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PRU

Prudential Financial NYSE:PRU Stock Report

Last Price

US$102.99

Market Cap

US$38.3b

7D

7.3%

1Y

-4.6%

Updated

11 Aug, 2022

Data

Company Financials +
PRU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends6/6

PRU Stock Overview

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

Prudential Financial, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prudential Financial
Historical stock prices
Current Share PriceUS$102.99
52 Week HighUS$124.22
52 Week LowUS$89.73
Beta1.41
1 Month Change7.26%
3 Month Change1.78%
1 Year Change-4.60%
3 Year Change28.59%
5 Year Change0.32%
Change since IPO251.50%

Recent News & Updates

Aug 09

Prudential Financial declares $1.20 dividend

Prudential Financial (NYSE:PRU) declares $1.20/share quarterly dividend, in line with previous. Forward yield 4.87% Payable Sept. 15; for shareholders of record Aug. 23; ex-div Aug. 22. See PRU Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 01

Prudential Financial Q2 2022 Earnings Preview

Prudential Financial (NYSE:PRU) is scheduled to announce Q2 earnings results on Tuesday, August 2nd, after market close. The The financial services company consensus EPS Estimate is $2.33 (-38.5% Y/Y) and the consensus Revenue Estimate is $12.27B. Q2 positive factors: higher net investment spread results, more favorable underwriting results and lower expenses partially offset by lower net fee income amid equity market depreciation. The SA Quant rating and Wall St. average rating is hold and SA Authors rating is buy. PRU's Seeking Alpha Quant rating of 3.33 ranks 8th Life and Health Insurance stocks. Over the last 2 years, PRU has beaten EPS estimates 100% of the time and has beaten revenue estimates 0% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 10 downward. Revenue estimates have seen 0 upward revisions and 6 downward.

Jul 24

Prudential Is A Solid Choice For Dividend Growth Investors

Prudential is an attractively valued insurance company. Investors in Prudential can enjoy a 5% dividend yield that is growing. Investors should consider some exposure to Prudential for income. Introduction As a dividend growth investor, I am constantly looking for additional income-producing assets that can supplement my current income. I use a variety of stocks in various sectors as I seek potential opportunities. I add to companies I own and start new positions when I seek more diversification. The current volatility may serve as an opportunity for investors. In this article, I will look at a financial company. In my portfolio, I own banks, asset managers, and insurers. This article will analyze Prudential (PRU), a prominent American insurer offering client asset management services. I have owned the stock since 2020 and am considering adding more to my current position. I will analyze the company using my methodology for analyzing dividend growth stocks. I am using the same method to make it easier to compare researched companies. I will examine the company's fundamentals, valuation, growth opportunities, and risks. I will then try to determine if it's a good investment. Seeking Alpha's company overview shows that: Prudential Financial provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through eight segments: PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block. Fundamentals Revenues have increased by 33% over the last decade. Sales have increased by less than 3% annually over the past ten years. Prudential constantly buys and sells assets, focusing more on the bottom line growth. The company grows organically by increasing prices, selling more services, and through M&A activity, usually at a limited size, to improve its positioning. In the future, analysts' consensus, as seen on Seeking Alpha, expects Prudential to keep growing sales at an annual rate of ~2% following this year's 10% decline due to weaker capital markets. Data by YCharts The EPS (earnings per share) has increased significantly over the same period. The volatility we see is due to the volatility in the stock market that affects returns. Prudential has been increasing EPS by achieving sales growth, buying back stock, and improving the margins by lowering expenses and focusing on assets with high returns while divesting others. In the future, analysts' consensus, as seen on Seeking Alpha, expects Prudential to keep growing earnings at an annual rate of ~10% following this year's 10% decline due to weaker capital markets. Data by YCharts The dividend is one point where Prudential shines. The current dividend yield is 5%, following the latest 4% increase. It is a yield that surpasses the ten-year treasury yield significantly. The dividend is also safe as the company pays less than 40% of its EPS in dividends. Even the forecasted decline due to market volatility will likely not jeopardize the dividend, and investors should expect the 15th increase in a row in 2023. Data by YCharts In addition to the significant dividend payments, the company also returns capital to shareholders by repurchasing its shares. Buybacks are an efficient way to return capital to shareholders, mainly in growing companies. Buybacks reduce the number of shares and thus support EPS growth. Prudential has decreased the number of shares by almost 20% in the last decade. The buybacks helped achieve significant EPS growth. Data by YCharts Valuation The P/E (price to earnings) ratio of Prudential has increased over the last twelve months. The forward P/E ratio using the forecasted EPS for 2022 is just shy of 9. It has increased in the previous year as the company is predicted to show lower EPS due to the declining capital markets. Yet, even under the soft guidance, a P/E ratio of 9 seems like a decent valuation. The current valuation allows Prudential to offer such a high and safe dividend. Data by YCharts The graph below from Fastgraphs emphasizes that Prudential is trading below its average valuation. Over the last two decades, the company's average P/E ratio was 10.9, significantly higher than the current 9. The growth rate over the previous twenty years was 10.5%. It is similar to the forecasted growth following a weaker 2022, which is already priced in the current share price. Fastgraphs To conclude, Prudential is one of the largest insurers in the United States and seems like a highly stable company. The company has strong fundamentals with top and bottom line growth, leading to dividends and buybacks to shareholders. In addition, the company is attractively valued compared to its historical valuation. Opportunities Diversification is a key growth opportunity. The company gains 39% of its sales from the international markets. Most prominently Japan and Brazil. Brazil is a growing emerging market, and Japan is the third largest economy in the world. It allows the company to use its scale to offer its diversified portfolio to many more clients and capitalize on the vast portfolio of products and services in insurance and asset management. The superb execution of the company is a great opportunity. There are many companies with significant assets. Executing business plans using these assets is another challenge. Prudential showed strong execution capabilities during the pandemic when it dealt with a declining share price and high uncertainty. It also proved to be the case when the company announced a cost-cutting plan and managed to deliver. Despite the challenging environment, it has saved $680M out of the planned $750M.

Shareholder Returns

PRUUS InsuranceUS Market
7D7.3%5.7%1.3%
1Y-4.6%3.0%-11.7%

Return vs Industry: PRU underperformed the US Insurance industry which returned 1.4% over the past year.

Return vs Market: PRU exceeded the US Market which returned -11.6% over the past year.

Price Volatility

Is PRU's price volatile compared to industry and market?
PRU volatility
PRU Average Weekly Movement4.2%
Insurance Industry Average Movement5.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
187540,916Charlie Lowreyhttps://www.prudential.com

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 through eight segments: PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block. The company offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account.

Prudential Financial, Inc. Fundamentals Summary

How do Prudential Financial's earnings and revenue compare to its market cap?
PRU fundamental statistics
Market CapUS$38.31b
Earnings (TTM)US$2.09b
Revenue (TTM)US$64.30b

18.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRU income statement (TTM)
RevenueUS$64.30b
Cost of RevenueUS$47.54b
Gross ProfitUS$16.76b
Other ExpensesUS$14.67b
EarningsUS$2.09b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)5.62
Gross Margin26.06%
Net Profit Margin3.25%
Debt/Equity Ratio118.1%

How did PRU perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

85%

Payout Ratio