NYSE:PRU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued 6 star dividend payer.

Risks

  • Prudential Financial has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.5%

NYSE:PRU

-2.3%

US Insurance

-1.6%

US Market


1 Year Return

-19.7%

NYSE:PRU

5.6%

US Insurance

-3.0%

US Market

PRU underperformed the Insurance industry which returned 5.6% over the past year.

PRU underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

PRUIndustryMarket
7 Day-3.5%-2.3%-1.6%
30 Day-22.8%-5.9%-5.7%
90 Day-19.0%-0.6%0.2%
1 Year-16.2%-19.7%8.1%5.6%-0.8%-3.0%
3 Year13.3%2.0%40.6%30.0%38.1%29.1%
5 Year4.5%-11.8%60.5%41.5%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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

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


Price Based on Expected Growth

Prudential Financial is good value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Prudential Financial expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Prudential Financial's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

Prudential Financial's earnings are expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).

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

Prudential Financial's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Prudential Financial performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

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


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Prudential Financial's financial position?


Financial Position Analysis

Prudential Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Prudential Financial's level of debt (57.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (109% vs 57.5% today).

Debt is well covered by operating cash flow (65.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

5.40%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Prudential Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Prudential Financial's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

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 (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Charlie Lowrey (61yo)

0.7yrs

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

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

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


Management Age and Tenure

0.7yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Prudential Financial management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the Prudential Financial board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,238,25018 Mar 19
Nicholas Silitch
EntityIndividual
Shares13,000
Max PriceUS$95.25
SellUS$614,92219 Feb 19
Stephen Pelletier
EntityIndividual
Role
Senior Key Executive
Executive VP & COO of U.S. Businesses
Shares6,532
Max PriceUS$94.14
BuyUS$20,88312 Dec 18
Sandra Pianalto
EntityIndividual
Role
Member of the Board of Directors
Director
Shares250
Max PriceUS$83.53

Ownership Breakdown


Management Team

  • Mark Grier (66yo)

    Vice Chairman & Director

    • Tenure: 17.0yrs
    • Compensation: US$15.22m
  • Rob Falzon (59yo)

    Vice Chairman

    • Tenure: 0.0yrs
    • Compensation: US$8.11m
  • Charlie Lowrey (61yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$10.36m
  • Steve Pelletier (65yo)

    Executive VP & COO of U.S. Businesses

    • Tenure: 5.3yrs
    • Compensation: US$18.53m
  • Ken Tanji (53yo)

    Executive VP & CFO

    • Tenure: 0.7yrs
    • Compensation: US$2.30m
  • Darin Arita

    Senior VP and Head of Investor Relations

    • Tenure: 0.0yrs
  • Scott Sleyster (59yo)

    Executive VP & COO of International Businesses

    • Tenure: 0.0yrs
    • Compensation: US$5.22m
  • Stacey Goodman (56yo)

    Chief Information Officer & Executive VP

    • Tenure: 0.1yrs
  • Timothy Schmidt (60yo)

    Senior VP & Chief Investment Officer

    • Tenure: 0.7yrs
  • Robert Axel

    Senior VP

    • Tenure: 5.4yrs

Board Members

  • Karl Krapek (70yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$335.00k
  • Chris Poon (67yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$322.50k
  • Doug Scovanner (63yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$335.00k
  • Mark Grier (66yo)

    Vice Chairman & Director

    • Tenure: 17.0yrs
    • Compensation: US$15.22m
  • Gill Casellas (66yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$328.75k
  • Rob Falzon (59yo)

    Vice Chairman

    • Tenure: 0.0yrs
    • Compensation: US$8.11m
  • Charlie Lowrey (61yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$10.36m
  • Martina Therese Hund-Mejean (58yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$300.00k
  • Sandra Pianalto (64yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$308.75k
  • Tom Baltimore (56yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$405.00k

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$32.379b
  • Shares outstanding: 409.18m
  • 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

Biography

Prudential Financial, Inc., through its subsidiaries, provides insurance, investment management, and other financial products and services. It operates through PGIM, U.S. Workplace Solutions, U.S. Individu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:41
End of Day Share Price2019/08/23 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.