PRUDENTIAL FINANCIAL INC - PRU 5.95 09/01/62 (PRH) Stock Fundamental Analysis
NYSE:PRH - New York Stock Exchange, Inc. - US7443208704 - Currency: USD
We assign a fundamental rating of 3 out of 10 to PRH. PRH was compared to 143 industry peers in the Insurance industry. PRH may be in some trouble as it scores bad on both profitability and health. PRH has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year PRH was profitable.
In the past year PRH had a positive cash flow from operations.
In multiple years PRH reported negative net income over the last 5 years.
Each year in the past 5 years PRH had a positive operating cash flow.
1.2 Ratios
PRH's Return On Assets of 0.31% is on the low side compared to the rest of the industry. PRH is outperformed by 76.22% of its industry peers.
Looking at the Return On Equity, with a value of 7.59%, PRH is doing worse than 60.14% of the companies in the same industry.
PRH has a worse Return On Invested Capital (0.31%) than 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.31% | ||
| ROE | 7.59% | ||
| ROIC | 0.31% |
ROA(3y)0.15%
ROA(5y)0.27%
ROE(3y)4.35%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PRH (3.96%) is worse than 69.93% of its industry peers.
PRH's Profit Margin has declined in the last couple of years.
PRH has a Operating Margin of 4.78%. This is in the lower half of the industry: PRH underperforms 77.62% of its industry peers.
PRH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.78% | ||
| PM (TTM) | 3.96% | ||
| GM | N/A |
OM growth 3Y-33.92%
OM growth 5Y-10.21%
PM growth 3Y-30.9%
PM growth 5Y-8.56%
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), PRH is destroying value.
The number of shares outstanding for PRH has been reduced compared to 1 year ago.
PRH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRH is higher compared to a year ago.
2.2 Solvency
PRH has a debt to FCF ratio of 28.89. This is a negative value and a sign of low solvency as PRH would need 28.89 years to pay back of all of its debts.
PRH has a Debt to FCF ratio of 28.89. This is in the lower half of the industry: PRH underperforms 76.22% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that PRH is somewhat dependend on debt financing.
PRH has a worse Debt to Equity ratio (0.72) than 83.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 28.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC9.51%
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 8.61% over the past year.
PRH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
Looking at the last year, PRH shows a decrease in Revenue. The Revenue has decreased by -0.67% in the last year.
Measured over the past years, PRH shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
EPS 1Y (TTM)8.61%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.45%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-38.19%
3.2 Future
PRH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.51% yearly.
The Revenue is expected to decrease by -1.53% on average over the next years.
EPS Next Y7.4%
EPS Next 2Y7.5%
EPS Next 3Y7.48%
EPS Next 5Y-0.51%
Revenue Next Year-16.33%
Revenue Next 2Y-7.48%
Revenue Next 3Y-3.42%
Revenue Next 5Y-1.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PRH is valuated cheaply with a Price/Earnings ratio of 1.86.
Based on the Price/Earnings ratio, PRH is valued cheaply inside the industry as 88.11% of the companies are valued more expensively.
PRH is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 1.63, the valuation of PRH can be described as very cheap.
Based on the Price/Forward Earnings ratio, PRH is valued cheaper than 90.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRH to the average of the S&P500 Index (20.81), we can say PRH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 1.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRH is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.13 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
PRH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.25
PEG (5Y)0.9
EPS Next 2Y7.5%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
PRH has a Yearly Dividend Yield of 5.31%, which is a nice return.
PRH's Dividend Yield is rather good when compared to the industry average which is at 3.25. PRH pays more dividend than 86.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PRH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
5.2 History
The dividend of PRH has a limited annual growth rate of 5.51%.
PRH has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)5.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PRH pays out 83.73% of its income as dividend. This is not a sustainable payout ratio.
PRH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP83.73%
EPS Next 2Y7.5%
EPS Next 3Y7.48%
PRUDENTIAL FINANCIAL INC - PRU 5.95 09/01/62
NYSE:PRH (5/2/2025, 8:18:02 PM)
24.34
+0.06 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.12%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap8.63B
Analysts67.62
Price Target28.12 (15.53%)
Short Float %0.01%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP83.73%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.43%
Min EPS beat(2)-9.72%
Max EPS beat(2)0.86%
EPS beat(4)1
Avg EPS beat(4)-3.14%
Min EPS beat(4)-9.72%
Max EPS beat(4)0.86%
EPS beat(8)2
Avg EPS beat(8)-1.3%
EPS beat(12)3
Avg EPS beat(12)-3.88%
EPS beat(16)7
Avg EPS beat(16)3.8%
Revenue beat(2)0
Avg Revenue beat(2)-10.48%
Min Revenue beat(2)-12.43%
Max Revenue beat(2)-8.53%
Revenue beat(4)2
Avg Revenue beat(4)2.46%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)29.51%
Revenue beat(8)3
Avg Revenue beat(8)4.2%
Revenue beat(12)5
Avg Revenue beat(12)5.65%
Revenue beat(16)8
Avg Revenue beat(16)9.13%
PT rev (1m)-4.35%
PT rev (3m)-2.55%
EPS NQ rev (1m)-4.19%
EPS NQ rev (3m)-4.9%
EPS NY rev (1m)-3.29%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)-3.41%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-2.89%
Revenue NY rev (3m)-4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 1.63 | ||
| P/S | 0.15 | ||
| P/FCF | 11.13 | ||
| P/OCF | 11.13 | ||
| P/B | 0.29 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)13.12
EY53.9%
EPS(NY)14.96
Fwd EY61.48%
FCF(TTM)2.19
FCFY8.98%
OCF(TTM)2.19
OCFY8.98%
SpS161.65
BVpS84.31
TBVpS84.31
PEG (NY)0.25
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.31% | ||
| ROE | 7.59% | ||
| ROCE | 0.37% | ||
| ROIC | 0.31% | ||
| ROICexc | 0.31% | ||
| ROICexgc | 0.48% | ||
| OM | 4.78% | ||
| PM (TTM) | 3.96% | ||
| GM | N/A | ||
| FCFM | 1.35% |
ROA(3y)0.15%
ROA(5y)0.27%
ROE(3y)4.35%
ROE(5y)5.32%
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 3Y-28.02%
ROICexcg growth 5Y-7.81%
ROICexc growth 3Y-30.1%
ROICexc growth 5Y-6.51%
OM growth 3Y-33.92%
OM growth 5Y-10.21%
PM growth 3Y-30.9%
PM growth 5Y-8.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 28.89 | ||
| Debt/EBITDA | 6.89 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.82% | ||
| Profit Quality | 34.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC9.51%
ROIC/WACC0.03
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)8.61%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.45%
EPS Next Y7.4%
EPS Next 2Y7.5%
EPS Next 3Y7.48%
EPS Next 5Y-0.51%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-38.19%
Revenue Next Year-16.33%
Revenue Next 2Y-7.48%
Revenue Next 3Y-3.42%
Revenue Next 5Y-1.53%
EBIT growth 1Y-1.9%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-87.37%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y-87.37%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%