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Principal Financial Group

LSE:0KO5
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0KO5
LSE
$15B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The last earnings update was 65 days ago. More info.


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0KO5 Share Price and Events
7 Day Returns
0%
LSE:0KO5
3.8%
GB Insurance
1.9%
GB Market
1 Year Returns
-13%
LSE:0KO5
-4.5%
GB Insurance
2.5%
GB Market
0KO5 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Principal Financial Group (0KO5) 0% 2.2% 10% -13% - -
GB Insurance 3.8% 3.5% 10.1% -4.5% 14.3% 23.7%
GB Market 1.9% 3% 7.9% 2.5% 15.6% 6.8%
1 Year Return vs Industry and Market
  • 0KO5 underperformed the Insurance industry which returned -4.5% over the past year.
  • 0KO5 underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
0KO5
Industry
5yr Volatility vs Market

0KO5 Value

 Is Principal Financial Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Principal Financial Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Principal Financial Group.

LSE:0KO5 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= $47.45 * 12.9%
$6.11
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $47.45
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0KO5
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.725 (1 + (1- 21%) (21.62%))
0.899
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.899 * 5.96%)
6.58%

Discounted Cash Flow Calculation for LSE:0KO5 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Principal Financial Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0KO5 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.9% – 6.58%) * $47.45)
$2.99
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.99 / (6.58% - 1.23%)
$55.77
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $47.45 + $55.77
$103.22
LSE:0KO5 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0KO5 represents 0.96088x of NasdaqGS:PFG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.96088x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 103.22 x 0.96088
$99.18
Value per share (USD) From above. $99.18
Current discount Discount to share price of $53.06
= -1 x ($53.06 - $99.18) / $99.18
46.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Principal Financial Group is available for.
Intrinsic value
47%
Share price is $53.06 vs Future cash flow value of $99.18
Current Discount Checks
For Principal Financial Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Principal Financial Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Principal Financial Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Principal Financial Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Principal Financial Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0KO5 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.41
NasdaqGS:PFG Share Price ** NasdaqGS (2019-04-11) in USD $55.22
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Principal Financial Group.

LSE:0KO5 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PFG Share Price ÷ EPS (both in USD)

= 55.22 ÷ 5.41

10.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Principal Financial Group is good value based on earnings compared to the GB Insurance industry average.
  • Principal Financial Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Principal Financial Group's expected growth come at a high price?
Raw Data
LSE:0KO5 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
4.6%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:0KO5 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.2x ÷ 4.6%

2.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Principal Financial Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Principal Financial Group's assets?
Raw Data
LSE:0KO5 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $40.75
NasdaqGS:PFG Share Price * NasdaqGS (2019-04-11) in USD $55.22
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.51x
LSE:0KO5 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PFG Share Price ÷ Book Value per Share (both in USD)

= 55.22 ÷ 40.75

1.36x

* Primary Listing of Principal Financial Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Principal Financial Group is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Principal Financial Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Principal Financial Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

0KO5 Future Performance

 How is Principal Financial Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Principal Financial Group expected to grow at an attractive rate?
  • Principal Financial Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Principal Financial Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Principal Financial Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0KO5 Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0KO5 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 4.6%
LSE:0KO5 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 7.3%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0KO5 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0KO5 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 17,902 1,773 2
2020-12-31 16,326 1,620 5
2019-12-31 15,172 1,509 5
LSE:0KO5 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 14,237 5,157 1,547
2018-09-30 13,704 4,273 2,152
2018-06-30 13,984 3,997 2,506
2018-03-31 13,927 4,412 2,359
2017-12-31 14,093 4,188 2,310
2017-09-30 14,369 4,559 1,787
2017-06-30 12,560 3,561 1,285
2017-03-31 12,407 3,485 1,297
2016-12-31 12,394 3,858 1,317
2016-09-30 11,687 3,981 1,252
2016-06-30 12,110 4,385 1,244
2016-03-31 12,344 4,642 1,163

