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Prudential

LSE:PRU
Snowflake Description

Established dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRU
LSE
£40B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Prudential plc, together with its subsidiaries, provides a range of retail financial products and services, and asset management services in Asia, the United States, the United Kingdom, Europe, and Africa. The last earnings update was 173 days ago. More info.


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PRU Share Price and Events
7 Day Returns
1.5%
LSE:PRU
2.7%
GB Insurance
1.5%
GB Market
1 Year Returns
-16.1%
LSE:PRU
-8.5%
GB Insurance
-3%
GB Market
PRU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Prudential (PRU) 1.5% 2% 0.6% -16.1% 22.3% 11.7%
GB Insurance 2.7% 2.5% 2.1% -8.5% 15.6% 11%
GB Market 1.5% 3% 2.7% -3% 20.8% -3.8%
1 Year Return vs Industry and Market
  • PRU underperformed the Insurance industry which returned -8.5% over the past year.
  • PRU underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3% over the past year.
Price Volatility
PRU
Industry
5yr Volatility vs Market

PRU Value

 Is Prudential 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 Prudential 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 Prudential.

LSE:PRU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= £8.67 * 20%
£1.74
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. £8.67
Discount Rate (Cost of Equity) See below 8.5%
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:PRU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.6 (1 + (1- 19%) (47.25%))
0.83
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.83 * 8.77%)
8.51%

Discounted Cash Flow Calculation for LSE:PRU using Excess Returns Model Model

The calculations below outline how an intrinsic value for Prudential 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:PRU Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (20% – 8.51%) * £8.67)
£1.00
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £1.00 / (8.51% - 1.23%)
£13.73
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £8.67 + £13.73
£22.4
LSE:PRU Discount to Share Price
Calculation Result
Value per share (GBP) From above. £22.40
Current discount Discount to share price of £15.33
= -1 x (£15.33 - £22.40) / £22.40
31.6%

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

Current Discount
Amount off the current price Prudential is available for.
Intrinsic value
32%
Share price is £15.33 vs Future cash flow value of £22.4
Current Discount Checks
For Prudential to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Prudential's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Prudential's share price is below the future cash flow value, but not 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 Prudential's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Prudential's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PRU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in GBP £0.87
LSE:PRU Share Price ** LSE (2019-02-18) in GBP £15.33
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 22 Publicly-Listed Insurance Companies 16.63x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 814 Publicly-Listed Companies 15.87x

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

** Primary Listing of Prudential.

LSE:PRU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PRU Share Price ÷ EPS (both in GBP)

= 15.33 ÷ 0.87

17.6x

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

  • Prudential is overvalued based on earnings compared to the GB Insurance industry average.
  • Prudential is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Prudential's expected growth come at a high price?
Raw Data
LSE:PRU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
16.2%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 19 Publicly-Listed Insurance Companies 1.24x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 579 Publicly-Listed Companies 1.26x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.6x ÷ 16.2%

1.09x

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

  • Prudential is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Prudential's assets?
Raw Data
LSE:PRU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in GBP £6.15
LSE:PRU Share Price * LSE (2019-02-18) in GBP £15.33
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.15x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,362 Publicly-Listed Companies 1.52x
LSE:PRU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PRU Share Price ÷ Book Value per Share (both in GBP)

= 15.33 ÷ 6.15

2.49x

* Primary Listing of Prudential.

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

  • Prudential is overvalued based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Prudential'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. Prudential has a total score of 1/6, 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.

PRU Future Performance

 How is Prudential expected to perform in the next 1 to 3 years based on estimates from 10 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
16.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Prudential expected to grow at an attractive rate?
  • Prudential's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Prudential's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Prudential's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PRU Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PRU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 16.2%
LSE:PRU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts -0%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*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:PRU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PRU Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 5,899
2021-12-31 5,316
2020-12-31 51,166 4,622 1
2019-12-31 46,092 3,991 3
2018-12-31 43,933 3,322 2
LSE:PRU Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-30 54,557 799 2,239
2018-03-31 70,560 1,210 2,314
2017-12-31 86,562 1,620 2,389
2017-09-30 82,851 1,554 2,564
2017-06-30 79,225 1,488 2,739
2017-03-31 75,534 1,845 2,330
2016-12-31 71,842 2,201 1,921
2016-09-30 61,705 1,569 1,875
2016-06-30 51,567 937 1,828
2016-03-31 46,436 1,735 2,204
2015-12-31 41,305 2,533 2,579
2015-09-30 48,042 3,088 2,544

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Prudential's earnings are expected to grow by 16.2% yearly, however this is not considered high growth (20% yearly).
  • Prudential's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:PRU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Prudential Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PRU Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 2.26 2.26 2.26 1.00
2021-12-31 2.04 2.04 2.04 1.00
2020-12-31 1.79 2.01 1.50 8.00
2019-12-31 1.54 1.78 1.15 11.00
2018-12-31 1.34 1.56 1.22 10.00
LSE:PRU Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-30 0.87
2018-03-31 0.90
2017-12-31 0.93
2017-09-30 1.00
2017-06-30 1.07
2017-03-31 0.91
2016-12-31 0.75
2016-09-30 0.73
2016-06-30 0.72
2016-03-31 0.86
2015-12-31 1.01
2015-09-30 1.00

*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.
  • Prudential is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Prudential'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.
Prudential has a total score of 3/6, 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.

