DB:PG4

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Principal Financial Group

Executive Summary

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

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.


Market Performance


7 Day Return

-6.2%

PG4

-1.7%

DE Insurance

-1.9%

DE Market


1 Year Return

-23.6%

PG4

-4.4%

DE Insurance

8.1%

DE Market

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.


Shareholder returns

PG4IndustryMarket
7 Day-6.2%-1.7%-1.9%
30 Day1.7%-2.4%-0.2%
90 Day11.0%10.0%12.8%
1 Year-20.1%-23.6%0.9%-4.4%10.5%8.1%
3 Year-27.5%-35.7%21.3%5.6%3.2%-5.0%
5 Year-14.0%-28.4%54.1%22.2%11.9%-3.2%

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

Valuation

Is Principal Financial Group undervalued compared to its fair value and its price relative to the market?

>50%

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).


Next Steps

Future Growth

How is Principal Financial Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.6%

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%).


Next Steps

Past Performance

How has Principal Financial Group performed over the past 5 years?

4.7%

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.


Next Steps

Financial Health

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.


Balance Sheet


Next Steps

Dividend

What is Principal Financial Group current dividend yield, its reliability and sustainability?

5.18%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Dan Houston (58 yo)

5yrs

Tenure

US$14,748,051

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Houston
Chairman5yrsUS$14.75m0.059%
$ 5.9m
Deanna Strable-Soethout
Executive VP & CFO3.5yrsUS$4.69m0.045%
$ 4.5m
Timothy Dunbar
President of Principal Global Asset Management Business1.92yrsUS$6.18m0.026%
$ 2.6m
Luis Valdés
President & CEO of Principal International9.42yrsUS$3.05m0.022%
$ 2.2m
Patrick Halter
CEO & President of Principal Global Investors1.92yrsUS$5.03m0.029%
$ 2.9m
Kathleen Kay
Senior VP & Chief Information Officer0.25yrno datano data
John Egan
Vice President of Investor Relations10.33yrsno datano data
Elizabeth Happe
Senior VP & Chief Compliance Officer1.58yrsno datano data
Christopher Littlefield
Executive VP0.42yrno datano data
Beth Wood
Senior VP & Chief Marketing Officer1.08yrsno datano data
Jon Couture
Senior VP & Chief Human Resources Officer2.17yrsno datano data
Julia Lawler
Executive VP & Chief Risk Officer2.58yrsno data0.020%
$ 2.0m

2.0yrs

Average Tenure

58yo

Average Age

Experienced Management: PG4's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Houston
Chairman5yrsUS$14.75m0.059%
$ 5.9m
Sandra Helton
Independent Director19.25yrsUS$297.46k0.00041%
$ 41.1k
Michael Dan
Independent Director14.25yrsUS$269.96k0.0036%
$ 364.8k
Elizabeth Tallett
Independent Director19.33yrsUS$287.61k0.00096%
$ 96.2k
Roger Hochschild
Independent Director5.42yrsUS$282.46kno data
Jocelyn Carter-Miller
Independent Director19.33yrsUS$292.46k0.00010%
$ 10.0k
Scott Mills
Lead Independent Director0.58yrUS$299.82kno data
Blair Chilton Pickerell
Independent Director5yrsUS$269.96kno data
Clare Richer
Director0.25yrno datano data
Diane Nordin
Independent Director2.83yrsUS$269.96kno data
Jonathan Auerbach
Independent Director0.92yrUS$186.01kno data

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: PG4's board of directors are considered experienced (5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Principal Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Principal Financial Group, Inc.
  • 711 High Street
  • Des Moines
  • Iowa
  • 50392
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2001
PG4DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2001
0KO5LSE (London Stock Exchange)YesCommon StockGBUSDOct 2001
P1FG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 22:19
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.