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PRUDENTIAL FINANCIAL INC (PLL.DE) Stock Fundamental Analysis

FRA:PLL - Deutsche Boerse Ag - US7443201022 - Common Stock - Currency: EUR

87.7  +1.42 (+1.65%)

Fundamental Rating

3

Taking everything into account, PLL scores 3 out of 10 in our fundamental rating. PLL was compared to 37 industry peers in the Insurance industry. Both the profitability and financial health of PLL have multiple concerns. PLL has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

PLL had positive earnings in the past year.
In the past year PLL had a positive cash flow from operations.
In multiple years PLL reported negative net income over the last 5 years.
In the past 5 years PLL always reported a positive cash flow from operatings.
PLL.DE Yearly Net Income VS EBIT VS OCF VS FCFPLL.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 5B 10B 15B 20B

1.2 Ratios

PLL's Return On Assets of 0.30% is on the low side compared to the rest of the industry. PLL is outperformed by 77.78% of its industry peers.
PLL has a Return On Equity of 7.88%. This is in the lower half of the industry: PLL underperforms 75.00% of its industry peers.
PLL has a worse Return On Invested Capital (0.42%) than 72.22% of its industry peers.
Industry RankSector Rank
ROA 0.3%
ROE 7.88%
ROIC 0.42%
ROA(3y)0.19%
ROA(5y)0.3%
ROE(3y)2.31%
ROE(5y)4.35%
ROIC(3y)N/A
ROIC(5y)N/A
PLL.DE Yearly ROA, ROE, ROICPLL.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10

1.3 Margins

PLL has a Profit Margin of 2.94%. This is in the lower half of the industry: PLL underperforms 75.00% of its industry peers.
PLL has a worse Operating Margin (4.98%) than 86.11% of its industry peers.
Industry RankSector Rank
OM 4.98%
PM (TTM) 2.94%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
PLL.DE Yearly Profit, Operating, Gross MarginsPLL.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10

1

2. Health

2.1 Basic Checks

PLL 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, PLL has less shares outstanding
Compared to 1 year ago, PLL has a worse debt to assets ratio.
PLL.DE Yearly Shares OutstandingPLL.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M
PLL.DE Yearly Total Debt VS Total AssetsPLL.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200B 400B 600B 800B

2.2 Solvency

PLL has a debt to FCF ratio of 7.47. This is a slightly negative value and a sign of low solvency as PLL would need 7.47 years to pay back of all of its debts.
PLL has a Debt to FCF ratio (7.47) which is comparable to the rest of the industry.
PLL has a Debt/Equity ratio of 0.78. This is a neutral value indicating PLL is somewhat dependend on debt financing.
PLL has a Debt to Equity ratio of 0.78. This is in the lower half of the industry: PLL underperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 7.47
Altman-Z N/A
ROIC/WACC0.05
WACC8.07%
PLL.DE Yearly LT Debt VS Equity VS FCFPLL.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PLL.DE Yearly Current Assets VS Current LiabilitesPLL.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B

5

3. Growth

3.1 Past

PLL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.13%, which is quite good.
The Earnings Per Share has been decreasing by -2.21% on average over the past years.
PLL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.71%.
PLL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.03% yearly.
EPS 1Y (TTM)12.13%
EPS 3Y-6.81%
EPS 5Y-2.21%
EPS Q2Q%61.5%
Revenue 1Y (TTM)9.71%
Revenue growth 3Y-2.67%
Revenue growth 5Y0.03%
Sales Q2Q%-59.22%

3.2 Future

PLL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.21% yearly.
The Revenue is expected to grow by 0.34% on average over the next years.
EPS Next Y26.19%
EPS Next 2Y18.86%
EPS Next 3Y14.74%
EPS Next 5Y6.21%
Revenue Next Year-13.05%
Revenue Next 2Y-7.12%
Revenue Next 3Y-4.05%
Revenue Next 5Y0.34%

