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PFG

Principal Financial Group NasdaqGS:PFG Stock Report

Last Price

US$72.15

Market Cap

US$18.0b

7D

-0.4%

1Y

9.9%

Updated

02 Oct, 2022

Data

Company Financials +
PFG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health3/6
Dividends5/6

PFG Stock 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$72.15
52 Week HighUS$80.36
52 Week LowUS$61.05
Beta1.3
1 Month Change-3.08%
3 Month Change6.46%
1 Year Change9.93%
3 Year Change31.78%
5 Year Change8.25%
Change since IPO243.57%

Recent News & Updates

Aug 18

Principal Financial Group cut to Neutral at Credit Suisse on valuation

Credit Suisse analyst Andrew Kligerman downgraded Principal Financial Group (NASDAQ:PFG) to Neutral from Outperform Thursday on its limited opportunities for multiple expansion. PFG stock has dipped 1.1% in premarket trading. PFG is currently trading at 10.6x Credit Suisse's estimated 2023 EPS (or 10.9x consensus estimates) compared with the peer average of 8.0x. PFG's closest peer Voya (VOYA) trades at 8.2x CS/consensus estimated 2023 EPS, Kligerman wrote in a note to clients. See PFG's stock performance vs. VOYA's in this chart. The analyst favors Voya (VOYA), "given the wider valuation gap that has emerged." He still likes Principal's (PFG) business mix and strategy, though, favoring its focus on small- to medium-sized retirement and employee benefits related businesses, combined with its shift to higher multiple capital light businesses. Kligerman's Neutral rating agrees with the Quant rating of Hold and the average Wall Street rating. SA contributor the Wolf Report explains why it's not yet time to go back to Principal Financial Group (PFG).

Shareholder Returns

PFGUS InsuranceUS Market
7D-0.4%-1.1%-2.5%
1Y9.9%-3.8%-23.2%

Return vs Industry: PFG exceeded the US Insurance industry which returned -3.8% over the past year.

Return vs Market: PFG exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is PFG's price volatile compared to industry and market?
PFG volatility
PFG Average Weekly Movement4.2%
Insurance Industry Average Movement4.5%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: PFG is less volatile than 75% 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
187918,600Dan 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 through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments.

Principal Financial Group Fundamentals Summary

How do Principal Financial Group's earnings and revenue compare to its market cap?
PFG fundamental statistics
Market CapUS$17.98b
Earnings (TTM)US$4.27b
Revenue (TTM)US$17.28b

4.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFG income statement (TTM)
RevenueUS$17.28b
Cost of RevenueUS$6.74b
Gross ProfitUS$10.54b
Other ExpensesUS$6.27b
EarningsUS$4.27b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)17.12
Gross Margin60.98%
Net Profit Margin24.69%
Debt/Equity Ratio42.3%

How did PFG perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

16%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PFG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PFG?

Other financial metrics that can be useful for relative valuation.

PFG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA3.5x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

How does PFG's PE Ratio compare to its peers?

PFG PE Ratio vs Peers
The above table shows the PE ratio for PFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11x
PRU Prudential Financial
15.3x21.2%US$31.9b
AFL Aflac
8.2x-6.6%US$35.5b
GL Globe Life
13.7x8.7%US$9.7b
UNM Unum Group
7x3.5%US$7.8b
PFG Principal Financial Group
4.2x-26.3%US$18.0b

Price-To-Earnings vs Peers: PFG is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (11x).


Price to Earnings Ratio vs Industry

How does PFG's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Earnings vs Industry: PFG is good value based on its Price-To-Earnings Ratio (4.2x) compared to the US Insurance industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is PFG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.2x
Fair PE Ratio9.2x

Price-To-Earnings vs Fair Ratio: PFG is good value based on its Price-To-Earnings Ratio (4.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.2x).


Share Price vs Fair Value

What is the Fair Price of PFG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PFG ($72.15) is trading below our estimate of fair value ($139.54)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Principal Financial Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-26.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFG's earnings are forecast to decline over the next 3 years (-26.3% per year).

Earnings vs Market: PFG's earnings are forecast to decline over the next 3 years (-26.3% per year).

High Growth Earnings: PFG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PFG's revenue (1.6% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: PFG's revenue (1.6% 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 (12.1%).


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Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PFG has high quality earnings.

Growing Profit Margin: PFG's current net profit margins (24.7%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: PFG's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: PFG's earnings growth over the past year (168.8%) exceeds its 5-year average (2.4% per year).

Earnings vs Industry: PFG earnings growth over the past year (168.8%) exceeded the Insurance industry -22.8%.


Return on Equity

High ROE: PFG's Return on Equity (38.1%) is considered high.


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Financial Health

How is Principal Financial Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PFG's short term assets ($33.4B) exceed its short term liabilities ($25.9B).

Long Term Liabilities: PFG's short term assets ($33.4B) do not cover its long term liabilities ($255.9B).


Debt to Equity History and Analysis

Debt Level: PFG's net debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: PFG's debt to equity ratio has increased from 28.6% to 42.3% over the past 5 years.

Debt Coverage: PFG's debt is well covered by operating cash flow (60.9%).

