PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58 (PRS) Stock Fundamental Analysis
NYSE:PRS - New York Stock Exchange, Inc. - US7443208050 - Currency: USD
We assign a fundamental rating of 3 out of 10 to PRS. PRS was compared to 145 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.
In the past year PRS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PRS reported negative net income in multiple years.
PRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PRS (0.31%) is worse than 72.41% of its industry peers.
PRS has a worse Return On Equity (7.59%) than 60.00% of its industry peers.
With a Return On Invested Capital value of 0.31%, PRS is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| 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
With a Profit Margin value of 3.96%, PRS is not doing good in the industry: 64.83% of the companies in the same industry are doing better.
PRS's Profit Margin has declined in the last couple of years.
PRS has a worse Operating Margin (4.78%) than 76.55% of its industry peers.
PRS'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), PRS is destroying value.
Compared to 1 year ago, PRS has less shares outstanding
The number of shares outstanding for PRS has been reduced compared to 5 years ago.
PRS has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PRS is 28.89, which is on the high side as it means it would take PRS, 28.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 28.89, PRS is doing worse than 77.24% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that PRS is somewhat dependend on debt financing.
PRS has a worse Debt to Equity ratio (0.72) than 84.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 28.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC9.11%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.61%, which is quite good.
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.
Measured over the past years, PRS 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
The Earnings Per Share is expected to decrease by -0.51% on average over the next years.
Based on estimates for the next years, PRS will show a decrease in Revenue. The Revenue will decrease by -1.53% on average per year.
EPS Next Y6.18%
EPS Next 2Y7.51%
EPS Next 3Y7.45%
EPS Next 5Y-0.51%
Revenue Next Year-17.87%
Revenue Next 2Y-7.24%
Revenue Next 3Y-3.27%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.85 indicates a rather cheap valuation of PRS.
PRS's Price/Earnings ratio is rather cheap when compared to the industry. PRS is cheaper than 90.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PRS is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.62, the valuation of PRS can be described as very cheap.
PRS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRS is cheaper than 91.03% of the companies in the same industry.
PRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.85 | ||
| Fwd PE | 1.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRS indicates a rather cheap valuation: PRS is cheaper than 81.38% of the companies listed in the same industry.
PRS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 4.61 |
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)0.3
PEG (5Y)0.89
EPS Next 2Y7.51%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
PRS has a Yearly Dividend Yield of 5.04%, which is a nice return.
PRS's Dividend Yield is a higher than the industry average which is at 3.67.
Compared to an average S&P500 Dividend Yield of 2.35, PRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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 2Y7.51%
EPS Next 3Y7.45%
PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58
NYSE:PRS (7/11/2025, 8:04:00 PM)
24.27
-0.07 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.13%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap8.59B
Analysts66.67
Price Target25.75 (6.1%)
Short Float %0.08%
Short Ratio7.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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)1.2%
PT rev (3m)-3.16%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)-5.77%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.85 | ||
| Fwd PE | 1.62 | ||
| P/S | 0.15 | ||
| P/FCF | 11.09 | ||
| P/OCF | 11.09 | ||
| P/B | 0.29 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)13.12
EY54.06%
EPS(NY)14.97
Fwd EY61.67%
FCF(TTM)2.19
FCFY9.02%
OCF(TTM)2.19
OCFY9.02%
SpS161.84
BVpS84.42
TBVpS84.42
PEG (NY)0.3
PEG (5Y)0.89
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
WACC9.11%
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 Y6.18%
EPS Next 2Y7.51%
EPS Next 3Y7.45%
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-17.87%
Revenue Next 2Y-7.24%
Revenue Next 3Y-3.27%
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%