PRUDENTIAL PLC-ADR (PUK) Stock Fundamental Analysis
NYSE:PUK - New York Stock Exchange, Inc. - US74435K2042 - ADR - Currency: USD
PUK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. PUK has an average financial health and profitability rating. PUK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PUK was profitable.
In the past year PUK had a positive cash flow from operations.
In multiple years PUK reported negative net income over the last 5 years.
Of the past 5 years PUK 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.26%, PUK perfoms like the industry average, outperforming 44.76% of the companies in the same industry.
With a decent Return On Equity value of 13.06%, PUK is doing good in the industry, outperforming 65.03% of the companies in the same industry.
PUK has a Return On Invested Capital (1.24%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 13.06% | ||
| ROIC | 1.24% |
ROA(3y)0.54%
ROA(5y)0.2%
ROE(3y)5.53%
ROE(5y)2.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PUK's Profit Margin of 19.26% is amongst the best of the industry. PUK outperforms 86.71% of its industry peers.
PUK's Profit Margin has improved in the last couple of years.
PUK has a better Operating Margin (22.91%) than 86.71% of its industry peers.
In the last couple of years the Operating Margin of PUK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.91% | ||
| PM (TTM) | 19.26% | ||
| GM | N/A |
OM growth 3Y31.22%
OM growth 5Y57.97%
PM growth 3YN/A
PM growth 5Y87.31%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PUK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PUK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PUK has more shares outstanding
The debt/assets ratio for PUK has been reduced compared to a year ago.
2.2 Solvency
PUK has an Altman-Z score of 0.30. This is a bad value and indicates that PUK is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.30, PUK is doing good in the industry, outperforming 71.33% of the companies in the same industry.
The Debt to FCF ratio of PUK is 1.35, which is an excellent value as it means it would take PUK, only 1.35 years of fcf income to pay off all of its debts.
PUK's Debt to FCF ratio of 1.35 is in line compared to the rest of the industry. PUK outperforms 52.45% of its industry peers.
PUK has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
PUK has a Debt to Equity ratio of 0.27. This is in the better half of the industry: PUK outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.15
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.36 indicates that PUK may have some problems paying its short term obligations.
PUK has a Current ratio of 0.36. This is in the better half of the industry: PUK outperforms 72.03% of its industry peers.
A Quick Ratio of 0.36 indicates that PUK may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.36, PUK is doing good in the industry, outperforming 72.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
PUK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.66%, which is quite impressive.
PUK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.53% yearly.
PUK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.05%.
PUK shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -33.86% yearly.
EPS 1Y (TTM)36.66%
EPS 3YN/A
EPS 5Y-12.53%
EPS Q2Q%192%
Revenue 1Y (TTM)11.05%
Revenue growth 3Y-23.5%
Revenue growth 5Y-33.86%
Sales Q2Q%26.54%
3.2 Future
PUK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.90% yearly.
Based on estimates for the next years, PUK will show a quite strong growth in Revenue. The Revenue will grow by 15.31% on average per year.
EPS Next Y16.31%
EPS Next 2Y16.27%
EPS Next 3Y16.34%
EPS Next 5Y13.9%
Revenue Next Year13.49%
Revenue Next 2Y13.33%
Revenue Next 3Y6.06%
Revenue Next 5Y15.31%
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
The Price/Earnings ratio is 13.10, which indicates a correct valuation of PUK.
The rest of the industry has a similar Price/Earnings ratio as PUK.
Compared to an average S&P500 Price/Earnings ratio of 26.57, PUK is valued rather cheaply.
A Price/Forward Earnings ratio of 11.25 indicates a reasonable valuation of PUK.
The rest of the industry has a similar Price/Forward Earnings ratio as PUK.
When comparing the Price/Forward Earnings ratio of PUK to the average of the S&P500 Index (22.41), we can say PUK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PUK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PUK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PUK's earnings are expected to grow with 16.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y16.27%
EPS Next 3Y16.34%
5. Dividend
5.1 Amount
PUK has a Yearly Dividend Yield of 1.96%.
Compared to an average industry Dividend Yield of 3.46, PUK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PUK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of PUK decreases each year by -20.17%.
PUK has been paying a dividend for at least 10 years, so it has a reliable track record.
PUK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-20.17%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
24.16% of the earnings are spent on dividend by PUK. This is a low number and sustainable payout ratio.
DP24.16%
EPS Next 2Y16.27%
EPS Next 3Y16.34%
24.5
+0.54 (+2.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners57.57%
Inst Owner Change14.29%
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap31.62B
Analysts83.48
Price Target31.74 (29.55%)
Short Float %0.09%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.2
Dividend Growth(5Y)-20.17%
DP24.16%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.08%
PT rev (3m)7.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.25 | ||
| P/S | 2.67 | ||
| P/FCF | 9.01 | ||
| P/OCF | 8.76 | ||
| P/B | 1.81 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.87
EY7.63%
EPS(NY)2.18
Fwd EY8.89%
FCF(TTM)2.72
FCFY11.09%
OCF(TTM)2.8
OCFY11.41%
SpS9.19
BVpS13.55
TBVpS9.93
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 13.06% | ||
| ROCE | 1.52% | ||
| ROIC | 1.24% | ||
| ROICexc | 1.28% | ||
| ROICexgc | 1.36% | ||
| OM | 22.91% | ||
| PM (TTM) | 19.26% | ||
| GM | N/A | ||
| FCFM | 29.57% |
ROA(3y)0.54%
ROA(5y)0.2%
ROE(3y)5.53%
ROE(5y)2.96%
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-3.09%
ROICexcg growth 5Y24.35%
ROICexc growth 3Y2.96%
ROICexc growth 5Y25.51%
OM growth 3Y31.22%
OM growth 5Y57.97%
PM growth 3YN/A
PM growth 5Y87.31%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 11.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 153.52% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.3 |
F-Score9
WACC8.54%
ROIC/WACC0.15
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.66%
EPS 3YN/A
EPS 5Y-12.53%
EPS Q2Q%192%
EPS Next Y16.31%
EPS Next 2Y16.27%
EPS Next 3Y16.34%
EPS Next 5Y13.9%
Revenue 1Y (TTM)11.05%
Revenue growth 3Y-23.5%
Revenue growth 5Y-33.86%
Sales Q2Q%26.54%
Revenue Next Year13.49%
Revenue Next 2Y13.33%
Revenue Next 3Y6.06%
Revenue Next 5Y15.31%
EBIT growth 1Y14.11%
EBIT growth 3Y0.38%
EBIT growth 5Y4.48%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y345.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y333.77%
OCF growth 3YN/A
OCF growth 5YN/A