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.
PLL.DE Yearly Revenue VS EstimatesPLL.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B
PLL.DE Yearly EPS VS EstimatesPLL.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.32, which indicates a very decent valuation of PLL.
Compared to the rest of the industry, the Price/Earnings ratio of PLL indicates a somewhat cheap valuation: PLL is cheaper than 69.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PLL to the average of the S&P500 Index (27.25), we can say PLL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.14, the valuation of PLL can be described as very cheap.
The rest of the industry has a similar Price/Forward Earnings ratio as PLL.
The average S&P500 Price/Forward Earnings ratio is at 36.80. PLL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.32
Fwd PE 7.14
PLL.DE Price Earnings VS Forward Price EarningsPLL.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PLL.
PLL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.69
EV/EBITDA 10.62
PLL.DE Per share dataPLL.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

PLL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PLL's earnings are expected to grow with 14.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y18.86%
EPS Next 3Y14.74%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.11%, PLL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.44, PLL has a dividend in line with its industry peers.
PLL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 5.11%

5.2 History

The dividend of PLL is nicely growing with an annual growth rate of 10.01%!
Dividend Growth(5Y)10.01%
Div Incr Years0
Div Non Decr Years0
PLL.DE Yearly Dividends per sharePLL.DE Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 1 2 3 4

5.3 Sustainability

90.31% of the earnings are spent on dividend by PLL. This is not a sustainable payout ratio.
The dividend of PLL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.31%
EPS Next 2Y18.86%
EPS Next 3Y14.74%
PLL.DE Yearly Income VS Free CF VS DividendPLL.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 5B 10B 15B 20B
PLL.DE Dividend Payout.PLL.DE Dividend Payout, showing the Payout Ratio.PLL.DE Dividend Payout.PayoutRetained Earnings

PRUDENTIAL FINANCIAL INC

FRA:PLL (11/24/2023, 7:00:00 PM)

87.7

+1.42 (+1.65%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap31.66B
Analysts56.67
Price Target94.3 (7.53%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.11%
Yearly Dividend4.9
Dividend Growth(5Y)10.01%
DP90.31%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.74%
Min EPS beat(2)-3.25%
Max EPS beat(2)8.73%
EPS beat(4)1
Avg EPS beat(4)-2.33%
Min EPS beat(4)-10.1%
Max EPS beat(4)8.73%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)51.44%
Min Revenue beat(2)-36.22%
Max Revenue beat(2)139.1%
Revenue beat(4)2
Avg Revenue beat(4)32.5%
Min Revenue beat(4)-36.22%
Max Revenue beat(4)139.1%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.09%
PT rev (3m)2.09%
EPS NQ rev (1m)-10.18%
EPS NQ rev (3m)-10.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)3.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.75%
Valuation
Industry RankSector Rank
PE 8.32
Fwd PE 7.14
P/S 0.5
P/FCF 12.69
P/OCF 12.69
P/B 1.33
P/tB 1.33
EV/EBITDA 10.62
EPS(TTM)10.54
EY12.02%
EPS(NY)12.29
Fwd EY14.01%
FCF(TTM)6.91
FCFY7.88%
OCF(TTM)6.91
OCFY7.88%
SpS176.45
BVpS65.75
TBVpS65.75
PEG (NY)0.32
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.3%
ROE 7.88%
ROCE 0.51%
ROIC 0.42%
ROICexc 0.43%
ROICexgc 0.66%
OM 4.98%
PM (TTM) 2.94%
GM N/A
FCFM 3.92%
ROA(3y)0.19%
ROA(5y)0.3%
ROE(3y)2.31%
ROE(5y)4.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 7.47
Debt/EBITDA 5.76
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 77.32%
Profit Quality 133.43%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score9
WACC8.07%
ROIC/WACC0.05
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.13%
EPS 3Y-6.81%
EPS 5Y-2.21%
EPS Q2Q%61.5%
EPS Next Y26.19%
EPS Next 2Y18.86%
EPS Next 3Y14.74%
EPS Next 5Y6.21%
Revenue 1Y (TTM)9.71%
Revenue growth 3Y-2.67%
Revenue growth 5Y0.03%
Sales Q2Q%-59.22%
Revenue Next Year-13.05%
Revenue Next 2Y-7.12%
Revenue Next 3Y-4.05%
Revenue Next 5Y0.34%
EBIT growth 1Y148.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.05%
FCF growth 3Y-35.94%
FCF growth 5Y-17.46%
OCF growth 1Y38.05%
OCF growth 3Y-35.94%
OCF growth 5Y-17.46%