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Prudential Financial

NYSE:PRU
Snowflake Description

6 star dividend payer and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRU
NYSE
$39B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Prudential Financial, Inc., through its subsidiaries, provides insurance, investment management, and other financial products and services. The last earnings update was 6 days ago. More info.


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PRU Share Price and Events
7 Day Returns
3.1%
NYSE:PRU
2.3%
US Insurance
1.4%
US Market
1 Year Returns
-12.3%
NYSE:PRU
0.3%
US Insurance
2.3%
US Market
PRU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Prudential Financial (PRU) 3.1% 4.1% 5.4% -12.3% 43% 12.3%
US Insurance 2.3% 5.5% 5.2% 0.3% 36.7% 42.6%
US Market 1.4% 5.6% 5.7% 2.3% 44.2% 40.9%
1 Year Return vs Industry and Market
  • PRU underperformed the Insurance industry which returned 0.3% over the past year.
  • PRU underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
PRU
Industry
5yr Volatility vs Market

Value

 Is Prudential Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Prudential Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Prudential Financial.

NYSE:PRU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= $130.97 * 12.6%
$16.56
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. $130.97
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PRU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.745 (1 + (1- 21%) (89.19%))
1.27
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.27 * 7.27%)
11.96%

Discounted Cash Flow Calculation for NYSE:PRU using Excess Returns Model Model

The calculations below outline how an intrinsic value for Prudential Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:PRU Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.6% – 11.96%) * $130.97)
$0.89
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.89 / (11.96% - 2.73%)
$9.67
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $130.97 + $9.67
$140.64
NYSE:PRU Discount to Share Price
Calculation Result
Value per share (USD) From above. $140.64
Current discount Discount to share price of $94.49
= -1 x ($94.49 - $140.64) / $140.64
32.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Prudential Financial is available for.
Intrinsic value
33%
Share price is $94.49 vs Future cash flow value of $140.64
Current Discount Checks
For Prudential Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Prudential Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Prudential Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PRU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $9.64
NYSE:PRU Share Price ** NYSE (2019-02-21) in USD $94.49
United States of America Insurance Industry PE Ratio Median Figure of 94 Publicly-Listed Insurance Companies 18.01x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 17.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Prudential Financial.

NYSE:PRU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PRU Share Price ÷ EPS (both in USD)

= 94.49 ÷ 9.64

9.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Prudential Financial's expected growth come at a high price?
Raw Data
NYSE:PRU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
15.6%per year
United States of America Insurance Industry PEG Ratio Median Figure of 67 Publicly-Listed Insurance Companies 1.16x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NYSE:PRU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.8x ÷ 15.6%

0.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prudential Financial is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Prudential Financial's assets?
Raw Data
NYSE:PRU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $118.37
NYSE:PRU Share Price * NYSE (2019-02-21) in USD $94.49
United States of America Insurance Industry PB Ratio Median Figure of 116 Publicly-Listed Insurance Companies 1.28x
United States of America Market PB Ratio Median Figure of 5,129 Publicly-Listed Companies 1.87x
NYSE:PRU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PRU Share Price ÷ Book Value per Share (both in USD)

= 94.49 ÷ 118.37

0.8x

* Primary Listing of Prudential Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prudential Financial is good value based on assets compared to the US Insurance industry average.
X
Value checks
We assess Prudential Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Prudential Financial has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Prudential Financial expected to grow at an attractive rate?
  • Prudential Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Prudential Financial's earnings growth is expected to exceed the United States of America market average.
  • Prudential Financial's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PRU Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PRU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 15.6%
NYSE:PRU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -3%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 17.3%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PRU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PRU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 58,780 5,808 3
2020-12-31 57,788 6,093 9
2019-12-31 55,581 5,259 9
NYSE:PRU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 63,304 21,664 4,026
2018-09-30 62,295 14,927 6,915
2018-06-30 62,460 15,409 7,473
2018-03-31 61,588 14,098 7,765
2017-12-31 59,839 13,460 7,768
2017-09-30 57,951 6,527 4,329
2017-06-30 58,599 6,002 3,924
2017-03-31 59,598 10,136 4,349
2016-12-31 58,944 14,876 4,318
2016-09-30 61,275 19,139 4,765
2016-06-30 58,040 23,944 4,410
2016-03-31 57,180 14,694 4,891