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Principal Financial Group's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • Principal Financial Group's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0KO5 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Principal Financial Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0KO5 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.27 6.27 6.27 1.00
2020-12-31 5.91 6.14 5.56 5.00
2019-12-31 5.33 5.45 5.16 5.00
LSE:0KO5 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.41
2018-09-30 7.49
2018-06-30 8.68
2018-03-31 8.16
2017-12-31 8.00
2017-09-30 6.19
2017-06-30 4.46
2017-03-31 4.50
2016-12-31 4.55
2016-09-30 4.31
2016-06-30 4.26
2016-03-31 3.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Principal Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Principal Financial Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Principal Financial Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

0KO5 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Principal Financial Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Principal Financial Group's year on year earnings growth rate has been positive over the past 5 years.
  • Principal Financial Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Principal Financial Group's 1-year earnings growth is negative, it can't be compared to the GB Insurance industry average.
Earnings and Revenue History
Principal Financial Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Principal Financial Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0KO5 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 14,237.20 1,546.50 4,136.70
2018-09-30 13,704.30 2,151.80 4,009.50
2018-06-30 13,984.00 2,505.70 3,834.90
2018-03-31 13,927.40 2,358.60 3,775.00
2017-12-31 14,093.20 2,310.40 3,893.80
2017-09-30 14,369.30 1,786.60 3,543.50
2017-06-30 12,559.50 1,284.60 3,529.40
2017-03-31 12,406.90 1,297.40 3,523.70
2016-12-31 12,394.10 1,316.50 3,732.60
2016-09-30 11,687.30 1,252.10 3,496.20
2016-06-30 12,110.20 1,244.30 3,490.60
2016-03-31 12,343.70 1,163.10 3,435.60
2015-12-31 11,964.40 1,209.30 3,466.00
2015-09-30 12,065.40 1,226.10 3,620.30
2015-06-30 11,308.80 1,156.10 3,646.80
2015-03-31 10,656.30 1,221.60 3,668.50
2014-12-31 10,477.60 1,091.40 3,432.90
2014-09-30 10,242.20 1,054.40 3,574.80
2014-06-30 9,997.50 1,069.70 3,414.80
2014-03-31 9,601.40 985.40 3,328.40
2013-12-31 9,289.50 879.70 3,294.20
2013-09-30 8,912.80 861.20 3,060.00
2013-06-30 9,377.90 802.70 3,105.10
2013-03-31 9,285.90 748.00 3,037.20
2012-12-31 9,215.10 773.60 2,933.90
2012-09-30 8,978.00 707.20 2,672.90
2012-06-30 8,366.90 591.90 2,628.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Principal Financial Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Principal Financial Group used its assets less efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Principal Financial Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Principal Financial Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Principal Financial Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

0KO5 Health

 How is Principal Financial Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Principal Financial Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Principal Financial Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Principal Financial Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Principal Financial Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Principal Financial Group Company Filings, last reported 3 months ago.

LSE:0KO5 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 11,847.20 3,321.20 3,721.60
2018-09-30 11,917.20 3,335.30 3,656.20
2018-06-30 11,845.40 3,333.40 3,136.70
2018-03-31 12,383.60 3,324.20 3,119.60
2017-12-31 13,023.20 3,274.40 4,982.60
2017-09-30 12,196.40 3,303.70 4,896.20
2017-06-30 11,333.10 3,245.40 4,040.80
2017-03-31 10,780.00 3,262.90 3,512.30
2016-12-31 10,391.30 3,449.00 5,275.10
2016-09-30 11,053.70 3,923.30 5,243.80
2016-06-30 10,904.80 3,969.50 5,333.70
2016-03-31 10,370.50 3,977.40 4,958.60
2015-12-31 9,463.10 3,834.30 4,956.70
2015-09-30 9,763.80 3,984.00 4,707.00
2015-06-30 9,834.20 3,793.90 4,145.40
2015-03-31 10,557.10 3,089.10 3,528.50
2014-12-31 10,290.00 3,074.50 3,826.20
2014-09-30 10,425.10 3,185.20 3,113.90
2014-06-30 10,741.70 3,265.30 3,628.10
2014-03-31 10,338.10 3,308.80 3,127.40
2013-12-31 10,024.20 3,527.00 4,104.10
2013-09-30 9,607.90 3,556.70 3,415.50
2013-06-30 9,462.50 3,553.40 2,843.60
2013-03-31 9,885.50 3,710.30 3,633.40
2012-12-31 9,763.80 3,646.50 5,744.10
2012-09-30 9,906.90 3,259.10 4,096.80
2012-06-30 9,495.40 2,931.50 3,416.90
  • Principal Financial Group's level of debt (28%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (35.1% vs 28% today).
  • Debt is well covered by operating cash flow (155.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).
X
Financial health checks
We assess Principal Financial Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Principal Financial Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

