Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide.
Very undervalued 6 star dividend payer.
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
Stable Share Price: PFG's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: PFG underperformed the US Insurance industry which returned -20.5% over the past year.
Return vs Market: PFG underperformed the US Market which returned -12.7% over the past year.
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
6 days ago | Simply Wall StWhat Is Principal Financial Group's (NASDAQ:PFG) P/E Ratio After Its Share Price Tanked?
2 weeks ago | Simply Wall StIndependent Director Charles Gelatt Just Bought Shares In Principal Financial Group, Inc. (NASDAQ:PFG)
2 weeks ago | Simply Wall StHow Does Principal Financial Group's (NASDAQ:PFG) P/E Compare To Its Industry, After The Share Price Drop?
Is Principal Financial Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PFG ($32.6) is trading below our estimate of fair value ($112.34)
Significantly Below Fair Value: PFG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PFG is good value based on its PE Ratio (6.5x) compared to the Insurance industry average (8.8x).
PE vs Market: PFG is good value based on its PE Ratio (6.5x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: PFG is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: PFG is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (0.8x).
How is Principal Financial Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PFG's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).
Earnings vs Market: PFG's earnings (7.2% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: PFG's earnings are forecast to grow, but not significantly.
Revenue vs Market: PFG's revenue (5.4% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: PFG's revenue (5.4% 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 (11.4%).
How has Principal Financial Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PFG has high quality earnings.
Growing Profit Margin: PFG's current net profit margins (8.6%) are lower than last year (10.9%).
Past Earnings Growth Analysis
Earnings Trend: PFG's earnings have grown by 9.3% per year over the past 5 years.
Accelerating Growth: PFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PFG had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Insurance industry average (43.7%).
Return on Equity
High ROE: PFG's Return on Equity (9.7%) is considered low.
How is Principal Financial Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: PFG has a low level of unsold assets or inventory.
Debt Coverage by Assets: PFG's debt is covered by short term assets (assets are 1.8x debt).
Financial Institutions Analysis
Asset Level: PFG's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if PFG has a sufficient allowance for bad loans.
Low Risk Liabilities: PFG reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if PFG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: PFG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if PFG has an appropriate level of bad loans.
What is Principal Financial Group's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PFG's dividend (6.87%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: PFG's dividend (6.87%) is in the top 25% of dividend payers in the US market (5.49%)
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 (43.6%), 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 (40.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Houston (57yo)
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 ($USD12.23M) is above average for companies of similar size in the US market ($USD7.36M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||3yrs||US$3.45m||0.045% $4.0m|
|President of Principal Global Asset Management Business||1.5yrs||US$2.56m||0.026% $2.4m|
|President & CEO of Principal International||2.17yrs||US$2.86m||0.025% $2.2m|
|Chief Executive Officer of Principal Global Investors||1.5yrs||US$3.68m||0.029% $2.6m|
|Executive VP||18.17yrs||no data||0.032% $2.8m|
|Vice President of Investor Relations||9.92yrs||no data||no data|
|Senior VP & Chief Compliance Officer||1.17yrs||no data||no data|
|Executive VP & General Counsel||no data||no data||no data|
|Senior VP & Chief Marketing Officer||0.67yr||no data||no data|
Experienced Management: PFG's management team is considered experienced (2.2 years average tenure).
|Independent Director||18.83yrs||US$284.95k||0.00040% $35.8k|
|Independent Director||19yrs||US$282.45k||0.00049% $43.9k|
|Independent Director||13.83yrs||US$269.95k||0.0036% $326.0k|
|Independent Director||18.92yrs||US$289.95k||0.00096% $86.0k|
|Independent Director||5yrs||US$267.45k||no data|
|Independent Director||18.92yrs||US$284.95k||0.00010% $9.0k|
|Independent Director||18.92yrs||US$264.95k||0.071% $6.3m|
|Lead Director||no data||US$284.95k||no data|
|Independent Director||4.58yrs||US$264.95k||no data|
Experienced Board: PFG's board of directors are seasoned and experienced ( 18.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PFG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Principal Financial Group, Inc.'s company bio, 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
- Market Cap: US$8.955b
- Shares outstanding: 274.69m
- 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|
|P1FG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 COM||BR||BRL||Jan 2020|
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. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, and pension risk transfer services; individual retirement accounts and payroll deduction plans; investment only products; and mutual funds, individual annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation and income annuity products, mutual funds, asset management, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/30 02:05|
|End of Day Share Price||2020/03/27 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.