PRUDENTIAL PLC-ADR (PUK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PUK - US74435K2042 - ADR
31.61 USD
-0.14 (-0.44%)
31.61 USD
0 (0%)
PUK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. PUK has an average financial health and profitability rating. PUK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- PUK had positive earnings in the past year.
- PUK had a positive operating cash flow in the past year.
- In multiple years PUK reported negative net income over the last 5 years.
- PUK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- PUK has a Return On Assets (1.73%) which is comparable to the rest of the industry.
- PUK's Return On Equity of 19.04% is amongst the best of the industry. PUK outperforms 83.89% of its industry peers.
- The Return On Invested Capital of PUK (1.59%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 19.04% | ||
| ROIC | 1.59% |
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
- With an excellent Profit Margin value of 26.45%, PUK belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
- PUK's Profit Margin has improved in the last couple of years.
- PUK has a Operating Margin of 28.82%. This is amongst the best in the industry. PUK outperforms 90.60% of its industry peers.
- In the last couple of years the Operating Margin of PUK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.82% | ||
| PM (TTM) | 26.45% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PUK is destroying value.
- The number of shares outstanding for PUK has been reduced compared to 1 year ago.
- The number of shares outstanding for PUK has been increased compared to 5 years ago.
- Compared to 1 year ago, PUK has an improved debt to assets ratio.
2.2 Solvency
- PUK has an Altman-Z score of 0.32. This is a bad value and indicates that PUK is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.32, PUK is in the better half of the industry, outperforming 70.47% of the companies in the same industry.
- The Debt to FCF ratio of PUK is 2.56, which is a good value as it means it would take PUK, 2.56 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PUK (2.56) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.29 indicates that PUK is not too dependend on debt financing.
- PUK's Debt to Equity ratio of 0.29 is in line compared to the rest of the industry. PUK outperforms 55.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.18
WACC8.76%
2.3 Liquidity
- PUK has a Current Ratio of 0.38. This is a bad value and indicates that PUK is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of PUK (0.38) is better than 71.14% of its industry peers.
- PUK has a Quick Ratio of 0.38. This is a bad value and indicates that PUK is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.38, PUK is in the better half of the industry, outperforming 71.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 305.80% over the past year.
- The earnings per share for PUK have been decreasing by -12.53% on average. This is quite bad
- Looking at the last year, PUK shows a very strong growth in Revenue. The Revenue has grown by 24.74%.
- Measured over the past years, PUK shows a very negative growth in Revenue. The Revenue has been decreasing by -33.86% on average per year.
EPS 1Y (TTM)305.8%
EPS 3YN/A
EPS 5Y-12.53%
EPS Q2Q%12.33%
Revenue 1Y (TTM)24.74%
Revenue growth 3Y-23.5%
Revenue growth 5Y-33.86%
Sales Q2Q%24.19%
3.2 Future
- The Earnings Per Share is expected to grow by 14.25% on average over the next years. This is quite good.
- PUK is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.28% yearly.
EPS Next Y22.8%
EPS Next 2Y16.73%
EPS Next 3Y16.08%
EPS Next 5Y14.25%
Revenue Next Year-40.39%
Revenue Next 2Y-19.73%
Revenue Next 3Y-11.33%
Revenue Next 5Y23.28%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.09, the valuation of PUK can be described as rather expensive.
- 63.09% of the companies in the same industry are cheaper than PUK, based on the Price/Earnings ratio.
- PUK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.51, PUK is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PUK is on the same level as its industry peers.
- PUK is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PUK indicates a slightly more expensive valuation: PUK is more expensive than 62.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.19 | ||
| 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.
- A more expensive valuation may be justified as PUK's earnings are expected to grow with 16.08% in the coming years.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y16.73%
EPS Next 3Y16.08%
5. Dividend
5.1 Amount
- PUK has a Yearly Dividend Yield of 3.14%.
- Compared to an average industry Dividend Yield of 2.41, PUK pays a bit more dividend than its industry peers.
- PUK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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
- 17.05% of the earnings are spent on dividend by PUK. This is a low number and sustainable payout ratio.
DP17.05%
EPS Next 2Y16.73%
EPS Next 3Y16.08%
PRUDENTIAL PLC-ADR / PUK FAQ
What is the ChartMill fundamental rating of PRUDENTIAL PLC-ADR (PUK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PUK.
Can you provide the valuation status for PRUDENTIAL PLC-ADR?
ChartMill assigns a valuation rating of 3 / 10 to PRUDENTIAL PLC-ADR (PUK). This can be considered as Overvalued.
How profitable is PRUDENTIAL PLC-ADR (PUK) stock?
PRUDENTIAL PLC-ADR (PUK) has a profitability rating of 5 / 10.
What are the PE and PB ratios of PRUDENTIAL PLC-ADR (PUK) stock?
The Price/Earnings (PE) ratio for PRUDENTIAL PLC-ADR (PUK) is 17.09 and the Price/Book (PB) ratio is 2.21.
Can you provide the dividend sustainability for PUK stock?
The dividend rating of PRUDENTIAL PLC-ADR (PUK) is 5 / 10 and the dividend payout ratio is 17.05%.