0KO5 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.91%
Current annual income from Principal Financial Group dividends. Estimated to be 4.26% next year.
If you bought $2,000 of Principal Financial Group shares you are expected to receive $78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Principal Financial Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Principal Financial Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0KO5 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0KO5 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.65 4.00
2020-12-31 2.38 9.00
2019-12-31 2.22 10.00
LSE:0KO5 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-29 2.160 4.220
2018-10-25 2.160 4.640
2018-07-26 2.120 3.779
2018-04-26 2.080 3.700
2018-01-29 2.040 3.289
2017-10-26 1.960 2.777
2017-07-27 1.880 2.905
2017-04-27 1.840 2.865
2017-01-30 1.800 2.894
2016-10-27 1.720 2.979
2016-04-28 1.560 3.405
2016-02-01 1.520 3.887
2015-10-28 1.520 3.369
2015-10-22 1.520 3.030
2015-04-27 1.520 2.956
2015-04-23 1.520 2.953
2014-10-23 1.360 2.657
2014-07-24 1.360 2.625
2014-04-24 1.280 2.635
2014-02-03 1.120 2.481
2013-10-24 1.040 2.165
2013-07-26 1.040 2.410
2013-07-25 1.040 2.495
2013-04-25 0.920 2.431
2013-01-31 0.920 2.798
2012-10-25 0.840 2.979
2012-08-21 0.840 3.036
2012-05-22 0.720 2.839
2012-02-29 0.720 2.627
2011-10-27 0.700 2.768
2010-11-01 0.550 1.902
2009-10-26 0.500 1.957
2009-04-20 0.450 2.041

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Principal Financial Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Principal Financial Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Principal Financial Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Principal Financial Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

0KO5 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Houston
COMPENSATION $12,227,017
AGE 56
TENURE AS CEO 3.7 years
CEO Bio

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. and Principal Life Insurance Company since August 18, 2015 and has been its President since November 25, 2014. Mr. Houston served as the Chief Operating Officer of Principal Financial Group, Inc. since November 25, 2014. He served as the President of Retirement, Insurance and Financial Services at Principal Financial Group, Inc. from January 1, 2010 to November 26, 2014. He served as an Executive Vice President at Principal Financial Group, Inc. since May 18, 2006. Mr. Houston joined Principal Financial Group, Inc. in 1984 and served as a Group Representative in the Dallas group and pension office. Mr. Houston serves as the Iowa State Business School Dean's Advisory Council. He served as an Executive Vice President of Retirement and Investor Services of Principal Financial Group, Inc. since June 2006 and served as its President of Retirement and Investor Services Division since February 2008 to January 1, 2010 and Senior Vice President of Retirement and Investor Services. He served various management positions with Principal Financial Group, Inc. since 1990, including as an Officer since 1990, Vice President since 1997 and Senior Vice President since 2000. Mr. Houston served several positions with Healthextras Inc. since 1984, including Regional Director of Group and Pension Sales since 1990, Regional Vice President since 1993 and Vice President since 1997. He has been the Chairman and Director of Principal Financial Group, Inc. and Principal Life Insurance Company since May 17, 2016 and November 26, 2014 respectively. He serves as the Chairman of Professional Pensions, Inc. and Principal Trust Services. He has been a Director of Healthextras Inc. since April 29, 2005 and Catholic Health Initiatives - Iowa Corp. since May 2010. He serves as Director for several entities that are affiliates of Principal Financial Group, including Executive Benefit Services, Principal Financial Advisors, Principal Trust Company (Asia) Limited and Principal Bank. Mr. Houston serves on the Boards of Principal International, Inc., Principal Financial Advisors, Principal Trust Company (Asia) Limited and Principal Bank. He serves a Member of Professional Pensions, Inc. , Principal Trust Services, Trustar Retirement Services and BCI Group, Inc. He served as a Director of Catalyst Health Solutions, Inc. since April 29, 2005 until July 2, 2012. Mr. Houston received his Bachelor's Degree from the Iowa State University.

