Principal Financial Group
Market Cap
US$14.9b
Last Updated
2020/02/24 23:17 UTC
Data Sources
Company Financials +
Executive Summary
Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide.
Rewards
Risk Analysis
No risks detected for 0KO5 from our risk checks.
Snowflake Analysis
Undervalued established dividend payer.
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: 0KO5 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.3%
0KO5
-0.9%
GB Insurance
-0.5%
GB Market
1 Year Return
11.1%
0KO5
-1.6%
GB Insurance
6.0%
GB Market
Return vs Industry: 0KO5 exceeded the UK Insurance industry which returned -1.6% over the past year.
Return vs Market: 0KO5 exceeded the UK Market which returned 6% over the past year.
Shareholder returns
| 0KO5 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | -0.9% | -0.5% |
| 30 Day | 7.8% | 2.2% | -1.8% |
| 90 Day | 9.0% | 8.0% | 2.4% |
| 1 Year | 15.7%11.1% | 9.4%-1.6% | 11.5%6.0% |
| 3 Year | n/a | 18.7%-2.5% | 18.2%3.5% |
| 5 Year | n/a | 30.5%-2.9% | 34.3%3.5% |
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: 0KO5 ($59.18) is trading below our estimate of fair value ($162.05)
Significantly Below Fair Value: 0KO5 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 0KO5 is good value based on its PE Ratio (10.3x) compared to the Insurance industry average (14.6x).
PE vs Market: 0KO5 is good value based on its PE Ratio (10.3x) compared to the UK market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: 0KO5 is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: 0KO5 is good value based on its PB Ratio (1x) compared to the GB Insurance industry average (1.8x).
Next Steps
Future Growth
How is Principal Financial Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
9.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 0KO5's forecast earnings growth (9.4% per year) is above the savings rate (0.5%).
Earnings vs Market: 0KO5's earnings (9.4% per year) are forecast to grow slower than the UK market (13.1% per year).
High Growth Earnings: 0KO5's earnings are forecast to grow, but not significantly.
Revenue vs Market: 0KO5's revenue (7% per year) is forecast to grow faster than the UK market (3.8% per year).
High Growth Revenue: 0KO5's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 0KO5's Return on Equity is forecast to be low in 3 years time (12.3%).
Next Steps
Past Performance
How has Principal Financial Group performed over the past 5 years?
9.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 0KO5 has high quality earnings.
Growing Profit Margin: 0KO5's current net profit margins (8.6%) are lower than last year (10.9%).
Past Earnings Growth Analysis
Earnings Trend: 0KO5's earnings have grown by 9.3% per year over the past 5 years.
Accelerating Growth: 0KO5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 0KO5 had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Insurance industry average (23.4%).
Return on Equity
High ROE: 0KO5's Return on Equity (9.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Principal Financial Group'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: 0KO5 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 0KO5's debt is covered by short term assets (assets are 1.8x debt).
Financial Institutions Analysis
Asset Level: 0KO5's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if 0KO5 has a sufficient allowance for bad loans.
Low Risk Liabilities: 0KO5 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if 0KO5 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 0KO5 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if 0KO5 has an appropriate level of bad loans.
Next Steps
Dividend
What is Principal Financial Group's current dividend yield, its reliability and sustainability?
4.33%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Principal Financial Group before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 0KO5's dividend (4.33%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: 0KO5's dividend (4.33%) is low compared to the top 25% of dividend payers in the UK market (5.03%).
Stability and Growth of Payments
Stable Dividend: 0KO5's dividends per share have been stable in the past 10 years.
Growing Dividend: 0KO5's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.6%), 0KO5's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 0KO5's dividends in 3 years are forecast to be well covered by earnings (38% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Dan Houston (57yo)
4.5yrs
Tenure
US$12,227,017
Compensation
Mr. Daniel Joseph Houston, also known as Dan, has been Chairman of the Board at Greater Des Moines Partnership since January 2018. He has been the Chief Executive Officer of Principal Financial Group, Inc. ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD12.23M) is above average for companies of similar size in the UK market ($USD4.67M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.5yrs | US$12.23m | 0.064% $9.6m | |
| Executive VP & CFO | 3yrs | US$3.45m | 0.045% $6.7m | |
| President of Principal Global Asset Management Business | 1.4yrs | US$2.56m | 0.023% $3.4m | |
| President & CEO of Principal International | 8.9yrs | US$2.86m | 0.022% $3.2m | |
| Chief Executive Officer of Principal Global Investors | 1.4yrs | US$3.68m | 0.029% $4.3m | |
| Executive VP | 18.1yrs | no data | 0.030% $4.5m | |
| Vice President of Investor Relations | 9.8yrs | no data | no data | |
| Executive VP | 18.8yrs | no data | 0.036% $5.3m | |
| Senior VP & Chief Compliance Officer | 1.1yrs | no data | no data | |
| Senior VP & Chief Marketing Officer | 0.6yrs | no data | no data |
3.8yrs
Average Tenure
60yo
Average Age
Experienced Management: 0KO5's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.5yrs | US$12.23m | 0.064% $9.6m | |
| Independent Director | 18.8yrs | US$284.95k | 0.00040% $59.8k | |
| Independent Director | 19yrs | US$282.45k | 0.00049% $73.2k | |
| Independent Director | 13.8yrs | US$269.95k | 0.0036% $544.0k | |
| Independent Director | 18.8yrs | US$289.95k | 0.00096% $143.5k | |
| Independent Director | 4.9yrs | US$267.45k | no data | |
| Independent Director | 18.8yrs | US$284.95k | 0.00010% $14.9k | |
| Independent Director | 18.8yrs | US$264.95k | 0.053% $7.9m | |
| Lead Director | 0yrs | US$284.95k | no data | |
| Independent Director | 4.5yrs | US$264.95k | no data |
18.8yrs
Average Tenure
63.5yo
Average Age
Experienced Board: 0KO5's board of directors are seasoned and experienced ( 18.8 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.
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: 0KO5
- Exchange: LSE
- Founded: 1879
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: US$14.946b
- Shares outstanding: 274.69m
- Website: https://www.principal.com
Number of Employees
Location
- Principal Financial Group, Inc.
- 711 High Street
- Des Moines
- Iowa
- 50392
- United States
Listings
| 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 |
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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 23:17 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.