NYSE:PRU

Stock Analysis Report

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Executive Summary

Prudential Financial, Inc., through its subsidiaries, provides insurance, investment management, and other financial products and services. More Details


Snowflake Analysis

Established dividend payer and fair 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

PRU

3.0%

US Insurance

0.4%

US Market


1 Year Return

-26.2%

PRU

-9.5%

US Insurance

17.8%

US Market

Return vs Industry: PRU underperformed the US Insurance industry which returned -9.5% over the past year.

Return vs Market: PRU underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

PRUIndustryMarket
7 Day4.8%3.0%0.4%
30 Day10.7%8.2%6.1%
90 Day7.3%3.4%8.9%
1 Year-21.8%-26.2%-7.0%-9.5%20.5%17.8%
3 Year-29.6%-38.4%3.0%-4.4%42.3%32.9%
5 Year-0.3%-18.3%39.5%21.9%84.2%63.4%

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?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRU ($68.73) is trading below our estimate of fair value ($117.12)

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


Price To Earnings Ratio

PE vs Industry: PRU is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: PRU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRU is good value based on its PB Ratio (0.4x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Prudential Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

100.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: PRU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PRU's is expected to become profitable in the next 3 years.

Revenue vs Market: PRU's revenue (1.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PRU's revenue (1.5% 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 (8.1%).


Next Steps

Past Performance

How has Prudential Financial performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRU is currently unprofitable.

Growing Profit Margin: PRU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRU is unprofitable, and losses have increased over the past 5 years at a rate of 4.6% per year.

Accelerating Growth: Unable to compare PRU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRU is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-3.2%).


Return on Equity

High ROE: PRU has a negative Return on Equity (-0.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Prudential Financial's financial position?


Financial Position Analysis

Short Term Liabilities: PRU's short term assets ($42.8B) do not cover its short term liabilities ($64.7B).

Long Term Liabilities: PRU's short term assets ($42.8B) do not cover its long term liabilities ($784.1B).


Debt to Equity History and Analysis

Debt Level: PRU's debt to equity ratio (53.9%) is considered high.

Reducing Debt: PRU's debt to equity ratio has reduced from 108.1% to 53.9% over the past 5 years.

Debt Coverage: PRU's debt is well covered by operating cash flow (69.2%).

Interest Coverage: PRU is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

6.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRU's dividend (6.4%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: PRU's dividend (6.4%) is in the top 25% of dividend payers in the US market (4.56%)


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: PRU is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PRU's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Charlie Lowrey (62 yo)

1.83yrs

Tenure

US$15,132,939

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 Chairman of the Board since Apri ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD15.13M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Charlie's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Lowrey
Chairman1.83yrsUS$15.13m0.020%
$ 5.5m
Robert Falzon
Vice Chair1.75yrsUS$12.08m0.020%
$ 5.4m
Kenneth Tanji
Executive VP & CFO1.83yrsUS$4.87m0.0056%
$ 1.5m
Scott Sleyster
Executive VP & Head of International Businessesno dataUS$7.50m0.015%
$ 4.0m
Timothy Schmidt
Senior VP & Chief Investment Officer1.83yrsno data0.0057%
$ 1.6m
Robert Axel
Senior VP6.58yrsno data0.0016%
$ 436.6k
Stacey Goodman
Chief Information Officer & Executive VP1.25yrsno datano data
Darin Arita
Senior VP and Head of Investor Relationsno datano datano data
Lee Augsburger
Chief Ethics & Compliance Officerno datano datano data
Ann Kappler
Executive VP & General Counsel0.083yrno data0.0017%
$ 469.2k
Theresa Miller
Vice President of Communicationsno datano datano data
Chuck Anderson
Senior Vice President of Business Development5.5yrsno datano data

1.8yrs

Average Tenure

60yo

Average Age

Experienced Management: PRU's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Lowrey
Chairman1.83yrsUS$15.13m0.020%
$ 5.5m
Robert Falzon
Vice Chair1.75yrsUS$12.08m0.020%
$ 5.4m
Karl Krapek
Independent Director16.75yrsUS$335.00k0.0097%
$ 2.6m
Christine Poon
Lead Independent Director0.083yrUS$322.50k0.0029%
$ 797.4k
Douglas Scovanner
Independent Director6.92yrsUS$335.00k0.0030%
$ 824.5k
George Paz
Independent Director4.58yrsUS$305.00k0.00013%
$ 35.3k
Gilbert Casellas
Independent Director19.75yrsUS$324.85k0.00013%
$ 35.3k
Michael Todman
Independent Director4.58yrsUS$305.00k0.00075%
$ 203.4k
Martina Therese Hund-Mejean
Independent Director10yrsUS$305.00k0.000030%
$ 8.1k
Sandra Pianalto
Independent Director5.25yrsUS$306.35k0.00011%
$ 29.8k
Thomas Baltimore
Lead Independent Director3.42yrsUS$405.00k0.00013%
$ 35.3k
Peter Lighte
Independent Director4.58yrsUS$300.00k0.000020%
$ 5.4k

4.6yrs

Average Tenure

64yo

Average Age

Experienced Board: PRU's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PRU insiders have bought more shares than they have sold 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: 1875
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$27.121b
  • Shares outstanding: 394.60m
  • Website: https://www.prudential.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRUNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2001
PRU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2001
PLLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001
0KRXLSE (London Stock Exchange)YesCommon StockGBUSDDec 2001
PLLETLX (Eurotlx)YesCommon StockITEURDec 2001
P1DT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Prudential Financial, Inc., through its subsidiaries, provides insurance, investment management, and other financial products and services. It operates through eight segments: PGIM, Retirement, Group Insur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:32
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.