PRUDENTIAL PLC (PRU.DE) Stock Fundamental Analysis

Europe - Frankfurt Stock Exchange - FRA:PRU - GB0007099541 - Common Stock

13.6 EUR

-0.2 (-1.45%)

Last: 1/20/2026, 7:00:00 PM

Fundamental Rating

PRU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Insurance industry. PRU has only an average score on both its financial health and profitability. While showing a medium growth rate, PRU is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

In the past year PRU was profitable.
In the past year PRU had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PRU reported negative net income in multiple years.
PRU had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

PRU's Return On Assets of 1.73% is fine compared to the rest of the industry. PRU outperforms 64.58% of its industry peers.
With a decent Return On Equity value of 19.04%, PRU is doing good in the industry, outperforming 70.83% of the companies in the same industry.
PRU has a Return On Invested Capital of 1.59%. This is comparable to the rest of the industry: PRU outperforms 58.33% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.73%
ROE	19.04%
ROIC	1.59%

ROA(3y)0.54%

ROA(5y)0.2%

ROE(3y)5.53%

ROE(5y)2.96%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

PRU has a better Profit Margin (26.45%) than 95.83% of its industry peers.
In the last couple of years the Profit Margin of PRU has grown nicely.
With an excellent Operating Margin value of 28.82%, PRU belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Operating Margin of PRU has grown nicely.

		Industry Rank	Sector Rank
OM	28.82%
PM (TTM)	26.45%
GM	N/A

OM growth 3Y31.22%

OM growth 5Y57.97%

PM growth 3YN/A

PM growth 5Y87.31%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRU is destroying value.
PRU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRU has more shares outstanding
Compared to 1 year ago, PRU has an improved debt to assets ratio.

2.2 Solvency

PRU has an Altman-Z score of 0.26. This is a bad value and indicates that PRU is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PRU (0.26) is better than 85.42% of its industry peers.
PRU has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as PRU would need 2.56 years to pay back of all of its debts.
PRU has a Debt to FCF ratio (2.56) which is in line with its industry peers.
A Debt/Equity ratio of 0.29 indicates that PRU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, PRU belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.29
Debt/FCF	2.56
Altman-Z	0.26

ROIC/WACC0.19

WACC8.18%

2.3 Liquidity

PRU has a Current Ratio of 0.38. This is a bad value and indicates that PRU is not financially healthy enough and could expect problems in meeting its short term obligations.
PRU has a better Current ratio (0.38) than 75.00% of its industry peers.
A Quick Ratio of 0.38 indicates that PRU may have some problems paying its short term obligations.
PRU has a Quick ratio of 0.38. This is in the better half of the industry: PRU outperforms 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.38
Quick Ratio	0.38

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

PRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 305.80%, which is quite impressive.
PRU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.53% yearly.
The Revenue has grown by 24.74% in the past year. This is a very strong growth!
Measured over the past years, PRU shows a very negative growth in Revenue. The Revenue has been decreasing by -33.86% on average per year.

EPS 1Y (TTM)305.8%

EPS 3YN/A

EPS 5Y-12.53%

EPS Q2Q%12.33%

Revenue 1Y (TTM)24.74%

Revenue growth 3Y-23.5%

Revenue growth 5Y-33.86%

Sales Q2Q%22.88%

3.2 Future

PRU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.25% yearly.
Based on estimates for the next years, PRU will show a very strong growth in Revenue. The Revenue will grow by 23.28% on average per year.

EPS Next Y22.8%

EPS Next 2Y16.73%

EPS Next 3Y16.08%

EPS Next 5Y14.25%

Revenue Next Year-40.39%

Revenue Next 2Y-19.73%

Revenue Next 3Y-11.33%

Revenue Next 5Y23.28%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.89, which indicates a rather expensive current valuation of PRU.
Based on the Price/Earnings ratio, PRU is valued a bit more expensive than 68.75% of the companies in the same industry.
PRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
PRU is valuated correctly with a Price/Forward Earnings ratio of 13.08.
Based on the Price/Forward Earnings ratio, PRU is valued a bit more expensive than 64.58% of the companies in the same industry.
PRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	17.89
Fwd PE	13.08

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as PRU.

		Industry Rank	Sector Rank
P/FCF	9.7
EV/EBITDA	N/A

4.3 Compensation for Growth

PRU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRU's earnings are expected to grow with 16.08% in the coming years. This may justify a more expensive valuation.