PRUDENTIAL PLC-ADR (PUK) Stock Fundamental Analysis
USA - NYSE:PUK - US74435K2042 - ADR
27.48 USD
-0.64 (-2.28%)
27.23 USD
-0.25 (-0.91%)
We assign a fundamental rating of 5 out of 10 to PUK. PUK was compared to 146 industry peers in the Insurance industry. PUK has an average financial health and profitability rating. PUK has a correct valuation and a medium 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 (1.26%) which is comparable to the rest of the industry.
The Return On Equity of PUK (13.06%) is better than 64.38% of its industry peers.
The Return On Invested Capital of PUK (1.24%) 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 90.41% of its industry peers.
In the last couple of years the Profit Margin of PUK has grown nicely.
PUK has a better Operating Margin (22.91%) than 87.67% of its industry peers.
PUK's Operating Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, PUK has less shares outstanding
PUK has more shares outstanding than it did 5 years ago.
PUK has a better debt/assets ratio than last year.
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.
The Altman-Z score of PUK (0.32) is better than 69.18% 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.
Looking at the Debt to FCF ratio, with a value of 1.35, PUK is in line with its industry, outperforming 57.53% of the companies in the same industry.
PUK has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
PUK's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. PUK outperforms 57.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.14
WACC8.65%
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.
PUK has a Current ratio of 0.36. This is in the better half of the industry: PUK outperforms 71.23% of its industry peers.
A Quick Ratio of 0.36 indicates that PUK may have some problems paying its short term obligations.
PUK has a Quick ratio of 0.36. This is in the better half of the industry: PUK outperforms 71.23% 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 35.68%, which is quite impressive.
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 quite strong growth in Revenue. The Revenue has grown by 11.05% in the last year.
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)35.68%
EPS 3YN/A
EPS 5Y-12.53%
EPS Q2Q%12.33%
Revenue 1Y (TTM)11.05%
Revenue growth 3Y-23.5%
Revenue growth 5Y-33.86%
Sales Q2Q%24.19%
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 13.94% yearly.
PUK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.31% yearly.
EPS Next Y18.12%
EPS Next 2Y16.62%
EPS Next 3Y16.61%
EPS Next 5Y13.94%
Revenue Next Year-56.83%
Revenue Next 2Y-31.9%
Revenue Next 3Y-28.79%
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
PUK is valuated correctly with a Price/Earnings ratio of 14.54.
PUK's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PUK to the average of the S&P500 Index (27.86), we can say PUK is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.68 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 (23.29), we can say PUK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
PUK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| 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 16.61% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y16.62%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
PUK has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
PUK's Dividend Yield is comparable with the industry average which is at 3.60.
Compared to the average S&P500 Dividend Yield of 2.41, PUK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 2Y16.62%
EPS Next 3Y16.61%
27.48
-0.64 (-2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners65.08%
Inst Owner Change0.35%
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap35.10B
Analysts85.45
Price Target34.11 (24.13%)
Short Float %0.14%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)3.64%
PT rev (3m)5.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.59%
EPS NY rev (3m)2.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-61.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 10.68 | ||
| P/S | 2.96 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.73 | ||
| P/B | 2.01 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.89
EY6.88%
EPS(NY)2.57
Fwd EY9.36%
FCF(TTM)2.75
FCFY9.99%
OCF(TTM)2.83
OCFY10.28%
SpS9.29
BVpS13.69
TBVpS10.04
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 | 0.32 |
F-Score9
WACC8.65%
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)35.68%
EPS 3YN/A
EPS 5Y-12.53%
EPS Q2Q%12.33%
EPS Next Y18.12%
EPS Next 2Y16.62%
EPS Next 3Y16.61%
EPS Next 5Y13.94%
Revenue 1Y (TTM)11.05%
Revenue growth 3Y-23.5%
Revenue growth 5Y-33.86%
Sales Q2Q%24.19%
Revenue Next Year-56.83%
Revenue Next 2Y-31.9%
Revenue Next 3Y-28.79%
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