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Prudential Financial's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
  • Prudential Financial's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PRU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Prudential Financial Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PRU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 12.94 13.75 11.78 4.00
2019-12-31 12.19 12.80 11.81 4.00
NYSE:PRU Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 9.64
2018-09-30 16.45
2018-06-30 17.68
2018-03-31 18.27
2017-12-31 18.19
2017-09-30 10.10
2017-06-30 9.10
2017-03-31 10.01
2016-12-31 9.85
2016-09-30 10.76
2016-06-30 9.87
2016-03-31 10.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Prudential Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Prudential Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Prudential Financial has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Prudential Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Prudential Financial's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Prudential Financial has delivered over 20% year on year earnings growth in 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.
Earnings and Revenue History
Prudential Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Prudential Financial Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PRU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 63,304.00 4,026.00 10,548.00
2018-09-30 62,295.00 6,915.00 11,829.00
2018-06-30 62,460.00 7,473.00 11,790.00
2018-03-31 61,588.00 7,765.00 11,928.00
2017-12-31 59,839.00 7,768.00 10,592.00
2017-09-30 57,951.00 4,329.00 11,768.00
2017-06-30 58,599.00 3,924.00 11,830.00
2017-03-31 59,598.00 4,349.00 11,871.00
2016-12-31 58,944.00 4,318.00 10,464.00
2016-09-30 61,275.00 4,765.00 11,696.00
2016-06-30 58,040.00 4,410.00 11,486.00
2016-03-31 57,180.00 4,891.00 10,943.00
2015-12-31 58,378.00 5,587.00 10,908.00
2015-09-30 62,937.00 3,407.00 11,496.00
2015-06-30 62,165.00 2,464.00 11,512.00
2015-03-31 61,954.00 2,149.00 11,833.00
2014-12-31 59,062.00 1,355.00 11,771.00
2014-09-30 51,354.00 2,349.00 11,153.00
2014-06-30 48,291.00 2,851.00 11,022.00
2014-03-31 46,208.00 1,264.00 10,947.00
2013-12-31 46,794.00 -682.00 10,930.00
2013-09-30 79,478.00 -409.00 9,545.00
2013-06-30 82,731.00 -2,001.00 9,624.00
2013-03-31 87,582.00 713.00 9,549.00
2012-12-31 87,584.00 498.00 11,007.00
2012-09-30 50,605.00 1,285.00 9,506.00
2012-06-30 52,392.00 3,449.00 9,433.00
2012-03-31 48,500.00 2,021.00 9,469.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Prudential Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Prudential Financial used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • Prudential Financial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Prudential Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Prudential Financial has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Prudential Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Prudential Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Prudential Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Prudential Financial Company Filings, last reported 1 month ago.

NYSE:PRU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 49,031.00 34,663.00 25,280.00
2018-09-30 47,082.00 34,576.00 21,510.00
2018-06-30 48,592.00 33,572.00 23,902.00
2018-03-31 52,175.00 33,425.00 24,464.00
2017-12-31 54,511.00 32,824.00 25,042.00
2017-09-30 50,565.00 33,870.00 48,385.00
2017-06-30 48,640.00 34,434.00 49,067.00
2017-03-31 46,974.00 34,197.00 46,166.00
2016-12-31 46,088.00 33,263.00 49,239.00
2016-09-30 56,974.00 34,254.00 59,369.00
2016-06-30 55,178.00 33,734.00 58,147.00
2016-03-31 49,265.00 35,932.00 55,688.00
2015-12-31 41,923.00 40,785.00 60,697.00
2015-09-30 42,770.00 45,439.00 62,627.00
2015-06-30 42,292.00 45,716.00 55,723.00
2015-03-31 45,574.00 44,458.00 57,681.00
2014-12-31 42,349.00 43,376.00 54,313.00
2014-09-30 42,352.00 47,931.00 52,585.00
2014-06-30 41,807.00 45,540.00 47,761.00
2014-03-31 38,864.00 44,315.00 47,451.00
2013-12-31 35,881.00 42,462.00 46,422.00
2013-09-30 35,116.00 42,296.00 48,681.00
2013-06-30 35,908.00 41,063.00 47,861.00
2013-03-31 40,666.00 39,704.00 48,517.00
2012-12-31 39,112.00 38,549.00 51,465.00
2012-09-30 39,366.00 38,267.00 49,207.00
2012-06-30 38,630.00 38,767.00 48,576.00
2012-03-31 35,538.00 38,184.00 46,986.00
  • Prudential Financial's level of debt (70.7%) 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 (118.3% vs 70.7% today).
  • Debt is well covered by operating cash flow (62.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).
X
Financial health checks
We assess Prudential Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Prudential Financial has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.23%
Current annual income from Prudential Financial dividends. Estimated to be 4.59% next year.
If you bought $2,000 of Prudential Financial shares you are expected to receive $85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Prudential Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Prudential Financial's dividend is above the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PRU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PRU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 4.75 5.00
2020-12-31 4.38 11.00
2019-12-31 4.08 10.00
NYSE:PRU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-15 4.000 4.239
2019-02-06 4.000 4.324
2018-11-12 3.600 4.104
2018-08-07 3.600 3.651
2018-05-08 3.600 3.670
2018-02-07 3.600 3.400
2017-11-14 3.000 2.573
2017-08-08 3.000 2.815
2017-05-09 3.000 2.770
2017-05-05 3.000 2.770
2017-05-03 3.000 2.758
2017-02-17 3.000 2.779
2017-02-08 3.000 2.736
2016-11-08 2.800 2.708
2016-08-09 2.800 3.460
2016-05-10 2.800 3.751
2016-02-09 2.800 3.901
2015-11-10 2.800 3.608
2015-08-11 2.320 2.890
2015-05-12 2.320 2.637
2015-02-10 2.320 2.858
2014-11-11 2.320 2.753
2014-08-12 2.120 2.430
2014-05-14 2.120 2.428
2014-02-11 2.120 2.537
2013-11-12 2.120 2.403
2013-08-15 1.600 2.011
2013-05-14 1.600 2.165
2013-02-12 1.600 2.731
2012-11-07 1.600 2.945
2011-11-08 1.450 2.699
2010-11-09 1.150 2.017
2009-11-10 0.700 1.282
2009-02-23 0.580 1.761

