PRUDENTIAL PLC-ADR (PUK) Stock Fundamental Analysis
NYSE:PUK - New York Stock Exchange, Inc. - US74435K2042 - ADR - Currency: USD
Taking everything into account, PUK scores 5 out of 10 in our fundamental rating. PUK was compared to 141 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
PUK had positive earnings in the past year.
In the past year PUK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PUK reported negative net income in multiple years.
Of the past 5 years PUK 4 years had a positive operating cash flow.
1.2 Ratios
PUK has a Return On Assets (1.26%) which is in line with its industry peers.
The Return On Equity of PUK (13.06%) is better than 63.12% of its industry peers.
With a Return On Invested Capital value of 1.24%, PUK perfoms like the industry average, outperforming 41.84% of the companies in the same 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 has a better Profit Margin (19.26%) than 89.36% of its industry peers.
PUK's Profit Margin has improved in the last couple of years.
The Operating Margin of PUK (22.91%) is better than 87.23% 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
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.
PUK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PUK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.32, we must say that PUK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PUK (0.32) is better than 71.63% of its industry peers.
PUK has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
PUK has a Debt to FCF ratio (1.35) which is in line with 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.
The Debt to Equity ratio of PUK (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.14
WACC8.59%
2.3 Liquidity
PUK has a Current Ratio of 0.36. 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 Current ratio, with a value of 0.36, PUK is in the better half of the industry, outperforming 71.63% of the companies in the same industry.
PUK has a Quick Ratio of 0.36. 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 Quick ratio of PUK (0.36) is better than 71.63% of its industry peers.
| 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.
The Revenue has grown by 11.05% in the past year. This is quite good.
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)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 13.26% yearly.
The Revenue is expected to grow by 15.31% on average over the next years. This is quite good.
EPS Next Y16.31%
EPS Next 2Y16.27%
EPS Next 3Y16.34%
EPS Next 5Y13.26%
Revenue Next Year13.49%
Revenue Next 2Y13.33%
Revenue Next 3Y-3.07%
Revenue Next 5Y15.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 14.03, PUK is valued correctly.
PUK's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PUK to the average of the S&P500 Index (26.82), we can say PUK is valued slightly cheaper.
PUK is valuated correctly with a Price/Forward Earnings ratio of 12.07.
PUK's Price/Forward Earnings ratio is in line with the industry average.
PUK is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.24, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as PUK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| 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)0.86
PEG (5Y)N/A
EPS Next 2Y16.27%
EPS Next 3Y16.34%
5. Dividend
5.1 Amount
PUK has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.59, PUK has a dividend in line with its industry peers.
PUK's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of PUK decreases each year by -20.17%.
PUK has paid a dividend for at least 10 years, which is 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
PUK pays out 24.16% of its income as dividend. This is a sustainable payout ratio.
DP24.16%
EPS Next 2Y16.27%
EPS Next 3Y16.34%
26.51
-0.15 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners57.57%
Inst Owner Change0.25%
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap33.94B
Analysts84.55
Price Target31.8 (19.95%)
Short Float %0.1%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-2.06%
PT rev (3m)0.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.26%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 12.07 | ||
| P/S | 2.86 | ||
| P/FCF | 9.67 | ||
| P/OCF | 9.4 | ||
| P/B | 1.94 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.89
EY7.13%
EPS(NY)2.2
Fwd EY8.28%
FCF(TTM)2.74
FCFY10.34%
OCF(TTM)2.82
OCFY10.63%
SpS9.27
BVpS13.66
TBVpS10.01
PEG (NY)0.86
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 | 0.32 |
F-Score9
WACC8.59%
ROIC/WACC0.14
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 5Y13.26%
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 3Y-3.07%
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