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
6 star dividend payer and good value.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StIf You Had Bought Prudential Financial (NYSE:PRU) Shares A Year Ago You'd Have Earned 93% Returns
1 month ago | Simply Wall StWhat Kind Of Shareholders Hold The Majority In Prudential Financial, Inc.'s (NYSE:PRU) Shares?
2 months ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Prudential Financial, Inc. (NYSE:PRU)
Is Prudential Financial 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: 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).
How is Prudential Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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%).
How has Prudential Financial performed over the past 5 years?
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.
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 ($802.0B).
Debt to Equity History and Analysis
Debt Level: PRU's debt to equity ratio (58.6%) is considered high.
Reducing Debt: PRU's debt to equity ratio has reduced from 72.8% to 58.6% over the past 5 years.
Debt Coverage: PRU's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if PRU's interest payments on its debt are well covered by EBIT.
What is Prudential Financial current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PRU's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: PRU's dividend (4.26%) is in the top 25% of dividend payers in the US market (3.42%)
Stability and Growth of Payments
Stable Dividend: PRU's dividends per share have been stable in the past 10 years.
Growing Dividend: PRU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (66.1%), PRU's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PRU's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Charlie Lowrey (62 yo)
Mr. Charles Frederick Lowrey, Jr., also known as Charlie, has been Chief Executive Officer, President and Director of Prudential Financial, Inc. since December 01, 2018 and has been its Chairman of the Boa...
CEO Compensation Analysis
Compensation vs Market: Charlie's total compensation ($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.
Experienced Management: PRU's management team is considered experienced (2.4 years average tenure).
Experienced Board: PRU's board of directors are considered experienced (5.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Prudential Financial, Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Prudential Financial, Inc.
- 751 Broad Street
- New Jersey
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/17 23:32|
|End of Day Share Price||2021/05/17 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.