PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:PFG • US74251V1026

96.73 USD
+1.23 (+1.29%)
Last: Feb 6, 2026, 09:51 AM
Fundamental Rating

4

Overall PFG gets a fundamental rating of 4 out of 10. We evaluated PFG against 147 industry peers in the Insurance industry. Both the profitability and financial health of PFG have multiple concerns. PFG has a correct valuation and a medium growth rate. PFG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • PFG had positive earnings in the past year.
  • In the past year PFG had a positive cash flow from operations.
  • Each year in the past 5 years PFG has been profitable.
  • PFG had a positive operating cash flow in each of the past 5 years.
PFG Yearly Net Income VS EBIT VS OCF VS FCFPFG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.47%, PFG is doing worse than 73.47% of the companies in the same industry.
  • The Return On Equity of PFG (13.49%) is comparable to the rest of the industry.
  • The Return On Invested Capital of PFG (0.42%) is worse than 69.39% of its industry peers.
  • PFG had an Average Return On Invested Capital over the past 3 years of 0.56%. This is significantly below the industry average of 14.94%.
Industry RankSector Rank
ROA 0.47%
ROE 13.49%
ROIC 0.42%
ROA(3y)0.78%
ROA(5y)0.67%
ROE(3y)22.52%
ROE(5y)17.16%
ROIC(3y)0.56%
ROIC(5y)0.55%
PFG Yearly ROA, ROE, ROICPFG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • PFG's Profit Margin of 10.18% is fine compared to the rest of the industry. PFG outperforms 62.59% of its industry peers.
  • PFG's Profit Margin has improved in the last couple of years.
  • PFG has a worse Operating Margin (10.34%) than 60.54% of its industry peers.
  • PFG's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.34%
PM (TTM) 10.18%
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
PFG Yearly Profit, Operating, Gross MarginsPFG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • PFG 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, 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.
PFG Yearly Shares OutstandingPFG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
PFG Yearly Total Debt VS Total AssetsPFG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.2 Solvency

  • The Debt to FCF ratio of PFG is 0.94, which is an excellent value as it means it would take PFG, only 0.94 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 0.94, PFG is doing good in the industry, outperforming 70.07% of the companies in the same industry.
  • PFG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
  • PFG's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. PFG outperforms 48.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 0.94
Altman-Z N/A
ROIC/WACC0.05
WACC8.06%
PFG Yearly LT Debt VS Equity VS FCFPFG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PFG Yearly Current Assets VS Current LiabilitesPFG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • PFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.59%, which is quite good.
  • Measured over the past 5 years, PFG shows a small growth in Earnings Per Share. The EPS has been growing by 4.54% on average per year.
  • The Revenue has decreased by -2.71% in the past year.
  • The Revenue has been decreasing by -0.73% on average over the past years.
EPS 1Y (TTM)16.59%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%19.32%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%

3.2 Future

  • PFG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.83% yearly.
  • PFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y20%
EPS Next 2Y16.4%
EPS Next 3Y14.25%
EPS Next 5Y12.83%
Revenue Next Year1.36%
Revenue Next 2Y4.98%
Revenue Next 3Y5.02%
Revenue Next 5Y5.53%

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.
PFG Yearly Revenue VS EstimatesPFG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
PFG Yearly EPS VS EstimatesPFG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

  • PFG is valuated correctly with a Price/Earnings ratio of 12.08.
  • Compared to the rest of the industry, the Price/Earnings ratio of PFG is on the same level as its industry peers.
  • PFG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
  • Based on the Price/Forward Earnings ratio of 10.23, the valuation of PFG can be described as reasonable.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PFG.
  • When comparing the Price/Forward Earnings ratio of PFG to the average of the S&P500 Index (27.20), we can say PFG is valued rather cheaply.
Industry RankSector Rank
PE 12.08
Fwd PE 10.23
PFG Price Earnings VS Forward Price EarningsPFG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • PFG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • PFG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PFG is cheaper than 70.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.09
EV/EBITDA 8.65
PFG Per share dataPFG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • PFG's 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 14.25% in the coming years.
PEG (NY)0.6
PEG (5Y)2.66
EPS Next 2Y16.4%
EPS Next 3Y14.25%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.33%, PFG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.24, PFG pays a bit more dividend than its industry peers.
  • PFG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.33%

5.2 History

  • The dividend of PFG has a limited annual growth rate of 5.52%.
  • PFG has paid a dividend for at least 10 years, which is a reliable track record.
  • PFG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.52%
Div Incr Years16
Div Non Decr Years16
PFG Yearly Dividends per sharePFG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • PFG pays out 43.04% 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.
DP43.04%
EPS Next 2Y16.4%
EPS Next 3Y14.25%
PFG Yearly Income VS Free CF VS DividendPFG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
PFG Dividend Payout.PFG Dividend Payout, showing the Payout Ratio.PFG Dividend Payout.PayoutRetained Earnings

