PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58 (PRS) Stock Fundamental Analysis
NYSE:PRS - New York Stock Exchange, Inc. - US7443208050 - Currency: USD
PRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and financial health of PRS have multiple concerns. PRS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PRS had positive earnings in the past year.
PRS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PRS reported negative net income in multiple years.
In the past 5 years PRS always reported a positive cash flow from operatings.
1.2 Ratios
PRS has a worse Return On Assets (0.31%) than 72.73% of its industry peers.
PRS has a Return On Equity of 7.59%. This is in the lower half of the industry: PRS underperforms 60.14% of its industry peers.
The Return On Invested Capital of PRS (0.31%) is worse than 65.73% 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
Looking at the Profit Margin, with a value of 3.96%, PRS is doing worse than 65.03% of the companies in the same industry.
In the last couple of years the Profit Margin of PRS has declined.
PRS's Operating Margin of 4.78% is on the low side compared to the rest of the industry. PRS is outperformed by 76.92% of its industry peers.
In the last couple of years the Operating Margin of PRS has declined.
| 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), PRS is destroying value.
PRS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRS has less shares outstanding
The debt/assets ratio for PRS is higher compared to a year ago.
2.2 Solvency
PRS has a debt to FCF ratio of 28.89. This is a negative value and a sign of low solvency as PRS would need 28.89 years to pay back of all of its debts.
PRS's Debt to FCF ratio of 28.89 is on the low side compared to the rest of the industry. PRS is outperformed by 79.02% of its industry peers.
PRS has a Debt/Equity ratio of 0.72. This is a neutral value indicating PRS is somewhat dependend on debt financing.
PRS has a worse Debt to Equity ratio (0.72) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 28.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC9.52%
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.
Measured over the past 5 years, PRS shows a small growth in Earnings Per Share. The EPS has been growing by 2.07% on average per year.
The Revenue has decreased by -0.67% in the past year.
The Revenue has been growing slightly by 0.36% on average over the past years.
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
PRS 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 Y6.49%
EPS Next 2Y7.25%
EPS Next 3Y7.14%
EPS Next 5Y-0.51%
Revenue Next Year-18.65%
Revenue Next 2Y-7.56%
Revenue Next 3Y-2.7%
Revenue Next 5Y-1.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 1.81, the valuation of PRS can be described as very cheap.
Based on the Price/Earnings ratio, PRS is valued cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, PRS is valued rather cheaply.
PRS is valuated cheaply with a Price/Forward Earnings ratio of 1.59.
Based on the Price/Forward Earnings ratio, PRS is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, PRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.81 | ||
| Fwd PE | 1.59 |
4.2 Price Multiples
PRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRS is cheaper than 81.82% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.83 | ||
| EV/EBITDA | 4.55 |
4.3 Compensation for Growth
PRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.28
PEG (5Y)0.87
EPS Next 2Y7.25%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.21%, PRS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.10, PRS pays a better dividend. On top of this PRS pays more dividend than 86.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, PRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
5.2 History
The dividend of PRS has a limited annual growth rate of 5.51%.
PRS has been paying a dividend for over 5 years, so it has already some track record.
PRS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.51%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
83.73% of the earnings are spent on dividend by PRS. This is not a sustainable payout ratio.
The Dividend Rate of PRS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP83.73%
EPS Next 2Y7.25%
EPS Next 3Y7.14%
PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58
NYSE:PRS (6/12/2025, 8:22:45 PM)
After market: 23.7 0 (0%)23.7
+0.04 (+0.17%)
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 Cap8.39B
Analysts66.67
Price Target25.45 (7.38%)
Short Float %0.02%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP83.73%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.67%
Min EPS beat(2)-9.72%
Max EPS beat(2)2.38%
EPS beat(4)1
Avg EPS beat(4)-2.76%
Min EPS beat(4)-9.72%
Max EPS beat(4)2.38%
EPS beat(8)2
Avg EPS beat(8)-1.11%
EPS beat(12)3
Avg EPS beat(12)-3.75%
EPS beat(16)7
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-9.7%
Min Revenue beat(2)-12.43%
Max Revenue beat(2)-6.96%
Revenue beat(4)2
Avg Revenue beat(4)2.85%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)29.51%
Revenue beat(8)3
Avg Revenue beat(8)4.39%
Revenue beat(12)5
Avg Revenue beat(12)5.78%
Revenue beat(16)8
Avg Revenue beat(16)9.23%
PT rev (1m)-0.14%
PT rev (3m)-3.62%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-5.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.81 | ||
| Fwd PE | 1.59 | ||
| P/S | 0.15 | ||
| P/FCF | 10.83 | ||
| P/OCF | 10.83 | ||
| P/B | 0.28 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | 4.55 |
EPS(TTM)13.12
EY55.36%
EPS(NY)14.9
Fwd EY62.85%
FCF(TTM)2.19
FCFY9.24%
OCF(TTM)2.19
OCFY9.24%
SpS161.84
BVpS84.42
TBVpS84.42
PEG (NY)0.28
PEG (5Y)0.87
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
WACC9.52%
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 Y6.49%
EPS Next 2Y7.25%
EPS Next 3Y7.14%
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-18.65%
Revenue Next 2Y-7.56%
Revenue Next 3Y-2.7%
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%