
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.
PFG's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)3.58
EPS Next 2Y13.85%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.50%. Purely for dividend investing, there may be better candidates out there.
PFG's Dividend Yield is a higher than the industry average which is at 4.36.
PFG's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of PFG has a limited annual growth rate of 4.37%.
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)4.37%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
100.37% of the earnings are spent on dividend by PFG. This is not a sustainable payout ratio.
The dividend of PFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.37%
EPS Next 2Y13.85%
EPS Next 3Y12.71%
PRINCIPAL FINANCIAL GROUP
NASDAQ:PFG (4/23/2024, 3:30:01 PM)
After market: 81.51 0 (0%)81.51
+0.16 (+0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 10.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 5.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.88% | ||
| PM (TTM) | 4.33% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.65%
EPS 3Y9.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4%
Revenue growth 3Y0.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y