NasdaqGS:PFG

Stock Analysis Report

Principal Financial Group

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Principal Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

NasdaqGS:PFG

1.6%

US Insurance

2.9%

US Market


1 Year Return

-2.2%

NasdaqGS:PFG

8.2%

US Insurance

0.2%

US Market

PFG underperformed the Insurance industry which returned 8.2% over the past year.

PFG underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

PFGIndustryMarket
7 Day3.7%1.6%2.9%
30 Day-9.6%-2.6%-2.3%
90 Day-0.2%1.9%3.1%
1 Year1.9%-2.2%10.9%8.2%2.4%0.2%
3 Year25.0%12.7%44.1%33.2%41.7%32.4%
5 Year18.2%0.3%64.0%44.5%55.1%37.9%

Price Volatility Vs. Market

How volatile is Principal Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Principal Financial Group undervalued based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Principal Financial Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Principal Financial Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Principal Financial Group is good value based on earnings compared to the US Insurance industry average.

Principal Financial Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Principal Financial Group is poor value based on expected growth next year.


Price Based on Value of Assets

Principal Financial Group is good value based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Principal Financial Group's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

Principal Financial Group's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

Principal Financial Group's revenue growth is positive but not above the United States of America market average.

Principal Financial Group's earnings growth is positive but not above the United States of America market average.

Principal Financial Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Principal Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Principal Financial Group's year on year earnings growth rate has been positive over the past 5 years.

Principal Financial Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Principal Financial Group's 1-year earnings growth is negative, it can't be compared to the US Insurance industry average.


Return on Equity

Principal Financial Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Principal Financial Group used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Principal Financial Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Principal Financial Group's financial position?


Financial Position Analysis

Principal Financial Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Principal Financial Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Principal Financial Group's level of debt (26.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (30.4% vs 26.9% today).

Debt is well covered by operating cash flow (159.7%, greater than 20% of total debt).

Principal Financial Group earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

4.29%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Principal Financial Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Principal Financial Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Principal Financial Group's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

What is the CEO of Principal Financial Group's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Dan Houston (57yo)

4.0yrs

Tenure

US$12,227,017

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's remuneration is about average for companies of similar size in United States of America.

Dan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

60yo

Average Age

The tenure for the Principal Financial Group management team is about average.


Board Age and Tenure

12.8yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Principal Financial Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,202,50006 Nov 18
Charles Gelatt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$48.10

Ownership Breakdown


Management Team

  • Karen Shaff (64yo)

    Executive VP

    • Tenure: 18.3yrs
  • Gary Scholten (61yo)

    Executive VP

    • Tenure: 16.8yrs
  • Deanna Strable-Soethout (50yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$3.45m
  • Pat Halter (59yo)

    CEO & President of Principal Global Investors

    • Tenure: 0.9yrs
    • Compensation: US$3.68m
  • Dan Houston (57yo)

    Chairman

    • Tenure: 4.0yrs
    • Compensation: US$12.23m
  • Tim Dunbar (61yo)

    President of Principal Global Asset Management Business

    • Tenure: 0.9yrs
    • Compensation: US$2.56m
  • John Egan (57yo)

    Vice President of Investor Relations

    • Tenure: 9.3yrs
  • Luis Valdés (61yo)

    President & CEO of Principal International

    • Tenure: 8.4yrs
    • Compensation: US$2.86m
  • Amy Hartnett

    Director of Business Development

    • Tenure: 4.3yrs
  • Betsy Happe

    Senior VP & Chief Compliance Officer

    • Tenure: 0.6yrs

Board Members

  • Sandra Helton (69yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$284.95k
  • Betsy Bernard (64yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$282.45k
  • Michael Dan (68yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$269.95k
  • Liz Tallett (70yo)

    Lead Director

    • Tenure: 12.3yrs
    • Compensation: US$289.95k
  • Roger Hochschild (54yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$267.45k
  • Jocelyn Carter-Miller (61yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$284.95k
  • Charles Gelatt (71yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$264.95k
  • Scott Mills (51yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$284.95k
  • Blair Pickerell (63yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: US$264.95k
  • Dan Houston (57yo)

    Chairman

    • Tenure: 4.0yrs
    • Compensation: US$12.23m

Company Information

Principal Financial Group, Inc.'s company bio, 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$15.080b
  • Shares outstanding: 278.80m
  • 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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:41
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.