NYSE:PRU

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Very undervalued 6 star dividend payer.


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

-2.0%

PRU

-0.9%

US Insurance

0.06%

US Market


1 Year Return

-2.5%

PRU

17.1%

US Insurance

19.3%

US Market

Return vs Industry: PRU underperformed the US Insurance industry which returned 17.1% over the past year.

Return vs Market: PRU underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

PRUIndustryMarket
7 Day-2.0%-0.9%0.06%
30 Day-3.1%2.9%1.7%
90 Day-2.5%6.0%9.0%
1 Year1.9%-2.5%19.9%17.1%21.8%19.3%
3 Year-5.7%-15.8%35.2%24.8%49.5%39.9%
5 Year36.8%14.5%73.0%52.1%73.1%54.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRU ($93.78) is trading below our estimate of fair value ($269.72)

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


Price To Earnings Ratio

PE vs Industry: PRU is good value based on its PE Ratio (9.2x) compared to the Insurance industry average (13.7x).

PE vs Market: PRU is good value based on its PE Ratio (9.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PRU is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PRU is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRU's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).

Earnings vs Market: PRU's earnings (11.7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: PRU's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRU's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: PRU's revenue is forecast to decline over the next 3 years (-1.3% 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 (10.6%).


Next Steps

Past Performance

How has Prudential Financial performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRU has high quality earnings.

Growing Profit Margin: PRU's current net profit margins (6.4%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: PRU's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: PRU's earnings growth over the past year (2.8%) is below its 5-year average (9.9% per year).

Earnings vs Industry: PRU earnings growth over the past year (2.8%) underperformed the Insurance industry 28.7%.


Return on Equity

High ROE: PRU's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Prudential Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PRU has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRU's debt is covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: PRU's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if PRU has a sufficient allowance for bad loans.

Low Risk Liabilities: PRU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PRU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PRU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PRU has an appropriate level of bad loans.


Next Steps

Dividend

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

4.75%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: PRU's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PRU's dividend (4.69%) is in the top 25% of dividend payers in the US market (3.71%)


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 reasonably low payout ratio (39.1%), PRU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRU's dividends in 3 years are forecast to be well covered by earnings (35.4% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Charlie Lowrey (61yo)

1.2yrs

Tenure

US$10,357,458

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 ($USD10.36M) is about average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Lowrey
Chairman1.2yrsUS$10.36m0.020% $7.5m
Kenneth Tanji
Executive VP & CFO1.2yrsUS$2.30m0.0056% $2.1m
Scott Sleyster
Executive VP & Head of International Businesses0yrsUS$5.22m0.015% $5.5m
Stephen Pelletier
0.2yrsUS$18.53m0.0022% $807.9k
Timothy Schmidt
Senior VP & Chief Investment Officer1.2yrsno data0.0057% $2.1m
Robert Axel
Senior VP5.9yrsno data0.0016% $595.7k
Stacey Goodman
Chief Information Officer & Executive VP0.6yrsno datano data
Darin Arita
Senior VP and Head of Investor Relations0yrsno datano data
Lee Augsburger
Chief Ethics & Compliance Officer0yrsno datano data
Timothy Harris
Executive VP & General Counsel4.3yrsno data0.011% $3.9m

1.2yrs

Average Tenure

59yo

Average Age

Experienced Management: PRU's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Lowrey
Chairman1.2yrsUS$10.36m0.020% $7.5m
Karl Krapek
Independent Director16.1yrsUS$335.00k0.0097% $3.6m
Christine Poon
Independent Director13.4yrsUS$322.50k0.0029% $1.1m
Douglas Scovanner
Independent Director6.3yrsUS$335.00k0.0030% $1.1m
Gilbert Casellas
Independent Director19.1yrsUS$328.75k0.00013% $48.4k
Robert Falzon
Vice Chairman1.1yrsUS$8.11m0.020% $7.3m
Martina Therese Hund-Mejean
Independent Director9.3yrsUS$300.00k0.000030% $11.2k
Sandra Pianalto
Independent Director4.6yrsUS$308.75k0.00011% $41.0k
Thomas Baltimore
Lead Independent Director2.8yrsUS$405.00k0.00013% $48.4k
Peter Lighte
Independent Director3.9yrsUS$310.00k0.000020% $7.4k

5.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PRU's board of directors are considered experienced (5.4 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$37.231b
  • Shares outstanding: 397.00m
  • 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 Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block. The company offers asset management public and private fixed income, public equity and real estate, commercial mortgage origination and servicing, and mutual funds and other retail services to institutional, private, and sub-advisory clients, as well as to insurance company separate accounts, government sponsored entities, and the general account. It provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; and group life, long-term and short-term group disability, and group corporate-, bank-, and trust-owned life insurance in the United States, primarily to institutional clients for use in connection with employee plans and affinity groups. The company develops and distributes individual variable and fixed annuity products, principally to the mass affluent and affluent markets; and individual variable, term, and universal life insurance products to the mass middle, mass affluent, and affluent markets in the United States. It also offers individual life insurance, retirement, and related products to the mass affluent and affluent markets in Japan, Korea, and other foreign countries, as well as middle income and mass affluent markets. In addition, the company provides third-party life, health, Medicare, and property and casualty products to retail shoppers through its digital and independent agent channels. It offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks. The company was founded in 1875 and is headquartered in Newark, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:32
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.