DB:PLL

Stock Analysis Report

Prudential Financial

Executive Summary

Prudential Financial, Inc., through its subsidiaries, provides insurance, investment management, and other financial products and services.

Snowflake

Fundamentals

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

How has Prudential Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

PLL

2.6%

DE Insurance

1.7%

DE Market


1 Year Return

-6.8%

PLL

23.6%

DE Insurance

7.2%

DE Market

Return vs Industry: PLL underperformed the German Insurance industry which returned 23.6% over the past year.

Return vs Market: PLL underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

PLLIndustryMarket
7 Day0.6%2.6%1.7%
30 Day0.6%3.9%2.4%
90 Day-10.2%3.9%2.3%
1 Year-2.8%-6.8%29.0%23.6%10.6%7.2%
3 Year17.5%6.0%69.7%49.2%18.4%8.1%
5 Year43.4%21.2%119.2%75.5%42.3%22.9%

Price Volatility Vs. Market

How volatile is Prudential Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Prudential Financial 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: PLL (€81) is trading below our estimate of fair value (€223.13)

Significantly Below Fair Value: PLL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PLL is good value based on its PE Ratio (9.1x) compared to the Insurance industry average (13.4x).

PE vs Market: PLL is good value based on its PE Ratio (9.1x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: PLL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PLL is good value based on its PB Ratio (0.6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Prudential Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLL's forecast earnings growth (12.6% per year) is above the savings rate (0.2%).

Earnings vs Market: PLL's earnings (12.6% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: PLL's earnings are forecast to grow, but not significantly.

Revenue vs Market: PLL's revenue (1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: PLL's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLL's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Prudential Financial performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PLL's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: PLL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PLL had negative earnings growth (-45.1%) over the past year, making it difficult to compare to the Insurance industry average (15.2%).


Return on Equity

High ROE: PLL's Return on Equity (6.8%) is considered low.


Return on Assets

ROA vs Industry: PLL's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: PLL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Prudential Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PLL has a low level of unsold assets or inventory.

Debt Coverage by Assets: PLL's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: PLL's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if PLL has a sufficient allowance for bad loans.

Low Risk Liabilities: PLL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PLL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PLL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PLL has an appropriate level of bad loans.


Next Steps

Dividend

What is Prudential Financial's current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PLL's dividend (4.39%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: PLL's dividend (4.39%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: PLL's dividends per share have been stable in the past 10 years.

Growing Dividend: PLL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), PLL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PLL's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).


Next Steps

Management

What is the CEO of Prudential Financial's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Charlie Lowrey (61yo)

0.8yrs

Tenure

US$10,357,458

Compensation

Mr. Charles Frederick Lowrey, Jr., also known as Charlie, has been Chief Executive Officer, President and Director of Prudential Financial, Inc. since December 01, 2018 and Chairman of the Board since Apri ...


CEO Compensation Analysis

Compensation vs. Market: Charlie has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Charlie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.8yrs

Average Tenure

59yo

Average Age

Experienced Management: PLL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PLL's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: PLL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$189,54110 Sep 19
Kenneth Tanji
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,500
Max PriceUS$75.82
BuyUS$271,87610 Sep 19
Robert Falzon
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares3,580
Max PriceUS$75.94
BuyUS$567,53910 Sep 19
Charles Lowrey
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,500
Max PriceUS$75.67
SellUS$1,095,60418 Mar 19
Nicholas Silitch
EntityIndividual
Shares13,000
Max PriceUS$84.28
SellUS$545,43619 Feb 19
Stephen Pelletier
EntityIndividual
Role
Senior Key Executive
Executive VP & COO of U.S. Businesses
Shares6,532
Max PriceUS$83.50
BuyUS$18,37012 Dec 18
Sandra Pianalto
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$73.48

Ownership Breakdown


Management Team

  • Charlie Lowrey (61yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: US$10.36m
  • Steve Pelletier (65yo)

    Executive VP & COO of U.S. Businesses

    • Tenure: 5.5yrs
    • Compensation: US$18.53m
  • Lee Augsburger (59yo)

    Chief Ethics & Compliance Officer

    • Tenure: 0yrs
  • Ken Tanji (53yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$2.30m
  • Tim Harris (58yo)

    Executive VP & General Counsel

    • Tenure: 4yrs
  • Darin Arita

    Senior VP and Head of Investor Relations

    • Tenure: 0yrs
  • Scott Sleyster (59yo)

    Executive VP & COO of International Businesses

    • Tenure: 0yrs
    • Compensation: US$5.22m
  • Stacey Goodman (56yo)

    Chief Information Officer & Executive VP

    • Tenure: 0.3yrs
  • Timothy Schmidt (60yo)

    Senior VP & Chief Investment Officer

    • Tenure: 0.8yrs
  • Robert Axel

    Senior VP

    • Tenure: 5.6yrs

Board Members

  • Karl Krapek (70yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$335.00k
  • Chris Poon (67yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$322.50k
  • Doug Scovanner (63yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$335.00k
  • Gill Casellas (66yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$328.75k
  • Rob Falzon (59yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: US$8.11m
  • Charlie Lowrey (61yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: US$10.36m
  • Martina Therese Hund-Mejean (58yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$300.00k
  • Sandra Pianalto (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$308.75k
  • Tom Baltimore (56yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$405.00k
  • Peter Lighte (70yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$310.00k

Company Information

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


Key Information

  • Name: Prudential Financial, Inc.
  • Ticker: PLL
  • Exchange: DB
  • Founded: 1875
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$37.186b
  • Listing Market Cap: US$33.379b
  • Shares outstanding: 409.18m
  • Website: https://www.prudential.com

Number of Employees


Location

  • Prudential Financial, Inc.
  • 751 Broad Street
  • Newark
  • New Jersey
  • 7102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRUNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2001
PRU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2001
PLLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001
0KRXLSE (London Stock Exchange)YesCommon StockGBUSDDec 2001

Biography

Prudential Financial, Inc., through its subsidiaries, provides insurance, investment management, and other financial products and services. It operates through PGIM, U.S. Workplace Solutions, U.S. Individu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:11
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.