PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - NYSE:PRU - US7443201022 - Common Stock
103.7 USD
+2.45 (+2.42%)
103.7 USD
0 (0%)
PRU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. Both the profitability and financial health of PRU have multiple concerns. PRU has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally PRU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PRU had positive earnings in the past year.
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.
Each year in the past 5 years PRU had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.21%, PRU is doing worse than 84.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.27%, PRU is doing worse than 72.41% of the companies in the same industry.
PRU's Return On Invested Capital of 0.22% is on the low side compared to the rest of the industry. PRU is outperformed by 70.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.27% | ||
| ROIC | 0.22% |
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 2.92%, PRU is not doing good in the industry: 74.48% of the companies in the same industry are doing better.
PRU's Profit Margin has declined in the last couple of years.
PRU has a worse Operating Margin (3.74%) than 82.07% of its industry peers.
PRU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 2.92% | ||
| 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), PRU is destroying value.
Compared to 1 year ago, PRU has less shares outstanding
Compared to 5 years ago, PRU has less shares outstanding
PRU has a worse debt/assets ratio than last year.
2.2 Solvency
PRU has a debt to FCF ratio of 10.46. This is a negative value and a sign of low solvency as PRU would need 10.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.46, PRU is doing worse than 68.28% of the companies in the same industry.
PRU has a Debt/Equity ratio of 0.68. This is a neutral value indicating PRU is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, PRU is not doing good in the industry: 85.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC8.33%
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 been growing slightly by 6.23% over the past year.
The Earnings Per Share has been growing slightly by 2.07% on average over the past years.
PRU shows a decrease in Revenue. In the last year, the revenue decreased by -9.43%.
The Revenue has been growing slightly by 0.36% on average over the past years.
EPS 1Y (TTM)6.23%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.6%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-2.42%
3.2 Future
The Earnings Per Share is expected to grow by 0.81% on average over the next years.
PRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.18% yearly.
EPS Next Y7.64%
EPS Next 2Y7.35%
EPS Next 3Y7.34%
EPS Next 5Y0.81%
Revenue Next Year-18.5%
Revenue Next 2Y-7.51%
Revenue Next 3Y-3.69%
Revenue Next 5Y0.18%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
PRU is valuated cheaply with a Price/Earnings ratio of 7.79.
Compared to the rest of the industry, the Price/Earnings ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 73.79% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, PRU is valued rather cheaply.
PRU is valuated cheaply with a Price/Forward Earnings ratio of 6.95.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than 76.55% of the companies in the same industry.
PRU is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRU is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
PRU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 16.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.02
PEG (5Y)3.77
EPS Next 2Y7.35%
EPS Next 3Y7.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.27%, PRU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.54, PRU pays a better dividend. On top of this PRU pays more dividend than 81.38% of the companies listed in the same industry.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
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
PRU pays out 118.44% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP118.44%
EPS Next 2Y7.35%
EPS Next 3Y7.34%
103.7
+2.45 (+2.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.84%
Inst Owner Change0.01%
Ins Owners0.12%
Ins Owner Change-0.13%
Market Cap36.50B
Analysts66.67
Price Target117.05 (12.87%)
Short Float %1.74%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP118.44%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.42%
Min EPS beat(2)2.38%
Max EPS beat(2)10.45%
EPS beat(4)2
Avg EPS beat(4)0.53%
Min EPS beat(4)-9.72%
Max EPS beat(4)10.45%
EPS beat(8)3
Avg EPS beat(8)0.61%
EPS beat(12)4
Avg EPS beat(12)-0.71%
EPS beat(16)7
Avg EPS beat(16)3.25%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-6.96%
Max Revenue beat(2)-1.02%
Revenue beat(4)1
Avg Revenue beat(4)2.27%
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)6.37%
Revenue beat(16)7
Avg Revenue beat(16)8.23%
PT rev (1m)0%
PT rev (3m)1.85%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.11%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.95 | ||
| P/S | 0.66 | ||
| P/FCF | 17.52 | ||
| P/OCF | 17.52 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)13.31
EY12.84%
EPS(NY)14.92
Fwd EY14.39%
FCF(TTM)5.92
FCFY5.71%
OCF(TTM)5.92
OCFY5.71%
SpS156.68
BVpS86.88
TBVpS86.88
PEG (NY)1.02
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.27% | ||
| ROCE | 0.27% | ||
| ROIC | 0.22% | ||
| ROICexc | 0.23% | ||
| ROICexgc | 0.35% | ||
| OM | 3.74% | ||
| PM (TTM) | 2.92% | ||
| GM | N/A | ||
| FCFM | 3.78% |
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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 10.46 | ||
| Debt/EBITDA | 8.73 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.9% | ||
| Profit Quality | 129.3% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.33%
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)6.23%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.6%
EPS Next Y7.64%
EPS Next 2Y7.35%
EPS Next 3Y7.34%
EPS Next 5Y0.81%
Revenue 1Y (TTM)-9.43%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.36%
Sales Q2Q%-2.42%
Revenue Next Year-18.5%
Revenue Next 2Y-7.51%
Revenue Next 3Y-3.69%
Revenue Next 5Y0.18%
EBIT growth 1Y-42.44%
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-49.83%
FCF growth 3Y-4.66%
FCF growth 5Y-15.41%
OCF growth 1Y-49.83%
OCF growth 3Y-4.66%
OCF growth 5Y-15.41%