PRINCIPAL FINANCIAL GROUP (PFG) Stock Fundamental Analysis
NASDAQ:PFG - US74251V1026 - Common Stock
80.28 USD
-0.44 (-0.55%)
80.28 USD
0 (0%)
Taking everything into account, PFG scores 4 out of 10 in our fundamental rating. PFG was compared to 143 industry peers in the Insurance industry. Both the profitability and financial health of PFG have multiple concerns. PFG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally PFG also has an excellent dividend rating.
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.
Each year in the past 5 years PFG had a positive operating cash flow.
1.2 Ratios
PFG has a worse Return On Assets (0.35%) than 68.53% of its industry peers.
PFG's Return On Equity of 9.98% is in line compared to the rest of the industry. PFG outperforms 51.05% of its industry peers.
PFG has a worse Return On Invested Capital (0.44%) than 63.64% of its industry peers.
PFG had an Average Return On Invested Capital over the past 3 years of 0.56%. This is below the industry average of 4.11%.
| 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
Looking at the Profit Margin, with a value of 7.45%, PFG is in line with its industry, outperforming 53.15% of the companies in the same industry.
In the last couple of years the Profit Margin of PFG has grown nicely.
Looking at the Operating Margin, with a value of 10.56%, PFG is in line with its industry, outperforming 49.65% of the companies in the same industry.
In the last couple of years the Operating Margin of PFG has declined.
| 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
PFG has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
PFG has a better Debt to FCF ratio (0.92) than 70.63% 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.
With a Debt to Equity ratio value of 0.35, PFG perfoms like the industry average, outperforming 41.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC7.91%
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.
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 -0.75% in the past year.
The Revenue has been decreasing by -0.73% on average over the past years.
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
PFG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.45% yearly.
PFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y20.37%
EPS Next 2Y15.53%
EPS Next 3Y13.41%
EPS Next 5Y12.45%
Revenue Next Year2.7%
Revenue Next 2Y5%
Revenue Next 3Y5.35%
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.
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
With a Price/Earnings ratio of 10.47, the valuation of PFG can be described as very reasonable.
Based on the Price/Earnings ratio, PFG is valued a bit cheaper than 60.84% of the companies in the same industry.
PFG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 8.62, which indicates a very decent valuation of PFG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 65.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, PFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
PFG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PFG is cheaper than 61.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFG indicates a somewhat cheap valuation: PFG is cheaper than 76.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.16 | ||
| EV/EBITDA | 7.88 |
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 13.41% in the coming years.
PEG (NY)0.51
PEG (5Y)2.3
EPS Next 2Y15.53%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, PFG has a reasonable but not impressive dividend return.
PFG's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.34, PFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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
58.74% 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.
DP58.74%
EPS Next 2Y15.53%
EPS Next 3Y13.41%
80.28
-0.44 (-0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-1.62%
Ins Owners1.12%
Ins Owner Change-0.31%
Market Cap17.88B
Analysts67.78
Price Target87.16 (8.57%)
Short Float %2.11%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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)4.6%
PT rev (3m)6.94%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)3.11%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 8.62 | ||
| P/S | 1.17 | ||
| P/FCF | 4.16 | ||
| P/OCF | 4.09 | ||
| P/B | 1.57 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)7.67
EY9.55%
EPS(NY)9.32
Fwd EY11.6%
FCF(TTM)19.31
FCFY24.06%
OCF(TTM)19.64
OCFY24.47%
SpS68.69
BVpS51.24
TBVpS38.38
PEG (NY)0.51
PEG (5Y)2.3
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
WACC7.91%
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 Y20.37%
EPS Next 2Y15.53%
EPS Next 3Y13.41%
EPS Next 5Y12.45%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y3.21%
Revenue growth 5Y-0.73%
Sales Q2Q%-10.71%
Revenue Next Year2.7%
Revenue Next 2Y5%
Revenue Next 3Y5.35%
Revenue Next 5Y5.87%
EBIT growth 1Y-5.78%
EBIT growth 3Y-9.8%
EBIT growth 5Y-3.23%
EBIT Next Year13.68%
EBIT Next 3Y7.61%
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%