PRU Past Performance

  How has Prudential 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 Prudential'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.
  • Prudential's year on year earnings growth rate has been positive over the past 5 years.
  • Prudential's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Prudential's 1-year earnings growth is negative, it can't be compared to the GB Insurance industry average.
Earnings and Revenue History
Prudential'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 Prudential Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PRU Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 54,557.00 2,239.00 6,115.00
2018-03-31 70,559.50 2,314.00 6,247.50
2017-12-31 86,562.00 2,389.00 6,380.00
2017-09-30 82,851.00 2,564.00 6,168.00
2017-06-30 79,225.00 2,739.00 6,041.00
2017-03-31 75,533.50 2,330.00 5,781.50
2016-12-31 71,842.00 1,921.00 5,522.00
2016-09-30 61,704.50 1,874.50 5,202.50
2016-06-30 51,567.00 1,828.00 4,883.00
2016-03-31 46,436.00 2,203.50 4,814.50
2015-12-31 41,305.00 2,579.00 4,746.00
2015-09-30 48,041.50 2,544.00 4,724.50
2015-06-30 54,778.00 2,509.00 4,703.00
2015-03-31 57,452.00 2,362.50 4,594.50
2014-12-31 60,126.00 2,216.00 4,486.00
2014-09-30 60,368.50 2,171.00 4,379.50
2014-06-30 60,611.00 2,126.00 4,273.00
2014-03-31 56,493.00 1,736.00 4,288.00
2013-12-31 52,375.00 1,346.00 4,303.00
2013-09-30 52,921.00 1,493.50 4,168.00
2013-06-30 53,467.00 1,641.00 4,033.00
2013-03-31 53,952.50 1,902.00 3,948.00
2012-12-31 54,438.00 2,163.00 3,863.00
2012-09-30 46,611.00 1,802.50 3,828.00
2012-06-30 38,265.00 1,473.00 3,717.00
2012-03-31 37,385.50 1,444.00 3,620.50

*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.
  • Prudential has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Prudential used its assets less efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Prudential's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Prudential'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.
Prudential 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.

PRU Health

 How is Prudential'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 Prudential's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Prudential's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Prudential's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Prudential'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 2.2x 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 Prudential Company Filings, last reported 7 months ago.

LSE:PRU Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 15,890.00 18,702.00 8,450.00
2018-03-31 15,890.00 18,702.00 8,450.00
2017-12-31 16,094.00 17,449.00 328.00
2017-09-30 16,094.00 17,449.00 328.00
2017-06-30 15,450.00 18,454.00 9,893.00
2017-03-31 15,450.00 18,454.00 9,893.00
2016-12-31 14,667.00 15,495.00 247.00
2016-09-30 14,667.00 15,495.00 247.00
2016-06-30 14,606.00 15,154.00 8,530.00
2016-03-31 14,606.00 15,154.00 8,530.00
2015-12-31 12,956.00 12,068.00 365.00
2015-09-30 12,956.00 12,068.00 365.00
2015-06-30 12,105.00 11,769.00 8,298.00
2015-03-31 12,105.00 11,769.00 8,298.00
2014-12-31 11,812.00 10,007.00 304.00
2014-09-30 11,812.00 10,007.00 304.00
2014-06-30 10,626.00 9,862.00 5,903.00
2014-03-31 10,626.00 9,862.00 5,903.00
2013-12-31 9,651.00 9,757.00 6,785.00
2013-09-30 9,651.00 9,757.00 6,785.00
2013-06-30 9,631.00 10,492.00 6,840.00
2013-03-31 9,631.00 10,492.00 6,840.00
2012-12-31 10,364.00 9,148.00 6,126.00
2012-09-30 10,364.00 10,818.00 6,384.00
2012-06-30 9,326.00 9,918.00 6,737.00
2012-03-31 9,326.00 9,918.00 6,737.00
  • Prudential's level of debt (117.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (108.9% vs 117.7% today).
  • Debt is not well covered by operating cash flow (4.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).
X
Financial health checks
We assess Prudential'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. Prudential has a total score of 1/6, 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.

