PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - NYSE:PRU - US7443201022 - Common Stock
106.74 USD
-0.26 (-0.24%)
106.74 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PRU. PRU was compared to 146 industry peers in the Insurance industry. PRU has a bad profitability rating. Also its financial health evaluation is rather negative. PRU has a bad growth rate and is valued cheaply. Finally PRU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PRU was profitable.
PRU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PRU reported negative net income in multiple years.
In the past 5 years PRU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PRU (0.33%) is worse than 77.40% of its industry peers.
The Return On Equity of PRU (8.05%) is worse than 63.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.35%, PRU is doing worse than 71.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROIC | 0.35% |
ROA(3y)0.15%
ROA(5y)0.27%
ROE(3y)4.35%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PRU's Profit Margin of 4.83% is on the low side compared to the rest of the industry. PRU is outperformed by 66.44% of its industry peers.
PRU's Profit Margin has declined in the last couple of years.
The Operating Margin of PRU (6.15%) is worse than 71.92% of its industry peers.
PRU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | 4.83% | ||
| 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
PRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PRU has less shares outstanding than it did 1 year ago.
PRU has less shares outstanding than it did 5 years ago.
PRU has a worse debt/assets ratio than last year.
2.2 Solvency
PRU has a debt to FCF ratio of 4.18. This is a neutral value as PRU would need 4.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, PRU is in line with its industry, outperforming 42.47% of the companies in the same industry.
PRU has a Debt/Equity ratio of 0.67. This is a neutral value indicating PRU is somewhat dependend on debt financing.
PRU has a Debt to Equity ratio of 0.67. This is amonst the worse of the industry: PRU underperforms 84.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.04
WACC8.39%
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 12.09% over the past year.
The Earnings Per Share has been growing slightly by 2.07% on average over the past years.
Looking at the last year, PRU shows a very negative growth in Revenue. The Revenue has decreased by -24.65% in the last year.
Measured over the past years, PRU shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
EPS 1Y (TTM)12.09%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%22.41%
Revenue 1Y (TTM)-24.65%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-16.64%
3.2 Future
PRU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.81% yearly.
Based on estimates for the next years, PRU will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y10.85%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
EPS Next 5Y0.81%
Revenue Next Year-18.67%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.12%
Revenue Next 5Y0.18%
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
With a Price/Earnings ratio of 7.58, the valuation of PRU can be described as very cheap.
Based on the Price/Earnings ratio, PRU is valued a bit cheaper than the industry average as 73.97% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PRU to the average of the S&P500 Index (26.28), we can say PRU is valued rather cheaply.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 7.10.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than 76.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRU to the average of the S&P500 Index (33.61), we can say PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
PRU's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PRU is valued a bit cheaper than the industry average as 65.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 11.74 |
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.
PEG (NY)0.7
PEG (5Y)3.66
EPS Next 2Y7.76%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.13%, PRU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, PRU pays a better dividend. On top of this PRU pays more dividend than 84.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
5.2 History
The dividend of PRU has a limited annual growth rate of 5.51%.
PRU has paid a dividend for at least 10 years, which is a reliable track record.
PRU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
74.23% of the earnings are spent on dividend by PRU. This is not a sustainable payout ratio.
PRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.23%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
106.74
-0.26 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.84%
Inst Owner Change-0.5%
Ins Owners0.12%
Ins Owner Change-0.13%
Market Cap37.57B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target119.11 (11.59%)
Short Float %1.64%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP74.23%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.29%
Min EPS beat(2)10.45%
Max EPS beat(2)14.14%
EPS beat(4)3
Avg EPS beat(4)4.31%
Min EPS beat(4)-9.72%
Max EPS beat(4)14.14%
EPS beat(8)3
Avg EPS beat(8)1.28%
EPS beat(12)4
Avg EPS beat(12)0.08%
EPS beat(16)7
Avg EPS beat(16)1.84%
Revenue beat(2)1
Avg Revenue beat(2)6.36%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)13.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)13.74%
Revenue beat(8)4
Avg Revenue beat(8)8.94%
Revenue beat(12)5
Avg Revenue beat(12)4.48%
Revenue beat(16)7
Avg Revenue beat(16)5.29%
PT rev (1m)1.76%
PT rev (3m)2.06%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)2.97%
EPS NY rev (3m)4.4%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 7.1 | ||
| P/S | 0.7 | ||
| P/FCF | 7.12 | ||
| P/OCF | 7.12 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)14.09
EY13.2%
EPS(NY)15.04
Fwd EY14.09%
FCF(TTM)14.98
FCFY14.04%
OCF(TTM)14.98
OCFY14.04%
SpS152.1
BVpS91.18
TBVpS91.18
PEG (NY)0.7
PEG (5Y)3.66
Graham Number170.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.05% | ||
| ROCE | 0.43% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.36% | ||
| ROICexgc | 0.55% | ||
| OM | 6.15% | ||
| PM (TTM) | 4.83% | ||
| GM | N/A | ||
| FCFM | 9.85% |
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
ROICexgc growth 3Y-28.02%
ROICexgc 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 6.11 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 149.7% | ||
| Profit Quality | 204.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.39%
ROIC/WACC0.04
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)12.09%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%22.41%
EPS Next Y10.85%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
EPS Next 5Y0.81%
Revenue 1Y (TTM)-24.65%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-16.64%
Revenue Next Year-18.67%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.12%
Revenue Next 5Y0.18%
EBIT growth 1Y-36.64%
EBIT growth 3Y-35.38%
EBIT growth 5Y-9.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.33%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y94.33%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%
PRUDENTIAL FINANCIAL INC / PRU FAQ
What is the fundamental rating for PRU stock?
ChartMill assigns a fundamental rating of 3 / 10 to PRU.
What is the valuation status for PRU stock?
ChartMill assigns a valuation rating of 7 / 10 to PRUDENTIAL FINANCIAL INC (PRU). This can be considered as Undervalued.
Can you provide the profitability details for PRUDENTIAL FINANCIAL INC?
PRUDENTIAL FINANCIAL INC (PRU) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for PRU stock?
The Price/Earnings (PE) ratio for PRUDENTIAL FINANCIAL INC (PRU) is 7.58 and the Price/Book (PB) ratio is 1.17.
Can you provide the financial health for PRU stock?
The financial health rating of PRUDENTIAL FINANCIAL INC (PRU) is 2 / 10.