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 143 industry peers in the Insurance industry. PRS has a bad profitability rating. Also its financial health evaluation is rather negative. PRS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PRS was profitable.
In the past year PRS had a positive cash flow from operations.
In multiple years PRS reported negative net income over the last 5 years.
Each year in the past 5 years PRS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PRS (0.31%) is worse than 75.52% of its industry peers.
The Return On Equity of PRS (7.59%) is worse than 61.54% of its industry peers.
PRS has a worse Return On Invested Capital (0.31%) 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 69.23% of the companies in the same industry.
PRS's Profit Margin has declined in the last couple of years.
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.
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
Compared to 5 years ago, PRS has less shares outstanding
Compared to 1 year ago, PRS has a worse debt to assets ratio.
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 79.72% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that PRS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, PRS is not doing good in the industry: 83.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 28.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC9.57%
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.
PRS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
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.
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-18.45%
Revenue Next 2Y-7.78%
Revenue Next 3Y-1.17%
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.
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
With a Price/Earnings ratio of 1.73, the valuation of PRS can be described as very cheap.
Based on the Price/Earnings ratio, PRS is valued cheaper than 90.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. PRS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 1.52 indicates a rather cheap valuation of PRS.
Based on the Price/Forward Earnings ratio, PRS is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
PRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.73 | ||
| Fwd PE | 1.52 |
4.2 Price Multiples
81.12% of the companies in the same industry are more expensive than PRS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.36 | ||
| EV/EBITDA | 4.47 |
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)0.27
PEG (5Y)0.83
EPS Next 2Y7.25%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
PRS has a Yearly Dividend Yield of 5.05%, which is a nice return.
Compared to an average industry Dividend Yield of 3.17, PRS pays a better dividend. On top of this PRS pays more dividend than 86.71% of the companies listed in the same industry.
PRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
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 Years3
5.3 Sustainability
83.73% of the earnings are spent on dividend by PRS. This is not a sustainable payout ratio.
PRS'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 2Y7.25%
EPS Next 3Y7.14%
PRUDENTIAL FINANCIAL INC - PRU 5 5/8 08/15/58
NYSE:PRS (5/21/2025, 8:04:00 PM)
22.65
-0.37 (-1.61%)
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 Cap8.03B
Analysts67.62
Price Target25.48 (12.49%)
Short Float %0.01%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP83.73%
Div Incr Years0
Div Non Decr Years3
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)-4.17%
PT rev (3m)-6.35%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-3.7%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.73 | ||
| Fwd PE | 1.52 | ||
| P/S | 0.14 | ||
| P/FCF | 10.36 | ||
| P/OCF | 10.36 | ||
| P/B | 0.27 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | 4.47 |
EPS(TTM)13.12
EY57.92%
EPS(NY)14.9
Fwd EY65.77%
FCF(TTM)2.19
FCFY9.65%
OCF(TTM)2.19
OCFY9.65%
SpS161.65
BVpS84.31
TBVpS84.31
PEG (NY)0.27
PEG (5Y)0.83
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
WACC9.57%
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-18.45%
Revenue Next 2Y-7.78%
Revenue Next 3Y-1.17%
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%