PRU Dividends

 What is Prudential'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
3.07%
Current annual income from Prudential dividends. Estimated to be 3.8% next year.
If you bought £2,000 of Prudential shares you are expected to receive £61 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?
  • Prudential's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Prudential's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.25%).
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:PRU 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 10 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 23 Stocks 4.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
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 5.3%

Industry and Market average data is calculated daily.

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

LSE:PRU Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.70 2.00
2021-12-31 0.64 2.00
2020-12-31 0.59 14.00
2019-12-31 0.55 17.00
2018-12-31 0.51 16.00
LSE:PRU Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-03-14 0.470 2.817
2017-03-14 0.435 2.409
2016-03-31 0.388 2.734
2016-03-09 0.388 2.908
2015-03-10 0.369 2.482
2014-03-12 0.336 2.352
2013-08-13 0.305 2.438
2013-03-13 0.292 2.623
2012-03-13 0.252 3.093
2011-08-05 0.252 3.977
2011-05-11 0.239 3.378
2011-03-31 0.239 3.202
2011-03-09 0.239 3.322
2010-05-17 0.199 3.274
2010-03-01 0.199 3.635
2009-08-13 0.192 3.243
2009-03-19 0.189 4.697
2009-02-19 0.183 7.072

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 Prudential's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Prudential's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Prudential afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Prudential 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.

PRU Management

 What is the CEO of Prudential'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
Mike Wells
COMPENSATION £8,702,000
AGE 57
TENURE AS CEO 3.7 years
CEO Bio

Mr. Michael Andrew Wells has served as Group Chief Executive of Prudential Plc (“Prudential”) since June 2015 and has been its Director since 2011. He joined the Prudential Group in 1995 and became Chief Operating Officer and Vice-Chairman of Jackson in 2003. In 2011, he was appointed President and Chief Executive Officer of Jackson, and joined the Board of Prudential. During his leadership of Jackson, he was responsible for the development of Jackson’s market-leading range of retirement solutions. He was also part of the Jackson teams that purchased and successfully integrated a savings institute, three broker-dealers and two life companies. He has more than three decades' experience in insurance and retirement services, having started his career at the US brokerage house Dean Witter, before going on to become a managing director at Smith Barney Shearson.

CEO Compensation
  • Mike's compensation has increased by more than 20% in the past year.
  • Mike'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 Prudential management team in years:

1.6
Average Tenure
58.5
Average Age
  • The average tenure for the Prudential management team is less than 2 years, this suggests a new team.
Management Team

Mike Wells

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£9M
AGE
57
TENURE
3.7 yrs

John Foley

TITLE
Executive Director & Chief Executive of M&G Prudential
COMPENSATION
£5M
AGE
62
TENURE
1.5 yrs

Barry Stowe

TITLE
COMPENSATION
£10M
AGE
60
TENURE
0.2 yrs

Mark FitzPatrick

TITLE
CFO & Executive Director
AGE
50
TENURE
1.6 yrs

Shali Vasudeva

TITLE
Chief Operating Officer

Rebecca Wyatt

TITLE
Head of Financial Accounting

Alan Porter

TITLE
Group General Counsel & Company Secretary

Jonathan Oliver

TITLE
Group Communications Director

Tim Rolfe

TITLE
Group Human Resources Director
TENURE
3.9 yrs

Allen Thai

TITLE
Chief Representative of Myanmar Office
Board of Directors Tenure

Average tenure and age of the Prudential board of directors in years:

4.5
Average Tenure
62
Average Age
  • The tenure for the Prudential board of directors is about average.
Board of Directors

Paul Victor Sant Manduca

TITLE
Chairman of the Board
COMPENSATION
£849K
AGE
66
TENURE
6.6 yrs

Mike Wells

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£9M
AGE
57
TENURE
8.1 yrs

John Foley

TITLE
Executive Director & Chief Executive of M&G Prudential
COMPENSATION
£5M
AGE
62
TENURE
3.1 yrs

Mark FitzPatrick

TITLE
CFO & Executive Director
AGE
50
TENURE
1.6 yrs

Stuart Turner

TITLE
Group Chief Risk Officer & Executive Director
AGE
48
TENURE
0.9 yrs

Michael Falcon

TITLE
Executive Director
TENURE
0.1 yrs

Howard Davies

TITLE
Independent Non-Executive Director
COMPENSATION
£209K
AGE
67
TENURE
8.3 yrs

Anthony John Liddell Nightingale

TITLE
Independent Non-Executive Director
COMPENSATION
£166K
AGE
71
TENURE
5.7 yrs

David John Law

TITLE
Independent Non-Executive Director
COMPENSATION
£176K
AGE
58
TENURE
3.4 yrs

Philip Remnant

TITLE
Senior Independent Director
COMPENSATION
£211K
AGE
63
TENURE
6.1 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 (£)
X
Management checks
We assess Prudential'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. Prudential 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.

