PFG

Principal Financial GroupNasdaqGS:PFG Stock Report

Market Cap

US$16.6b

7D

-5.3%

1Y

59.0%

Updated

22 Sep, 2021

Data

Company Financials +
PFG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends6/6

PFG Overview

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide.

Principal Financial Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Principal Financial Group
Historical stock prices
Current Share PriceUS$61.71
52 Week HighUS$37.03
52 Week LowUS$68.40
Beta1.63
1 Month Change-5.10%
3 Month Change-0.87%
1 Year Change58.96%
3 Year Change5.89%
5 Year Change22.39%
Change since IPO193.86%

Recent News & Updates

Aug 14
Principal Financial Group's (NASDAQ:PFG) Shareholders Will Receive A Bigger Dividend Than Last Year

Principal Financial Group's (NASDAQ:PFG) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Principal Financial Group, Inc. ( NASDAQ:PFG ) has announced that it will be increasing its dividend on...

Jul 31
Principal Financial Group (NASDAQ:PFG) Is Increasing Its Dividend To US$0.63

Principal Financial Group (NASDAQ:PFG) Is Increasing Its Dividend To US$0.63

The board of Principal Financial Group, Inc. ( NASDAQ:PFG ) has announced that it will be increasing its dividend on...

Jul 08

Principal Financial Group: On The Sidelines Following Status Quo Investor Update

Principal Financial Group recently held a strategic review and investor day event, which offered few surprises. The planned exit of the US retail fixed annuities and individual life insurance businesses are positive but remain well short of a proper strategic overhaul. While the increased focus on buybacks is a positive, much of this has likely been priced into the shares at current levels.

Jun 15

Principal Financial downgraded to Neutral at Piper on absence of catalysts

Rafe Swan/Cultura via Getty Images Piper Sandler analyst John Barnidge downgrades Principal Financial Group ([[PFG]] -0.5%) stock to Neutral from Overweight on lack of catalysts to continue fueling its relative outperformance. Expects that PFG management will focus on long-term profitability improvement targets at its upcoming investor day and doesn't expect any major changes to continue its outperformance. The analyst also doesn't see anything "revolutionary" coming out of its strategic review. "With PFG's stock price now >20% higher, the risk/reward of

Shareholder Returns

PFGUS InsuranceUS Market
7D-5.3%-2.3%-1.8%
1Y59.0%36.3%31.5%

Return vs Industry: PFG exceeded the US Insurance industry which returned 36.4% over the past year.

Return vs Market: PFG exceeded the US Market which returned 33% over the past year.

Price Volatility

Is PFG's price volatile compared to industry and market?
PFG volatility
PFG Beta1.63
Industry Beta0.96
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
187917,400Dan Houstonhttps://www.principal.com

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates in Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments.

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: PFG ($61.71) is trading below our estimate of fair value ($152.34)

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


Price To Earnings Ratio

PE vs Industry: PFG is poor value based on its PE Ratio (10.4x) compared to the US Insurance industry average (9.5x).

PE vs Market: PFG is good value based on its PE Ratio (10.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: PFG is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: PFG's PB Ratio (1x) is in line with the US Insurance industry average.


Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFG's forecast earnings growth (5.4% per year) is above the savings rate (2%).

Earnings vs Market: PFG's earnings (5.4% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: PFG's revenue (8.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PFG's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFG's Return on Equity is forecast to be low in 3 years time (12.8%).


Past Performance

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

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFG has high quality earnings.

Growing Profit Margin: PFG's current net profit margins (11.5%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: PFG's earnings have declined by 1.7% per year over the past 5 years.

Accelerating Growth: PFG's earnings growth over the past year (25.5%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: PFG earnings growth over the past year (25.5%) underperformed the Insurance industry 76%.


Return on Equity

High ROE: PFG's Return on Equity (9.7%) is considered low.


Financial Health

How is Principal Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: PFG's short term assets ($6.3B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: PFG's short term assets ($6.3B) do not cover its long term liabilities ($282.4B).


Debt to Equity History and Analysis

Debt Level: PFG's debt to equity ratio (26.5%) is considered satisfactory.

Reducing Debt: PFG's debt to equity ratio has reduced from 36.4% to 26.5% over the past 5 years.

Debt Coverage: PFG's debt is well covered by operating cash flow (64.2%).

Interest Coverage: Insufficient data to determine if PFG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

4.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFG's dividend (4.08%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: PFG's dividend (4.08%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), PFG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFG's dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Dan Houston (59 yo)

6.08yrs

Tenure

US$15,614,418

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 ($USD15.61M) is above average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: PFG's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: PFG's board of directors are considered experienced (4.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Principal Financial Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Principal Financial Group, Inc.
  • Ticker: PFG
  • Exchange: NasdaqGS
  • Founded: 1879
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$16.563b
  • Shares outstanding: 268.39m
  • Website: https://www.principal.com

Number of Employees


Location

  • Principal Financial Group, Inc.
  • 711 High Street
  • Des Moines
  • Iowa
  • 50392
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:10
End of Day Share Price2021/09/21 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.