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 Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$106.61|
|52 Week High||US$60.39|
|52 Week Low||US$109.17|
|1 Month Change||-0.70%|
|3 Month Change||4.80%|
|1 Year Change||66.50%|
|3 Year Change||4.96%|
|5 Year Change||30.92%|
|Change since IPO||263.86%|
Recent News & Updates
Prudential has reported strong results in 2021 so far. The Wall Street analysts remain neutral. The market-implied outlook (derived from options) has improved substantially as compared to early 2021. PRU looks like a solid value, although share performance depends on interest rate trends. I am changing my rating on PRU to bullish.
Prudential: A Rock In My Dividend Growth Portfolio
Those who have followed me on Seeking Alpha long enough know that I frequently cover Prudential. As the 6th largest contributor to my annual dividend income, I sleep well at night knowing Prudential's adjusted operating income/share payout ratio will be sub-40% this year. Prudential's adjusted operating income per share more than doubled from Q2 2020 to Q2 2021, while adjusted book value per common share ticked up by 13.4% year-over-year. Adding to the case for investment in Prudential is the fact that my inputs into the DCF model and DDM show the stock to be trading at a 16% discount to fair value. Prudential's 4.4% yield, 5-6% annual earnings growth potential, and 1.7% annual valuation multiple expansion offers investors a clear path to 10%+ annual total returns over the next 5-10 years.
|PRU||US Insurance||US Market|
Return vs Industry: PRU exceeded the US Insurance industry which returned 39.8% over the past year.
Return vs Market: PRU exceeded the US Market which returned 32.8% over the past year.
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
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 Fundamentals Summary
|PRU fundamental statistics|
Is PRU overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PRU income statement (TTM)|
|Cost of Revenue||US$42.20b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 02, 2021
|Earnings per share (EPS)||18.63|
|Net Profit Margin||11.21%|
How did PRU perform over the long term?See historical performance and comparison
4.3%Current Dividend Yield
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 ($106.61) is trading below our estimate of fair value ($131.65)
Significantly Below Fair Value: PRU is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PRU is good value based on its PE Ratio (5.7x) compared to the US Insurance industry average (9.7x).
PE vs Market: PRU is good value based on its PE Ratio (5.7x) compared to the US market (18.1x).
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 (1.1x).
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 (-19.8% per year).
Earnings vs Market: PRU's earnings are forecast to decline over the next 3 years (-19.8% per year).
High Growth Earnings: PRU's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PRU's revenue is expected to decline over the next 3 years (-0.2% per year).
High Growth Revenue: PRU's revenue is forecast to decline over the next 3 years (-0.2% 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 high quality earnings.
Growing Profit Margin: PRU became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: PRU's earnings have declined by 15.6% per year over the past 5 years.
Accelerating Growth: PRU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: PRU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (76%).
Return on Equity
High ROE: PRU's Return on Equity (11.8%) is considered low.
How is Prudential Financial's financial position?
Financial Position Analysis
Short Term Liabilities: PRU's short term assets ($34.5B) do not cover its short term liabilities ($51.5B).
Long Term Liabilities: PRU's short term assets ($34.5B) do not cover its long term liabilities ($811.3B).
Debt to Equity History and Analysis
Debt Level: PRU's debt to equity ratio (54.7%) is considered high.
Reducing Debt: PRU's debt to equity ratio has reduced from 61.1% to 54.7% over the past 5 years.
Debt Coverage: PRU's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if PRU's interest payments on its debt are well covered by EBIT.
What is Prudential Financial current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PRU's dividend (4.31%) is higher than the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: PRU's dividend (4.31%) is in the top 25% of dividend payers in the US market (3.57%)
Stability and Growth of Payments
Stable Dividend: PRU's dividends per share have been stable in the past 10 years.
Growing Dividend: PRU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.6%), PRU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PRU's dividends in 3 years are forecast to be well covered by earnings (42.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Charlie Lowrey (63 yo)
Mr. Charles Frederick Lowrey, Jr., also known as Charlie, has been Chief Executive Officer, President and Director of Prudential Financial, Inc. since December 01, 2018 and has been its Chairman of the Boa...
CEO Compensation Analysis
Compensation vs Market: Charlie's total compensation ($USD14.99M) is above average for companies of similar size in the US market ($USD11.29M).
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 (2.8 years average tenure).
Experienced Board: PRU's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$41.237b
- Shares outstanding: 386.80m
- Website: https://www.prudential.com
Number of Employees
- Prudential Financial, Inc.
- 751 Broad Street
- New Jersey
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 23:00|
|End of Day Share Price||2021/09/27 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.