PRU News

Simply Wall St News

Did Prudential plc (LON:PRU) Use Debt To Deliver Its ROE Of 14%?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Prudential plc's (LON:PRU) High P/E Ratio Isn't Necessarily A Bad Thing

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate Prudential's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why Prudential plc (LON:PRU) Is A Top Dividend Stock

Prudential plc (LON:PRU) has pleased shareholders over the past 10 years, by paying out dividends. … The stock currently pays out a dividend yield of 3.3%, and has a market cap of UK£36b. … 5 checks you should do on a dividend stock

Simply Wall St -

Prudential plc's (LON:PRU) Earnings Dropped -18%, How Did It Fare Against The Industry?

In this article, I will take a look at Prudential plc's (LON:PRU) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Did PRU perform worse than its track record and industry. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.7%, indicating the rate at which PRU is growing has slowed down

Simply Wall St -

When Should You Buy Prudential plc (LON:PRU)?

saw significant share price volatility over the past couple of months on the LSE, rising to the highs of £18.24 and falling to the lows of £14.95. … This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Prudential's current trading price of £16.16 reflective of the actual value of the?

Simply Wall St -

Is Prudential plc's (LON:PRU) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Mike Wells's Compensation Compare With Similar Sized Companies. … Our data indicates that Prudential plc is worth UK£38.6b, and total annual CEO compensation is UK£9m.

Simply Wall St -

How Good Is Prudential plc (LON:PRU), When It Comes To ROE?

Our data shows Prudential has a return on equity of 14% for the last year. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Income Investors Buy Prudential plc (LON:PRU) Before Its Ex-Dividend?

Investors who want to cash in on Prudential plc's (LON:PRU) upcoming dividend of UK£0.16 per share have only 2 days left to buy the shares before its ex-dividend date, 23 August 2018, in time for dividends payable on the 27 September 2018. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:? … Has it paid dividend every year without dramatically reducing payout in the past?

Simply Wall St -

Why Prudential plc (LON:PRU) Is A Dividend Rockstar

Over the past 10 years Prudential plc (LON:PRU) has returned an average of 3.00% per year from dividend payouts. … Let's take a look at Prudential in more detail. … 5 questions to ask before buying a dividend stock

Simply Wall St -

How Does Prudential plc's (LON:PRU) Earnings Growth Stack Up Against Industry Performance?

Today I will assess PRU's recent performance announced on 31 December 2017 and evaluate these figures to its long-term trend and industry movements. … Did PRU's recent earnings growth beat the long-term trend and the industry. … PRU's trailing twelve-month earnings (from 31 December 2017) of UK£2.39b has

Simply Wall St -

PRU Company Info

Map
Description

Prudential plc, together with its subsidiaries, provides a range of retail financial products and services, and asset management services in Asia, the United States, the United Kingdom, Europe, and Africa. The company offers health and protection, as well as other life insurance products, including participating business and mutual funds; and personal lines property and casualty insurance, group insurance, and institutional fund management services. It also provides fixed annuities, such as fixed interest rate, and fixed index and immediate annuities; variable annuities; and institutional products comprising guaranteed investment contracts and funding agreements. In addition, the company offers savings and investment solutions; and unit-linked and collective investments, as well as corporate pension services that include auto-enrolment services. Further, it provides long-term products, which comprise pension products and annuities; investment bonds; with-profits savings and protection products; level, fixed increase, and RPI annuities; onshore and offshore bonds; and pension and flexi-income drawdown products, including corporate, individual pension, and flexi-access drawdown products. The company offers its products and services through an agency sales force together with various banks, brokers, local partners, independent insurance agents, independent broker-dealers, regional broker-dealers, warehouses, credit unions, and other financial institutions. Prudential plc was founded in 1848 and is headquartered in London, the United Kingdom.

Details
Name: Prudential plc
PRU
Exchange: LSE
Founded: 1848
£39,577,107,950
2,581,676,970
Website: http://www.prudential.co.uk
Address: Prudential plc
Laurence Pountney Hill,
London,
Greater London, EC4R 0HH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PRU Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK PUKP.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB PRU Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SEHK 2378 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
SGX K6S Ordinary Shares Singapore Exchange SG USD 02. Jan 1992
BATS-CHIXE PRUL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
NYSE PUK ADR EACH REPR 2 ORD GBP0.05 New York Stock Exchange US USD 28. Mar 1991
NYSE PUK.PR 6.75% PERP SUB New York Stock Exchange US USD 03. Aug 2004
DB PRU2 ADR EACH REPR 2 ORD GBP0.05 Deutsche Boerse AG DE EUR 28. Mar 1991
BMV PUK N ADR EACH REPR 2 ORD GBP0.05 Bolsa Mexicana de Valores MX MXN 28. Mar 1991
Number of employees
Current staff
Staff numbers
22,912
Prudential employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 20:37
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/08/29
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


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.