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
|Historical stock prices|
|Current Share Price||US$72.91|
|52 Week High||US$80.36|
|52 Week Low||US$61.05|
|1 Month Change||-3.70%|
|3 Month Change||9.16%|
|1 Year Change||11.57%|
|3 Year Change||35.75%|
|5 Year Change||10.77%|
|Change since IPO||247.19%|
Recent News & Updates
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).
|PFG||US Insurance||US Market|
Return vs Industry: PFG exceeded the US Insurance industry which returned -3.6% over the past year.
Return vs Market: PFG exceeded the US Market which returned -22.1% over the past year.
|PFG Average Weekly Movement||4.1%|
|Insurance Industry Average Movement||4.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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
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
|PFG fundamental statistics|
Is PFG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PFG income statement (TTM)|
|Cost of Revenue||US$6.74b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 27, 2022
|Earnings per share (EPS)||17.12|
|Net Profit Margin||24.69%|
How did PFG perform over the long term?See historical performance and comparison
3.5%Current Dividend Yield
Is PFG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is PFG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does PFG's PE Ratio compare to its peers?
|PFG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
PRU Prudential Financial
GL Globe Life
UNM Unum Group
PFG Principal Financial Group
Price-To-Earnings vs Peers: PFG is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (11.2x).
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 (4.3x) compared to the US Insurance industry average (13x)
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.
|Current PE Ratio||4.3x|
|Fair PE Ratio||9.2x|
Price-To-Earnings vs Fair Ratio: PFG is good value based on its Price-To-Earnings Ratio (4.3x) 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 ($72.91) is trading below our estimate of fair value ($139.79)
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 lower than the current share price.
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How is Principal Financial Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (7.6% 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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How has Principal Financial Group performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
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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How is Principal Financial Group's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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.
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What is Principal Financial Group current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Principal Financial Group Dividend Yield vs Market|
|Company (Principal Financial Group)||3.5%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Insurance)||2.5%|
|Analyst forecast in 3 Years (Principal Financial Group)||3.8%|
Notable Dividend: PFG's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: PFG's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (4.69%).
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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Houston (60 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$18m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$16m||US$890k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$15m||US$900k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$12m||US$900k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$12m||US$881k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$9m||US$795k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$5m||US$736k|
Compensation vs Market: Dan's total compensation ($USD17.57M) is above average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Experienced Management: PFG's management team is considered experienced (3.2 years average tenure).
Experienced Board: PFG's board of directors are considered experienced (5.5 years average tenure).
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
|13 Sep 22||SellUS$191,967||Wee Yee Cheong||Individual||2,447||US$78.45|
|22 Aug 22||SellUS$692,550||Roberto Walker||Individual||9,000||US$76.95|
|15 Aug 22||SellUS$495,063||Renee Schaaf||Individual||6,250||US$79.21|
|09 Aug 22||SellUS$1,093,500||Sandra Helton||Individual||15,000||US$72.90|
|25 May 22||SellUS$710,000||Wee Yee Cheong||Individual||10,000||US$71.00|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||111,661||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Principal Financial Group, Inc.'s employee growth, exchange listings and data sources
- Name: Principal Financial Group, Inc.
- Ticker: PFG
- Exchange: NasdaqGS
- Founded: 1879
- Industry: Life and Health Insurance
- Sector: Insurance
- Implied Market Cap: US$18.172b
- Shares outstanding: 249.24m
- Website: https://www.principal.com
Number of Employees
- Principal Financial Group, Inc.
- 711 High Street
- Des Moines
- United States
|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|
|PFG *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Oct 2001|
|P1FG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.