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


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.55%

Current Dividend Yield

Dividend Yield vs Market

Principal Financial Group Dividend Yield vs Market
How does Principal Financial Group dividend yield compare to the market?
SegmentDividend Yield
Company (Principal Financial Group)3.5%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Insurance)2.5%
Analyst forecast in 3 Years (Principal Financial Group)3.9%

Notable Dividend: PFG's dividend (3.55%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: PFG's dividend (3.55%) is low compared to the top 25% of dividend payers in the US market (4.73%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (15.6%), PFG's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.9%), PFG's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Dan Houston (60 yo)

7.92yrs

Tenure

US$17,566,163

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

Dan Houston's Compensation vs Principal Financial Group Earnings
How has Dan Houston's remuneration changed compared to Principal Financial Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$4b

Mar 31 2022n/an/a

US$2b

Dec 31 2021US$18mUS$1m

US$2b

Sep 30 2021n/an/a

US$2b

Jun 30 2021n/an/a

US$2b

Mar 31 2021n/an/a

US$2b

Dec 31 2020US$16mUS$890k

US$1b

Sep 30 2020n/an/a

US$1b

Jun 30 2020n/an/a

US$1b

Mar 31 2020n/an/a

US$1b

Dec 31 2019US$15mUS$900k

US$1b

Sep 30 2019n/an/a

US$1b

Jun 30 2019n/an/a

US$2b

Mar 31 2019n/an/a

US$2b

Dec 31 2018US$12mUS$900k

US$2b

Sep 30 2018n/an/a

US$2b

Jun 30 2018n/an/a

US$3b

Mar 31 2018n/an/a

US$2b

Dec 31 2017US$12mUS$881k

US$2b

Sep 30 2017n/an/a

US$2b

Jun 30 2017n/an/a

US$1b

Mar 31 2017n/an/a

US$1b

Dec 31 2016US$9mUS$795k

US$1b

Sep 30 2016n/an/a

US$1b

Jun 30 2016n/an/a

US$1b

Mar 31 2016n/an/a

US$1b

Dec 31 2015US$5mUS$736k

US$1b

Compensation vs Market: Dan's total compensation ($USD17.57M) is above average for companies of similar size in the US market ($USD13.04M).

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 (3.3 years average tenure).


Board Members

Experienced Board: PFG's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PFG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGS:PFG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Sep 22SellUS$191,967Wee Yee CheongIndividual2,447US$78.45
22 Aug 22SellUS$692,550Roberto WalkerIndividual9,000US$76.95
15 Aug 22SellUS$495,063Renee SchaafIndividual6,250US$79.21
09 Aug 22SellUS$1,093,500Sandra HeltonIndividual15,000US$72.90
25 May 22SellUS$710,000Wee Yee CheongIndividual10,000US$71.00

Ownership Breakdown

What is the ownership structure of PFG?
Owner TypeNumber of SharesOwnership Percentage
State or Government111,6610.04%
Individual Insiders1,055,8340.4%
General Public58,575,14423.5%
Institutions189,494,69676.0%

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


Top Shareholders

Top 25 shareholders own 62.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.48%
The Vanguard Group, Inc.
28,618,913$2.1b-1.41%0.05%
9.02%
BlackRock, Inc.
22,489,566$1.6b-3.28%0.04%
7.29%
Nissay Asset Management Corporation
18,164,371$1.3b-0.01%1.98%
6.1%
Managed Account Advisors LLC
15,205,628$1.1b44.27%0.31%
4.82%
State Street Global Advisors, Inc.
12,001,678$865.9m-6.73%0.05%
4.77%
Capital Research and Management Company
11,889,843$857.9m-8.92%0.06%
1.98%
Geode Capital Management, LLC
4,940,995$356.5m-3.49%0.05%
1.7%
Charles Schwab Investment Management, Inc.
4,231,161$305.3m4.37%0.08%
1.64%
Northern Trust Global Investments
4,075,144$294.0m-0.94%0.06%
1.59%
Wellington Management Group LLP
3,968,048$286.3m85.71%0.05%
1.56%
Merrill Lynch & Co. Inc., Banking Investments
3,876,497$279.7m25.52%0.15%
1.47%
Dimensional Fund Advisors LP
3,661,125$264.2m0.13%0.07%
1.12%
Norges Bank Investment Management
2,800,722$202.1m0%0.03%
1.01%
Invesco Capital Management LLC
2,520,092$181.8m3.35%0.14%
0.81%
Legal & General Investment Management Limited
2,012,402$145.2m4.15%0.04%
0.79%
BNY Mellon Asset Management
1,964,800$141.8m3.87%0.03%
0.75%
Columbia Management Investment Advisers, LLC
1,874,264$135.2m-4.87%0.04%
0.73%
Eaton Vance Management
1,814,788$130.9m4.43%0.05%
0.6%
City National Rochdale, LLC
1,489,485$107.5m56.96%0.42%
0.6%
UBS Asset Management
1,483,473$107.0m4.11%0.02%
0.58%
Morgan Stanley, Investment Banking and Brokerage Investments
1,445,316$104.3m-62.81%0.02%
0.56%
Goldman Sachs Asset Management, L.P.
1,398,757$100.9m-7.92%0.04%
0.55%
Mairs and Power, Inc.
1,379,293$99.5m-3.26%1.2%
0.45%
Swiss National Bank, Asset Management Arm
1,133,116$81.8m-1.31%0.05%
0.41%
Old Republic International Corp., Asset Management Arm
1,010,000$72.9m-6.91%1.84%

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
  • Implied Market Cap: US$17.982b
  • Shares outstanding: 249.24m
  • Website: https://www.principal.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2001
PG4DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2001
0KO5LSE (London Stock Exchange)YesCommon StockGBUSDOct 2001
PFG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2001
P1FG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.