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PRUDENTIAL FINANCIAL INC (PRU) Stock Fundamental Analysis

NYSE:PRU - New York Stock Exchange, Inc. - US7443201022 - Common Stock - Currency: USD

104.54  +2.62 (+2.57%)

After market: 104.54 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to PRU. PRU was compared to 143 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.


Dividend Valuation Growth Profitability Health

2

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.
In the past 5 years PRU always reported a positive cash flow from operatings.
PRU Yearly Net Income VS EBIT VS OCF VS FCFPRU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

1.2 Ratios

The Return On Assets of PRU (0.31%) is worse than 74.83% 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 62.94% of its industry peers.
PRU has a worse Return On Invested Capital (0.31%) than 66.43% of its industry peers.
Industry RankSector 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
PRU Yearly ROA, ROE, ROICPRU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

Looking at the Profit Margin, with a value of 3.96%, PRU is doing worse than 68.53% of the companies in the same industry.
In the last couple of years the Profit Margin of PRU has declined.
PRU has a worse Operating Margin (4.78%) than 77.62% of its industry peers.
PRU's Operating Margin has declined in the last couple of years.
Industry RankSector 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
PRU Yearly Profit, Operating, Gross MarginsPRU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1

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.
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.
PRU has a worse debt/assets ratio than last year.
PRU Yearly Shares OutstandingPRU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
PRU Yearly Total Debt VS Total AssetsPRU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B

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.
The Debt to FCF ratio of PRU (28.89) is worse than 81.82% 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.
With a Debt to Equity ratio value of 0.72, PRU is not doing good in the industry: 85.31% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 28.89
Altman-Z N/A
ROIC/WACC0.04
WACC8.63%
PRU Yearly LT Debt VS Equity VS FCFPRU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PRU Yearly Current Assets VS Current LiabilitesPRU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2

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.
Based on estimates for the next years, PRU will show a decrease in Revenue. The Revenue will decrease by -1.53% on average per year.
EPS Next Y6.49%
EPS Next 2Y7.25%
EPS Next 3Y7.14%
EPS Next 5Y-0.51%
Revenue Next Year-18.45%
Revenue Next 2Y-7.78%
Revenue Next 3Y-1.17%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PRU Yearly Revenue VS EstimatesPRU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
PRU Yearly EPS VS EstimatesPRU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.97, the valuation of PRU can be described as very cheap.
PRU's Price/Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 76.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. PRU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.02, the valuation of PRU can be described as very cheap.
72.73% of the companies in the same industry are more expensive than PRU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, PRU is valued rather cheaply.
Industry RankSector Rank
PE 7.97
Fwd PE 7.02
PRU Price Earnings VS Forward Price EarningsPRU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PRU.
Based on the Price/Free Cash Flow ratio, PRU is valued expensively inside the industry as 80.42% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF 47.75
EV/EBITDA 13.71
PRU Per share dataPRU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

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)1.23
PEG (5Y)3.85
EPS Next 2Y7.25%
EPS Next 3Y7.14%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.30%, PRU is a good candidate for dividend investing.
PRU's Dividend Yield is rather good when compared to the industry average which is at 3.23. PRU pays more dividend than 85.31% of the companies in the same industry.
PRU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 5.3%

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
PRU Yearly Dividends per sharePRU Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

83.73% of the earnings are spent on dividend by PRU. This is not a sustainable payout ratio.
The Dividend Rate of PRU has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP83.73%
EPS Next 2Y7.25%
EPS Next 3Y7.14%
PRU Yearly Income VS Free CF VS DividendPRU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B
PRU Dividend Payout.PRU Dividend Payout, showing the Payout Ratio.PRU Dividend Payout.PayoutRetained Earnings

PRUDENTIAL FINANCIAL INC

NYSE:PRU (5/27/2025, 8:04:00 PM)

After market: 104.54 0 (0%)

104.54

+2.62 (+2.57%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners61.12%
Inst Owner Change-0.09%
Ins Owners0.12%
Ins Owner Change7.23%
Market Cap37.01B
Analysts67.62
Price Target115.52 (10.5%)
Short Float %1.91%
Short Ratio3.38
Dividend
Industry RankSector Rank
Dividend Yield 5.3%
Yearly Dividend5.3
Dividend Growth(5Y)5.51%
DP83.73%
Div Incr Years16
Div Non Decr Years16
Ex-Date05-20 2025-05-20 (1.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.67%
Min EPS beat(2)-9.72%
Max EPS beat(2)2.38%
EPS beat(4)1
Avg EPS beat(4)-2.76%
Min EPS beat(4)-9.72%
Max EPS beat(4)2.38%
EPS beat(8)2
Avg EPS beat(8)-1.11%
EPS beat(12)3
Avg EPS beat(12)-3.75%
EPS beat(16)7
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-9.7%
Min Revenue beat(2)-12.43%
Max Revenue beat(2)-6.96%
Revenue beat(4)2
Avg Revenue beat(4)2.85%
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)5.78%
Revenue beat(16)8
Avg Revenue beat(16)9.23%
PT rev (1m)-9.76%
PT rev (3m)-10.36%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-5.46%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-2.53%
Revenue NY rev (3m)-5.66%
Valuation
Industry RankSector Rank
PE 7.97
Fwd PE 7.02
P/S 0.65
P/FCF 47.75
P/OCF 47.75
P/B 1.24
P/tB 1.24
EV/EBITDA 13.71
EPS(TTM)13.12
EY12.55%
EPS(NY)14.9
Fwd EY14.25%
FCF(TTM)2.19
FCFY2.09%
OCF(TTM)2.19
OCFY2.09%
SpS161.84
BVpS84.42
TBVpS84.42
PEG (NY)1.23
PEG (5Y)3.85
Profitability
Industry RankSector 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 RankSector 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
WACC8.63%
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 Y6.49%
EPS Next 2Y7.25%
EPS Next 3Y7.14%
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-18.45%
Revenue Next 2Y-7.78%
Revenue Next 3Y-1.17%
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%