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PRINCIPAL FINANCIAL GROUP

NASDAQ:PFG (2/6/2026, 9:51:24 AM)

96.73

+1.23 (+1.29%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-27
Earnings (Next)02-09
Inst Owners75.65%
Inst Owner Change-2.12%
Ins Owners0.71%
Ins Owner Change0.23%
Market Cap21.25B
Revenue(TTM)15.46B
Net Income(TTM)1.57B
Analysts67.5
Price Target92.36 (-4.52%)
Short Float %2.11%
Short Ratio3.33
Dividend
Industry RankSector Rank
Dividend Yield 3.33%
Yearly Dividend2.85
Dividend Growth(5Y)5.52%
DP43.04%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.51%
Min EPS beat(2)-5.38%
Max EPS beat(2)8.39%
EPS beat(4)1
Avg EPS beat(4)0.1%
Min EPS beat(4)-5.38%
Max EPS beat(4)8.39%
EPS beat(8)2
Avg EPS beat(8)-2.96%
EPS beat(12)4
Avg EPS beat(12)-1.67%
EPS beat(16)8
Avg EPS beat(16)1.74%
Revenue beat(2)0
Avg Revenue beat(2)-6.84%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-3.75%
Revenue beat(4)0
Avg Revenue beat(4)-4.71%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)-0.49%
Revenue beat(8)3
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)1.61%
Revenue beat(16)9
Avg Revenue beat(16)1.45%
PT rev (1m)1.07%
PT rev (3m)3.28%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-2.32%
Valuation
Industry RankSector Rank
PE 12.08
Fwd PE 10.23
P/S 1.37
P/FCF 5.09
P/OCF 5
P/B 1.82
P/tB 2.41
EV/EBITDA 8.65
EPS(TTM)8.01
EY8.28%
EPS(NY)9.46
Fwd EY9.78%
FCF(TTM)18.99
FCFY19.63%
OCF(TTM)19.35
OCFY20.01%
SpS70.38
BVpS53.1
TBVpS40.14
PEG (NY)0.6
PEG (5Y)2.66
Graham Number97.83
Profitability
Industry RankSector Rank
ROA 0.47%
ROE 13.49%
ROCE 0.48%
ROIC 0.42%
ROICexc 0.43%
ROICexgc 1.2%
OM 10.34%
PM (TTM) 10.18%
GM N/A
FCFM 26.98%
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%
ROICexgc growth 3Y-8.99%
ROICexgc 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-Score8
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 0.94
Debt/EBITDA 1.72
Cap/Depr 11.71%
Cap/Sales 0.52%
Interest Coverage 250
Cash Conversion 186.07%
Profit Quality 265.11%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC8.06%
ROIC/WACC0.05
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)16.59%
EPS 3Y1.02%
EPS 5Y4.54%
EPS Q2Q%19.32%
EPS Next Y20%
EPS Next 2Y16.4%
EPS Next 3Y14.25%
EPS Next 5Y12.83%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%
Revenue Next Year1.36%
Revenue Next 2Y4.98%
Revenue Next 3Y5.02%
Revenue Next 5Y5.53%
EBIT growth 1Y2.76%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year19.48%
EBIT Next 3Y10.3%
EBIT Next 5YN/A
FCF growth 1Y6.76%
FCF growth 3Y13.65%
FCF growth 5Y-3.29%
OCF growth 1Y5.99%
OCF growth 3Y12.66%
OCF growth 5Y-3.47%

PRINCIPAL FINANCIAL GROUP / PFG FAQ

Can you provide the ChartMill fundamental rating for PRINCIPAL FINANCIAL GROUP?

ChartMill assigns a fundamental rating of 4 / 10 to PFG.


What is the valuation status for PFG stock?

ChartMill assigns a valuation rating of 6 / 10 to PRINCIPAL FINANCIAL GROUP (PFG). This can be considered as Fairly Valued.


What is the profitability of PFG stock?

PRINCIPAL FINANCIAL GROUP (PFG) has a profitability rating of 3 / 10.


What are the PE and PB ratios of PRINCIPAL FINANCIAL GROUP (PFG) stock?

The Price/Earnings (PE) ratio for PRINCIPAL FINANCIAL GROUP (PFG) is 12.08 and the Price/Book (PB) ratio is 1.82.


How sustainable is the dividend of PRINCIPAL FINANCIAL GROUP (PFG) stock?

The dividend rating of PRINCIPAL FINANCIAL GROUP (PFG) is 7 / 10 and the dividend payout ratio is 43.04%.