Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide.
No risks detected for PG4 from our risk checks.
6 star dividend payer and undervalued.
Share Price & News
How has Principal Financial Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PG4 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: PG4 underperformed the German Insurance industry which returned -4.3% over the past year.
Return vs Market: PG4 underperformed the German Market which returned 8.3% over the past year.
Price Volatility Vs. Market
How volatile is Principal Financial Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Principal Financial Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PG4 (€36.4) is trading below our estimate of fair value (€97.5)
Significantly Below Fair Value: PG4 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PG4 is good value based on its PE Ratio (9.4x) compared to the DE Insurance industry average (10.3x).
PE vs Market: PG4 is good value based on its PE Ratio (9.4x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: PG4 is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: PG4 is good value based on its PB Ratio (0.8x) compared to the DE Insurance industry average (0.9x).
How is Principal Financial Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PG4's forecast earnings growth (8.6% per year) is above the savings rate (0.2%).
Earnings vs Market: PG4's earnings (8.6% per year) are forecast to grow slower than the German market (23.2% per year).
High Growth Earnings: PG4's earnings are forecast to grow, but not significantly.
Revenue vs Market: PG4's revenue (4.2% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: PG4's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PG4's Return on Equity is forecast to be low in 3 years time (11%).
How has Principal Financial Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PG4 has high quality earnings.
Growing Profit Margin: PG4's current net profit margins (7.8%) are lower than last year (9.5%).
Past Earnings Growth Analysis
Earnings Trend: PG4's earnings have grown by 4.7% per year over the past 5 years.
Accelerating Growth: PG4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PG4 had negative earnings growth (-16%) over the past year, making it difficult to compare to the Insurance industry average (10%).
Return on Equity
High ROE: PG4's Return on Equity (8.3%) is considered low.
How is Principal Financial Group's financial position?
Financial Position Analysis
Short Term Liabilities: PG4's short term assets ($7.4B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: PG4's short term assets ($7.4B) do not cover its long term liabilities ($253.0B).
Debt to Equity History and Analysis
Debt Level: PG4's debt to equity ratio (26.2%) is considered satisfactory.
Reducing Debt: PG4's debt to equity ratio has reduced from 38.6% to 26.2% over the past 5 years.
Debt Coverage: PG4's debt is well covered by operating cash flow (119.1%).
Interest Coverage: Insufficient data to determine if PG4's interest payments on its debt are well covered by EBIT.
What is Principal Financial Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PG4's dividend (5.18%) is higher than the bottom 25% of dividend payers in the German market (1.25%).
High Dividend: PG4's dividend (5.18%) is in the top 25% of dividend payers in the German market (3.82%)
Stability and Growth of Payments
Stable Dividend: PG4's dividends per share have been stable in the past 10 years.
Growing Dividend: PG4's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.5%), PG4's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PG4's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Houston (58 yo)
Mr. Daniel Joseph Houston, also known as Dan, has been Chairman of the Board at Greater Des Moines Partnership since January 2018. He has been the Chief Executive Officer of Principal Financial Group, Inc. ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD14.75M) is above average for companies of similar size in the German market ($USD5.27M).
Compensation vs Earnings: Dan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Executive VP & CFO||3.5yrs||US$4.69m||0.045% |
|President of Principal Global Asset Management Business||1.92yrs||US$6.18m||0.026% |
|President & CEO of Principal International||9.42yrs||US$3.05m||0.022% |
|CEO & President of Principal Global Investors||1.92yrs||US$5.03m||0.029% |
|Senior VP & Chief Information Officer||0.25yr||no data||no data|
|Vice President of Investor Relations||10.33yrs||no data||no data|
|Senior VP & Chief Compliance Officer||1.58yrs||no data||no data|
|Executive VP||0.42yr||no data||no data|
|Senior VP & Chief Marketing Officer||1.08yrs||no data||no data|
|Senior VP & Chief Human Resources Officer||2.17yrs||no data||no data|
|Executive VP & Chief Risk Officer||2.58yrs||no data||0.020% |
Experienced Management: PG4's management team is considered experienced (2 years average tenure).
|Independent Director||19.25yrs||US$297.46k||0.00041% |
|Independent Director||14.25yrs||US$269.96k||0.0036% |
|Independent Director||19.33yrs||US$287.61k||0.00096% |
|Independent Director||5.42yrs||US$282.46k||no data|
|Independent Director||19.33yrs||US$292.46k||0.00010% |
|Lead Independent Director||0.58yr||US$299.82k||no data|
|Independent Director||5yrs||US$269.96k||no data|
|Director||0.25yr||no data||no data|
|Independent Director||2.83yrs||US$269.96k||no data|
|Independent Director||0.92yr||US$186.01k||no data|
Experienced Board: PG4's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Principal Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Principal Financial Group, Inc.
- Ticker: PG4
- Exchange: DB
- Founded: 1879
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: US$11.796b
- Listing Market Cap: US$10.022b
- Shares outstanding: 274.52m
- Website: https://www.principal.com
Number of Employees
- Principal Financial Group, Inc.
- 711 High Street
- Des Moines
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PFG||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Oct 2001|
|PG4||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 2001|
|0KO5||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Oct 2001|
|P1FG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 COM||BR||BRL||Jan 2020|
Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Reti ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/04 22:19|
|End of Day Share Price||2020/08/04 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.