PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
NYSE:PRU - New York Stock Exchange, Inc. - US7443201022 - Common Stock - Currency: USD
Taking everything into account, PRU scores 3 out of 10 in our fundamental rating. PRU was compared to 143 industry peers in the Insurance industry. PRU may be in some trouble as it scores bad on both profitability and health. PRU has a valuation in line with the averages, but it does not seem to be growing. 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.
Each year in the past 5 years PRU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PRU (0.31%) is worse than 76.92% of its industry peers.
PRU's Return On Equity of 7.59% is on the low side compared to the rest of the industry. PRU is outperformed by 60.84% of its industry peers.
The Return On Invested Capital of PRU (0.31%) is worse than 67.13% 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
PRU has a Profit Margin of 3.96%. This is in the lower half of the industry: PRU underperforms 70.63% of its industry peers.
PRU's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.78%, PRU is not doing good in the industry: 78.32% of the companies in the same industry are doing better.
PRU'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRU is destroying value.
Compared to 1 year ago, PRU has less shares outstanding
The number of shares outstanding for PRU has been reduced compared to 5 years ago.
Compared to 1 year ago, PRU has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PRU is 28.89, which is on the high side as it means it would take PRU, 28.89 years of fcf income to pay off all of its debts.
PRU's Debt to FCF ratio of 28.89 is on the low side compared to the rest of the industry. PRU is outperformed by 76.92% of its industry peers.
PRU has a Debt/Equity ratio of 0.72. This is a neutral value indicating PRU is somewhat dependend on debt financing.
PRU has a Debt to Equity ratio of 0.72. This is amonst the worse of the industry: PRU underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 28.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.04
WACC8.54%
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 8.61% over the past year.
PRU 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, PRU 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
Based on estimates for the next years, PRU will show a decrease in Earnings Per Share. The EPS will decrease by -0.51% on average per year.
PRU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.53% yearly.
EPS Next Y7.4%
EPS Next 2Y7.5%
EPS Next 3Y7.48%
EPS Next 5Y-0.51%
Revenue Next Year-16.33%
Revenue Next 2Y-7.48%
Revenue Next 3Y-3.42%
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.
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
Based on the Price/Earnings ratio of 7.87, the valuation of PRU can be described as very cheap.
77.62% of the companies in the same industry are more expensive than PRU, based on the Price/Earnings ratio.
PRU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
A Price/Forward Earnings ratio of 6.90 indicates a rather cheap valuation of PRU.
Based on the Price/Forward Earnings ratio, PRU is valued a bit cheaper than the industry average as 77.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PRU to the average of the S&P500 Index (20.81), we can say PRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
PRU's Enterprise Value to EBITDA is on the same level as the industry average.
72.73% of the companies in the same industry are cheaper than PRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.2 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
PRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.06
PEG (5Y)3.8
EPS Next 2Y7.5%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.21%, PRU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.25, PRU pays a better dividend. On top of this PRU pays more dividend than 85.31% 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
83.73% of the earnings are spent on dividend by PRU. This is not a sustainable payout ratio.
PRU'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 2Y7.5%
EPS Next 3Y7.48%
NYSE:PRU (5/5/2025, 1:17:06 PM)
103.205
-0.42 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.12%
Inst Owner Change-0.37%
Ins Owners0.12%
Ins Owner Change6.9%
Market Cap36.58B
Analysts67.62
Price Target115.35 (11.77%)
Short Float %1.94%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP83.73%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.43%
Min EPS beat(2)-9.72%
Max EPS beat(2)0.86%
EPS beat(4)1
Avg EPS beat(4)-3.14%
Min EPS beat(4)-9.72%
Max EPS beat(4)0.86%
EPS beat(8)2
Avg EPS beat(8)-1.3%
EPS beat(12)3
Avg EPS beat(12)-3.88%
EPS beat(16)7
Avg EPS beat(16)3.8%
Revenue beat(2)0
Avg Revenue beat(2)-10.48%
Min Revenue beat(2)-12.43%
Max Revenue beat(2)-8.53%
Revenue beat(4)2
Avg Revenue beat(4)2.46%
Min Revenue beat(4)-12.43%
Max Revenue beat(4)29.51%
Revenue beat(8)3
Avg Revenue beat(8)4.2%
Revenue beat(12)5
Avg Revenue beat(12)5.65%
Revenue beat(16)8
Avg Revenue beat(16)9.13%
PT rev (1m)-9.89%
PT rev (3m)-11.31%
EPS NQ rev (1m)-4.19%
EPS NQ rev (3m)-4.9%
EPS NY rev (1m)-3.29%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)-3.41%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-2.89%
Revenue NY rev (3m)-4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 6.9 | ||
| P/S | 0.64 | ||
| P/FCF | 47.2 | ||
| P/OCF | 47.2 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)13.12
EY12.71%
EPS(NY)14.96
Fwd EY14.5%
FCF(TTM)2.19
FCFY2.12%
OCF(TTM)2.19
OCFY2.12%
SpS161.65
BVpS84.31
TBVpS84.31
PEG (NY)1.06
PEG (5Y)3.8
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
WACC8.54%
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)8.61%
EPS 3Y-4.48%
EPS 5Y2.07%
EPS Q2Q%5.45%
EPS Next Y7.4%
EPS Next 2Y7.5%
EPS Next 3Y7.48%
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-16.33%
Revenue Next 2Y-7.48%
Revenue Next 3Y-3.42%
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%