PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
NYSE:PRU - US7443201022 - Common Stock
107.41 USD
-2.25 (-2.05%)
107.41 USD
0 (0%)
PRU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. Both the profitability and financial health of PRU have multiple concerns. PRU is valued correctly, but it does not seem to be growing. 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.
In multiple years PRU reported negative net income over the last 5 years.
PRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRU has a Return On Assets of 0.21%. This is amonst the worse of the industry: PRU underperforms 81.51% of its industry peers.
With a Return On Equity value of 5.27%, PRU is not doing good in the industry: 72.60% of the companies in the same industry are doing better.
PRU has a worse Return On Invested Capital (0.22%) than 68.49% 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
The Profit Margin of PRU (2.92%) is worse than 73.29% of its industry peers.
In the last couple of years the Profit Margin of PRU has declined.
The Operating Margin of PRU (3.74%) is worse than 80.14% of its industry peers.
In the last couple of years the Operating Margin of PRU has declined.
| 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
PRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRU has been reduced compared to 1 year ago.
Compared to 5 years ago, PRU has less shares outstanding
The debt/assets ratio for PRU is higher compared to a year ago.
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.
PRU has a Debt to FCF ratio of 10.46. This is in the lower half of the industry: PRU underperforms 69.18% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that PRU is somewhat dependend on debt financing.
PRU's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. PRU is outperformed by 85.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC8.46%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PRU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
PRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.07% yearly.
Looking at the last year, PRU shows a decrease in Revenue. The Revenue has decreased by -9.43% in the last year.
PRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
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
Based on estimates for the next years, PRU will show a small growth in Earnings Per Share. The EPS will grow by 0.81% on average per year.
PRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.18% yearly.
EPS Next Y7.75%
EPS Next 2Y7.43%
EPS Next 3Y7.49%
EPS Next 5Y0.81%
Revenue Next Year-19.2%
Revenue Next 2Y-7.81%
Revenue Next 3Y-3.79%
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 reasonably with a Price/Earnings ratio of 8.07.
Based on the Price/Earnings ratio, PRU is valued a bit cheaper than 75.34% of the companies in the same industry.
PRU is valuated cheaply when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.19, which indicates a rather cheap valuation of PRU.
PRU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 73.97% of the companies in the same industry.
PRU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRU is valued a bit more expensive than 61.64% of the companies in the same industry.
PRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 17.7 |
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)1.04
PEG (5Y)3.9
EPS Next 2Y7.43%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.97%, PRU is a good candidate for dividend investing.
PRU's Dividend Yield is rather good when compared to the industry average which is at 3.24. PRU pays more dividend than 84.93% of the companies in the same industry.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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
118.44% 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.
DP118.44%
EPS Next 2Y7.43%
EPS Next 3Y7.49%
107.41
-2.25 (-2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.29%
Inst Owner Change-1.17%
Ins Owners0.12%
Ins Owner Change-0.25%
Market Cap37.81B
Analysts66.67
Price Target117.05 (8.97%)
Short Float %1.61%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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)0.36%
PT rev (3m)1.32%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-4.58%
EPS NY rev (1m)1.48%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-6.1%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.19 | ||
| P/S | 0.69 | ||
| P/FCF | 18.15 | ||
| P/OCF | 18.15 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 17.7 |
EPS(TTM)13.31
EY12.39%
EPS(NY)14.95
Fwd EY13.92%
FCF(TTM)5.92
FCFY5.51%
OCF(TTM)5.92
OCFY5.51%
SpS156.68
BVpS86.88
TBVpS86.88
PEG (NY)1.04
PEG (5Y)3.9
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
WACC8.46%
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 Y7.75%
EPS Next 2Y7.43%
EPS Next 3Y7.49%
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-19.2%
Revenue Next 2Y-7.81%
Revenue Next 3Y-3.79%
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%