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Prudential Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Prudential Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Prudential Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Prudential Financial has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charlie Lowrey
COMPENSATION $11,799,322
AGE 60
TENURE AS CEO 0.2 years
CEO Bio

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. He served as an Executive Vice President and Chief Operating Officer of International businesses at Prudential Financial, Inc. since March 2014. He served as an Executive Vice President and Chief Operating Officer of Prudential’s U.S. businesses from February 2011 to March 2014. Previously, he served as President and Chief Executive Officer of PGIM, Prudential’s global investment management business from January 2008 to February 2011 and earlier as Chief Executive Officer of its real estate investment business, PGIM Real Estate from February 2002 to January 2008. Before joining Prudential in 2001, he was a Managing Director and Head of the Americas for J.P. Morgan’s Real Estate and Lodging Investment Banking group, where he began his investment banking career in 1988. Earlier, he spent four years as a managing Partner of an architecture firm he founded in New York City. During this time, he became a registered New York architect. He received an MBA from Harvard University, a master’s degree in Architecture from Yale University and a bachelor’s degree in Architecture from Princeton University.

CEO Compensation
  • Charlie's compensation has been consistent with company performance over the past year.
  • Charlie's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Prudential Financial management team in years:

1.8
Average Tenure
59
Average Age
  • The average tenure for the Prudential Financial management team is less than 2 years, this suggests a new team.
Management Team

Charlie Lowrey

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
60
TENURE
0.2 yrs

Steve Pelletier

TITLE
Executive VP & COO of U.S. Businesses
COMPENSATION
$16M
AGE
64
TENURE
4.8 yrs

Ken Tanji

TITLE
Executive VP & CFO
AGE
52
TENURE
0.2 yrs

Timothy Schmidt

TITLE
Senior VP & Chief Investment Officer
AGE
59
TENURE
0.2 yrs

Robert Axel

TITLE
Senior VP
TENURE
4.9 yrs

Barbara Koster

TITLE
Senior VP & Chief Information Officer
AGE
63

Darin Arita

TITLE
SVP, Head of Investor Relations

Lee Augsburger

TITLE
Chief Ethics & Compliance Officer
AGE
58

Tim Harris

TITLE
Executive VP & General Counsel
AGE
57
TENURE
3.3 yrs

Theresa Miller

TITLE
Vice President of Communications
Board of Directors Tenure

Average tenure and age of the Prudential Financial board of directors in years:

9.5
Average Tenure
63
Average Age
  • The tenure for the Prudential Financial board of directors is about average.
Board of Directors

