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Market Cap

US$42.4b

Last Updated

2021/05/17 23:32 UTC

Data Sources

Company Financials +

Executive Summary

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. More Details


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PRU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

1.2%

PRU

-0.8%

US Insurance

-0.6%

US Market


1 Year Return

89.0%

PRU

56.2%

US Insurance

46.0%

US Market

Return vs Industry: PRU exceeded the US Insurance industry which returned 62.9% over the past year.

Return vs Market: PRU exceeded the US Market which returned 50.8% over the past year.


Shareholder returns

PRUIndustryMarket
7 Day1.2%-0.8%-0.6%
30 Day9.2%4.4%-1.8%
90 Day30.4%14.9%0.2%
1 Year101.6%89.0%60.2%56.2%48.4%46.0%
3 Year22.1%6.2%41.9%31.4%60.5%50.4%
5 Year70.9%39.8%85.9%62.9%125.9%100.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Prudential Financial undervalued compared to its fair value and its price relative to the market?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRU ($107.96) is trading below our estimate of fair value ($136.41)

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


Price To Earnings Ratio

PE vs Industry: PRU is poor value based on its PE Ratio (16x) compared to the US Insurance industry average (11.2x).

PE vs Market: PRU is good value based on its PE Ratio (16x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: PRU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PRU is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (1.2x).


Future Growth

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

-13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRU's earnings are forecast to decline over the next 3 years (-13.7% per year).

Earnings vs Market: PRU's earnings are forecast to decline over the next 3 years (-13.7% per year).

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

Revenue vs Market: PRU's revenue (2.7% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: PRU's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRU's Return on Equity is forecast to be low in 3 years time (5%).


Past Performance

How has Prudential Financial performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRU has a high level of non-cash earnings.

Growing Profit Margin: PRU's current net profit margins (4.4%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: PRU's earnings have declined by 21.1% per year over the past 5 years.

Accelerating Growth: PRU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PRU had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Insurance industry average (46.2%).


Return on Equity

High ROE: PRU's Return on Equity (5%) is considered low.


Financial Health

How is Prudential Financial's financial position?


Financial Position Analysis

Short Term Liabilities: PRU's short term assets ($33.0B) do not cover its short term liabilities ($46.5B).

Long Term Liabilities: PRU's short term assets ($33.0B) do not cover its long term liabilities ($802.0B).


Debt to Equity History and Analysis

Debt Level: PRU's debt to equity ratio (58.6%) is considered high.

Reducing Debt: PRU's debt to equity ratio has reduced from 72.8% to 58.6% over the past 5 years.

Debt Coverage: PRU's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Dividend

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

4.26%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 18 2021Ex Dividend DateMay 24 2021Dividend Pay DateJun 17 202124 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PRU's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: PRU's dividend (4.26%) is in the top 25% of dividend payers in the US market (3.42%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.1%), PRU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRU's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Charlie Lowrey (62 yo)

2.42yrs

Tenure

US$14,990,254

Compensation

Mr. Charles Frederick Lowrey, Jr., also known as Charlie, has been Chief Executive Officer, President and Director of Prudential Financial, Inc. since December 01, 2018 and has been its Chairman of the Boa...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD14.99M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: PRU's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: PRU's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PRU insiders have only sold shares 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

Prudential Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prudential Financial, Inc.
  • Ticker: PRU
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$42.426b
  • Shares outstanding: 394.00m
  • Website: https://www.prudential.com

Number of Employees


Location

  • Prudential Financial, Inc.
  • 751 Broad Street
  • Newark
  • New Jersey
  • 7102
  • United States

Listings


Biography

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates throug...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 23:32
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
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.