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PRU

PrudentialLSE:PRU Stock Report

Market Cap

UK£35.6b

7D

-10.2%

1Y

7.6%

Updated

26 Nov, 2021

Data

Company Financials +
PRU fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends2/6

PRU Stock Overview

Prudential plc, through its subsidiaries, provides life and health insurance, and retirement and asset management solutions to individuals in Asia, the United States, and Africa.

Prudential Competitors

Legal & General Group

LSE:LGEN

UK£17.7b

Phoenix Group Holdings

LSE:PHNX

UK£6.6b

Berkshire Hathaway

NYSE:BRK.A

US$643.1b

Ping An Insurance (Group) Company of China

SEHK:2318

HK$1.0t

Price History & Performance

Summary of all time highs, changes and price drops for Prudential
Historical stock prices
Current Share PriceUK£13.04
52 Week HighUK£15.99
52 Week LowUK£11.58
Beta1.43
1 Month Change-12.61%
3 Month Change-14.64%
1 Year Change7.55%
3 Year Change-15.38%
5 Year Change-16.50%
Change since IPO427.73%

Recent News & Updates

Jul 23
Analysts Are More Bearish On Prudential plc (LON:PRU) Than They Used To Be

Analysts Are More Bearish On Prudential plc (LON:PRU) Than They Used To Be

Market forces rained on the parade of Prudential plc ( LON:PRU ) shareholders today, when the analysts downgraded their...

Shareholder Returns

PRUGB InsuranceGB Market
7D-10.2%-1.5%-1.3%
1Y7.6%9.0%17.9%

Return vs Industry: PRU exceeded the UK Insurance industry which returned 8.8% over the past year.

Return vs Market: PRU exceeded the UK Market which returned 14.8% over the past year.

Price Volatility

Is PRU's price volatile compared to industry and market?
PRU volatility
PRU Average Weekly Movement3.9%
Insurance Industry Average Movement3.4%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: PRU is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PRU's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
184816,226Mike Wellshttps://www.prudentialplc.com

Prudential plc, through its subsidiaries, provides life and health insurance, and retirement and asset management solutions to individuals in Asia, the United States, and Africa. It offers health and protection, as well as savings products, such as participating, linked, and other traditional products; mutual funds; life insurance; property and casualty insurance; and group insurance. The company also provides insurance against common critical illnesses, including cancer, stroke, and heart attack; tropical disease protection, such as dengue, malaria, and measles; and food poisoning, minor burns, broken bones, and accident income support, as well as investment fund products.

Prudential Fundamentals Summary

How do Prudential's earnings and revenue compare to its market cap?
PRU fundamental statistics
Market CapUS$47.44b
Earnings (TTM)US$2.58b
Revenue (TTM)US$52.16b

18.4x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRU income statement (TTM)
RevenueUS$52.16b
Cost of RevenueUS$45.85b
Gross ProfitUS$6.31b
ExpensesUS$3.73b
EarningsUS$2.58b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 09, 2022

Earnings per share (EPS)0.94
Gross Margin12.10%
Net Profit Margin4.95%
Debt/Equity Ratio45.0%

How did PRU perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Prudential undervalued compared to its fair value and its price relative to the market?

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRU (£14.2) is trading below our estimate of fair value (£21.98)

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


Price To Earnings Ratio

PE vs Industry: PRU is poor value based on its PE Ratio (20x) compared to the UK Insurance industry average (13.3x).

PE vs Market: PRU is poor value based on its PE Ratio (20x) compared to the UK market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: PRU is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: PRU is overvalued based on its PB Ratio (3.3x) compared to the GB Insurance industry average (1.2x).


Future Growth

How is Prudential forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRU's forecast earnings growth (40.4% per year) is above the savings rate (0.9%).

Earnings vs Market: PRU's earnings (40.4% per year) are forecast to grow faster than the UK market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PRU's revenue is expected to decline over the next 3 years (-23.5% per year).

High Growth Revenue: PRU's revenue is forecast to decline over the next 3 years (-23.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRU's Return on Equity is forecast to be high in 3 years time (20.3%)


Past Performance

How has Prudential performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRU has high quality earnings.

Growing Profit Margin: PRU's current net profit margins (4.9%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: PRU's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: PRU's earnings growth over the past year (85.4%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: PRU earnings growth over the past year (85.4%) exceeded the Insurance industry 18.5%.


Return on Equity

High ROE: PRU's Return on Equity (16.2%) is considered low.


Financial Health

How is Prudential's financial position?


Financial Position Analysis

Short Term Liabilities: PRU's short term assets ($355.8B) exceed its short term liabilities ($347.2B).

Long Term Liabilities: PRU's short term assets ($355.8B) exceed its long term liabilities ($161.7B).


Debt to Equity History and Analysis

Debt Level: PRU's net debt to equity ratio (6.2%) is considered satisfactory.

Reducing Debt: PRU's debt to equity ratio has reduced from 103.7% to 45% over the past 5 years.

Debt Coverage: PRU's debt is not well covered by operating cash flow (8%).

Interest Coverage: PRU's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRU's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: PRU's dividend (0.85%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


Stability and Growth of Payments

Stable Dividend: PRU's dividend payments have been volatile in the past 10 years.

Growing Dividend: PRU's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.2%), PRU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRU's dividends in 3 years are forecast to be well covered by earnings (16.4% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Mike Wells (60 yo)

6.42yrs

Tenure

US$6,880,000

Compensation

Mr. Michael Andrew Wells, also known as Mike, served as Director of Jackson Financial Inc. since July 2020 until September 13, 2021. He has been Group Chief Executive of Prudential Plc (“Prudential”) since...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.88M) is above average for companies of similar size in the UK market ($USD3.66M).

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


Leadership Team

Experienced Management: PRU's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: PRU's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

Company Information

Prudential plc's employee growth, exchange listings and data sources


Key Information

  • Name: Prudential plc
  • Ticker: PRU
  • Exchange: LSE
  • Founded: 1848
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: UK£35.624b
  • Shares outstanding: 2.73b
  • Website: https://www.prudentialplc.com

Number of Employees


Location

  • Prudential plc
  • 1 Angel Court
  • London
  • Greater London
  • EC2R 7AG
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:16
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.