PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
USA - NASDAQ:PFG - US74251V1026 - Common Stock
82.19 USD
+1.18 (+1.46%)
82.19 USD
0 (0%)
PFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. PFG has a medium profitability rating, but doesn't score so well on its financial health evaluation. PFG has a decent growth rate and is not valued too expensively. PFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFG had positive earnings in the past year.
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's Return On Assets of 0.47% is on the low side compared to the rest of the industry. PFG is outperformed by 73.47% of its industry peers.
PFG has a Return On Equity of 13.49%. This is in the better half of the industry: PFG outperforms 61.90% of its industry peers.
PFG has a Return On Invested Capital of 0.42%. This is in the lower half of the industry: PFG underperforms 68.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFG is below the industry average of 4.44%.
| Industry Rank | Sector 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%
1.3 Margins
PFG's Profit Margin of 10.18% is fine compared to the rest of the industry. PFG outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of PFG has grown nicely.
With a Operating Margin value of 10.34%, PFG perfoms like the industry average, outperforming 41.50% of the companies in the same industry.
PFG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PFG is destroying value.
The number of shares outstanding for PFG has been reduced compared to 1 year ago.
Compared to 5 years ago, PFG has less shares outstanding
The debt/assets ratio for PFG has remained at the same level compared to a year ago.
2.2 Solvency
PFG has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
PFG's Debt to FCF ratio of 0.94 is fine compared to the rest of the industry. PFG outperforms 70.07% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC7.82%
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 16.59% over the past year.
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.
PFG shows a decrease in Revenue. In the last year, the revenue decreased by -2.71%.
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
The Earnings Per Share is expected to grow by 12.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y20.3%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
EPS Next 5Y12.83%
Revenue Next Year3.11%
Revenue Next 2Y5.33%
Revenue Next 3Y5.64%
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.
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
Based on the Price/Earnings ratio of 10.26, the valuation of PFG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PFG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PFG to the average of the S&P500 Index (25.51), we can say PFG is valued rather cheaply.
PFG is valuated reasonably with a Price/Forward Earnings ratio of 8.68.
PFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFG is cheaper than 65.99% of the companies in the same industry.
PFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFG is valued a bit cheaper than the industry average as 62.59% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 74.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.39 | ||
| EV/EBITDA | 7.37 |
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 14.19% in the coming years.
PEG (NY)0.51
PEG (5Y)2.26
EPS Next 2Y16.45%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
PFG has a Yearly Dividend Yield of 3.73%.
Compared to an average industry Dividend Yield of 3.52, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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
43.04% of the earnings are spent on dividend by PFG. 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 2Y16.45%
EPS Next 3Y14.19%
82.19
+1.18 (+1.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change-1.87%
Ins Owners0.7%
Ins Owner Change2.48%
Market Cap18.31B
Revenue(TTM)15.46B
Net Income(TTM)1.57B
Analysts67.06
Price Target89.42 (8.8%)
Short Float %1.72%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend2.85
Dividend Growth(5Y)5.52%
DP43.04%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)2.59%
PT rev (3m)2.81%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)1.9%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.18 | ||
| P/FCF | 4.39 | ||
| P/OCF | 4.31 | ||
| P/B | 1.57 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)8.01
EY9.75%
EPS(NY)9.46
Fwd EY11.52%
FCF(TTM)18.73
FCFY22.78%
OCF(TTM)19.09
OCFY23.22%
SpS69.41
BVpS52.37
TBVpS39.59
PEG (NY)0.51
PEG (5Y)2.26
Graham Number97.15
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.82%
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 Y20.3%
EPS Next 2Y16.45%
EPS Next 3Y14.19%
EPS Next 5Y12.83%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%5.6%
Revenue Next Year3.11%
Revenue Next 2Y5.33%
Revenue Next 3Y5.64%
Revenue Next 5Y5.53%
EBIT growth 1Y2.76%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year20.92%
EBIT Next 3Y9.62%
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.
Can you provide the valuation status for PRINCIPAL FINANCIAL GROUP?
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 4 / 10.
Can you provide the expected EPS growth for PFG stock?
The Earnings per Share (EPS) of PRINCIPAL FINANCIAL GROUP (PFG) is expected to grow by 20.3% in the next year.
Can you provide the dividend sustainability for PFG stock?
The dividend rating of PRINCIPAL FINANCIAL GROUP (PFG) is 7 / 10 and the dividend payout ratio is 43.04%.