John Strangfeld

TITLE
Chairman
COMPENSATION
$27M
AGE
64
TENURE
10.8 yrs

Charlie Lowrey

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
60
TENURE
0.2 yrs

Mark Grier

TITLE
Vice Chairman
COMPENSATION
$18M
AGE
65
TENURE
16.5 yrs

Rob Falzon

TITLE
Vice Chairman
COMPENSATION
$9M
AGE
58
TENURE
0.2 yrs

Gill Casellas

TITLE
Independent Director
COMPENSATION
$328K
AGE
65
TENURE
18.1 yrs

Karl Krapek

TITLE
Director
COMPENSATION
$373K
AGE
69
TENURE
15.1 yrs

Christine Poon

TITLE
Director
COMPENSATION
$324K
AGE
66
TENURE
12.4 yrs

Tom Baltimore

TITLE
Lead Independent Director
COMPENSATION
$375K
AGE
55
TENURE
1.8 yrs

Doug Scovanner

TITLE
Director
COMPENSATION
$335K
AGE
62
TENURE
5.3 yrs

Martina T. Hund-Mejean

TITLE
Director
COMPENSATION
$305K
AGE
57
TENURE
8.3 yrs
Who owns this company?
Recent Insider Trading
  • Prudential Financial insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Feb 19 Sell Stephen Pelletier Individual 15. Feb 19 15. Feb 19 -6,532 $94.14 $-614,922
12. Dec 18 Buy Sandra Pianalto Individual 10. Dec 18 10. Dec 18 250 $83.53 $20,883
19. Jul 18 Sell Thomas Baltimore Individual 13. Jun 12 01. Aug 16 -315 $90.23 $-17,149
19. Jul 18 Buy Thomas Baltimore Individual 30. Oct 13 30. Oct 13 65 $81.72 $5,312
X
Management checks
We assess Prudential Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Prudential Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Only 2 Days Left Until Prudential Financial, Inc. (NYSE:PRU) Trades Ex-Dividend

(NYSE:PRU) will be distributing its dividend of US$1.00 per share on the 14 March 2019, and will start trading ex-dividend in 2 days time on the 19 February 2019. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future.

Simply Wall St -

Should You Investigate Prudential Financial, Inc. (NYSE:PRU) At US$92.14?

The company's stock. … saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price

Simply Wall St -

Prudential Financial, Inc. (NYSE:PRU) Is An Attractive Dividend Stock, Here's Why

Over the past 10 years Prudential Financial, Inc. … The company currently pays out a dividend yield of 4.2% to shareholders, making it a relatively attractive dividend stock. … View our latest analysis for Prudential Financial

Simply Wall St -

Should You Be Holding Prudential Financial, Inc. (NYSE:PRU)?

Attractive stocks have exceptional fundamentals. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Here's What Prudential Financial Inc's (NYSE:PRU) P/E Ratio Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Based on the last twelve months, Prudential Financial's P/E ratio is 5.53. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Think About Buying Prudential Financial Inc (NYSE:PRU) Now?

Today we're going to take a look at the well-established Prudential Financial Inc (NYSE:PRU). … A question to answer is whether Prudential Financial's current trading price of $99.7 reflective of the actual value of the? … Let’s take a look at Prudential Financial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Only 2 Days Left To Prudential Financial Inc (NYSE:PRU)’s Ex-Dividend Date, Should Investors Buy?

To qualify for the dividend check of US$0.90 per share, investors must have owned the shares prior to 20 August 2018, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout? … Does earnings amply cover its dividend payments

Simply Wall St -

How Should Investors React To Prudential Financial Inc's (NYSE:PRU) CEO Pay?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … Strangfeld’s pay and compare this to the company’s performance over the same period, as well as measure it against other

Simply Wall St -

How Did Prudential Financial Inc's (NYSE:PRU) 15.27% ROE Fare Against The Industry?

and want to learn about Return on Equity using a real-life example. … Prudential Financial Inc (NYSE:PRU) delivered an ROE of 15.27% over the past 12 months, which is an impressive feat relative to its industry average of 9.44% during the same period. … However, ROE only measures returns against equity, not debt.

Simply Wall St -

Should You Be Tempted To Buy Prudential Financial Inc (NYSE:PRU) At Its Current PE Ratio?

Prudential Financial Inc (NYSE:PRU) trades with a trailing P/E of 5.2x, which is lower than the industry average of 14x. … While this makes PRU appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … See our latest analysis for Prudential Financial

Simply Wall St -

Company Info

Map
Description

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. Individual Solutions, and International Insurance divisions. The PGIM division offers an array of asset management and advisory services related to 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. The U.S. Workplace Solutions division 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 U.S. Individual Solutions division 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. The International Insurance division develops and distributes 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. The company offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

Details
Name: Prudential Financial, Inc.
PRU
Exchange: NYSE
Founded: 1875
$38,863,180,000
409,000,000
Website: http://www.prudential.com
Address: Prudential Financial, Inc.
751 Broad Street,
Newark,
New Jersey, 07102,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PRU Common Stock New York Stock Exchange US USD 13. Dec 2001
DB PLL Common Stock Deutsche Boerse AG DE EUR 13. Dec 2001
LSE 0KRX Common Stock London Stock Exchange GB USD 13. Dec 2001
BMV PRU * Common Stock Bolsa Mexicana de Valores MX MXN 13. Dec 2001
Number of employees
Current staff
Staff numbers
50,492
Prudential Financial employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/21 23:44
End of day share price update: 2019/02/21 00:00
Last estimates confirmation: 2019/02/21
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.