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year.
  • Dan's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Principal Financial Group management team in years:

2.9
Average Tenure
58
Average Age
  • The tenure for the Principal Financial Group management team is about average.
Management Team

Dan Houston

TITLE
Chairman
COMPENSATION
$12M
AGE
56
TENURE
3.7 yrs

Deanna Strable-Soethout

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
49
TENURE
2.2 yrs

Tim Dunbar

TITLE
President of Principal Global Asset Management Business
COMPENSATION
$3M
AGE
60
TENURE
0.6 yrs

Luis Valdés

TITLE
President & CEO of Principal International
COMPENSATION
$3M
AGE
60
TENURE
1.3 yrs

Pat Halter

TITLE
CEO & President of Principal Global Investors
COMPENSATION
$4M
AGE
58
TENURE
0.6 yrs

Gary Scholten

TITLE
Executive VP
AGE
60
TENURE
16.4 yrs

John Egan

TITLE
Vice President of Investor Relations
AGE
56
TENURE
9 yrs

Karen Shaff

TITLE
Executive VP
AGE
63
TENURE
18 yrs

Amy Hartnett

TITLE
Director of Business Development
TENURE
4 yrs

Jon Couture

TITLE
Senior VP & Chief Human Resources Officer
AGE
52
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Principal Financial Group board of directors in years:

12.4
Average Tenure
62.5
Average Age
  • The average tenure for the Principal Financial Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Dan Houston

TITLE
Chairman
COMPENSATION
$12M
AGE
56
TENURE
2.9 yrs

Sandra Helton

TITLE
Director
COMPENSATION
$285K
AGE
68
TENURE
17.9 yrs

Betsy Bernard

TITLE
Independent Director
COMPENSATION
$282K
AGE
63
TENURE
18.2 yrs

Jocelyn Carter-Miller

TITLE
Director
COMPENSATION
$285K
AGE
60
TENURE
18 yrs

Roger Hochschild

TITLE
Director
COMPENSATION
$267K
AGE
53
TENURE
4.1 yrs

Scott Mills

TITLE
Director
COMPENSATION
$285K
AGE
50
TENURE
2.8 yrs

Liz Tallett

TITLE
Lead Director
COMPENSATION
$290K
AGE
69
TENURE
11.9 yrs

Charles Gelatt

TITLE
Director
COMPENSATION
$265K
AGE
70
TENURE
18 yrs

Michael Dan

TITLE
Director
COMPENSATION
$265K
AGE
67
TENURE
12.9 yrs

Blair Pickerell

TITLE
Director
COMPENSATION
$265K
AGE
62
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Nov 18 Buy Charles Gelatt Individual 05. Nov 18 05. Nov 18 25,000 $48.10 $1,202,500
X
Management checks
We assess Principal Financial Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Principal Financial Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

0KO5 News

Simply Wall St News

0KO5 Company Info

Description

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, and pension risk transfer services; individual retirement accounts and payroll deduction plans; investment only products; and mutual funds, individual annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation and income annuity products, mutual funds, asset management, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.

Details
Name: Principal Financial Group, Inc.
0KO5
Exchange: LSE
Founded: 1879
$15,359,825,674
278,156,930
Website: http://www.principal.com
Address: Principal Financial Group, Inc.
711 High Street,
Des Moines,
Iowa, 50392,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PFG Common Stock Nasdaq Global Select US USD 23. Oct 2001
DB PG4 Common Stock Deutsche Boerse AG DE EUR 23. Oct 2001
LSE 0KO5 Common Stock London Stock Exchange GB USD 23. Oct 2001
Number of employees
Current staff
Staff numbers
16,475
Principal Financial Group employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 22:20
End of day share price update: 2019/04/11 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.