PRUDENTIAL FINANCIAL INC (PRU)
US7443201022 - Common Stock
We assign a fundamental rating of 4 out of 10 to PRU. PRU was compared to 141 industry peers in the Insurance industry. Both the profitability and financial health of PRU have multiple concerns. PRU has a correct valuation and a medium growth rate. 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
The Return On Assets of PRU (0.54%) is worse than 63.31% of its industry peers.
The Return On Equity of PRU (14.03%) is better than 69.06% of its industry peers.
PRU has a Return On Invested Capital of 0.57%. This is comparable to the rest of the industry: PRU outperforms 44.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 14.03% | ||
| ROIC | 0.57% |
ROA(3y)0.34%
ROA(5y)0.29%
ROE(3y)5.83%
ROE(5y)4.69%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PRU (5.50%) is comparable to the rest of the industry.
PRU's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.18%, PRU perfoms like the industry average, outperforming 43.17% of the companies in the same industry.
In the last couple of years the Operating Margin of PRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.18% | ||
| PM (TTM) | 5.5% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-5.72%
PM growth 3YN/A
PM growth 5Y-6.47%
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.
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 an improved debt to assets ratio.
2.2 Solvency
PRU has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as PRU would need 3.21 years to pay back of all of its debts.
PRU has a Debt to FCF ratio of 3.21. This is comparable to the rest of the industry: PRU outperforms 45.32% of its industry peers.
PRU has a Debt/Equity ratio of 0.75. This is a neutral value indicating PRU is somewhat dependend on debt financing.
PRU's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. PRU is outperformed by 79.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.07
WACC8.11%
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 impressive 22.83% over the past year.
The Earnings Per Share has been decreasing by -0.10% on average over the past years.
The Revenue has grown by 18.27% in the past year. This is quite good.
PRU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.13% yearly.
EPS 1Y (TTM)22.83%
EPS 3Y4.07%
EPS 5Y-0.1%
EPS growth Q2Q6.61%
Revenue 1Y (TTM)18.27%
Revenue growth 3Y-1.82%
Revenue growth 5Y-3.13%
Revenue growth Q2Q13.12%
3.2 Future
The Earnings Per Share is expected to grow by 2.42% on average over the next years.
Based on estimates for the next years, PRU will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y17.59%
EPS Next 2Y12.43%
EPS Next 3Y10.67%
EPS Next 5Y2.42%
Revenue Next Year10.04%
Revenue Next 2Y5.78%
Revenue Next 3Y5.63%
Revenue Next 5Y5.75%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.70, the valuation of PRU can be described as reasonable.
PRU's Price/Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 64.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. PRU is valued rather cheaply when compared to this.
PRU is valuated reasonably with a Price/Forward Earnings ratio of 8.25.
PRU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRU is cheaper than 67.63% 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 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
63.31% of the companies in the same industry are more expensive than PRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y12.43%
EPS Next 3Y10.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.78%, PRU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.36, PRU pays a better dividend. On top of this PRU pays more dividend than 84.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PRU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
On average, the dividend of PRU grows each year by 6.90%, which is quite nice.
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)6.9%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
47.30% of the earnings are spent on dividend by PRU. This is a bit on the high side, but may be sustainable.
The dividend of PRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.3%
EPS Next 2Y12.43%
EPS Next 3Y10.67%
PRUDENTIAL FINANCIAL INC
NYSE:PRU (4/24/2024, 7:24:08 PM)
After market: 112.76 0 (0%)112.76
+0.71 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 8.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 14.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.18% | ||
| PM (TTM) | 5.5% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.83%
EPS 3Y4.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.27%
Revenue growth 3Y-1.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y