PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis
USA - NYSE:PRU - US7443201022 - Common Stock
106.29 USD
+1.09 (+1.04%)
106.29 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 has a bad growth rate and is valued cheaply. PRU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PRU had positive earnings in the past year.
In the past year PRU had a positive cash flow from operations.
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's Return On Assets of 0.33% is on the low side compared to the rest of the industry. PRU is outperformed by 78.08% of its industry peers.
The Return On Equity of PRU (8.05%) is worse than 63.70% of its industry peers.
PRU has a Return On Invested Capital of 0.35%. This is in the lower half of the industry: PRU underperforms 70.55% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 4.83%, PRU is doing worse than 67.12% of the companies in the same industry.
PRU's Profit Margin has declined in the last couple of years.
PRU has a Operating Margin of 6.15%. This is in the lower half of the industry: PRU underperforms 72.60% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRU 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
Compared to 1 year ago, PRU has a worse debt to assets ratio.
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.
PRU has a Debt to FCF ratio of 4.18. This is comparable to the rest of the industry: PRU outperforms 41.10% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that PRU is somewhat dependend on debt financing.
PRU's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. PRU is outperformed by 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
WACC8.38%
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.
Measured over the past 5 years, PRU shows a small growth in Earnings Per Share. The EPS has been growing by 2.07% on average per year.
The Revenue for PRU has decreased by -24.65% in the past year. This is quite bad
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
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 7.54.
Based on the Price/Earnings ratio, PRU is valued a bit cheaper than 73.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of PRU to the average of the S&P500 Index (26.06), we can say PRU is valued rather cheaply.
The Price/Forward Earnings ratio is 7.07, which indicates a rather cheap valuation of PRU.
Based on the Price/Forward 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/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
PRU's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRU indicates a somewhat cheap valuation: PRU is cheaper than 63.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.09 | ||
| EV/EBITDA | 11.67 |
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)3.65
EPS Next 2Y7.76%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
PRU has a Yearly Dividend Yield of 5.13%, which is a nice return.
Compared to an average industry Dividend Yield of 3.39, PRU pays a better dividend. On top of this PRU pays more dividend than 84.93% 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 2.36.
| 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 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
74.23% of the earnings are spent on dividend by PRU. 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.
DP74.23%
EPS Next 2Y7.76%
EPS Next 3Y7.38%
106.29
+1.09 (+1.04%)
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 Cap37.41B
Revenue(TTM)53.54B
Net Income(TTM)2.58B
Analysts66.67
Price Target119.11 (12.06%)
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 | 7.54 | ||
| Fwd PE | 7.07 | ||
| P/S | 0.7 | ||
| P/FCF | 7.09 | ||
| P/OCF | 7.09 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)14.09
EY13.26%
EPS(NY)15.04
Fwd EY14.15%
FCF(TTM)14.98
FCFY14.1%
OCF(TTM)14.98
OCFY14.1%
SpS152.1
BVpS91.18
TBVpS91.18
PEG (NY)0.7
PEG (5Y)3.65
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
WACC8.38%
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 7.54 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.