PRU

Prudential FinancialNYSE:PRU Stock Report

Market Cap

US$39.9b

7D

-6.2%

1Y

52.8%

Updated

20 Sep, 2021

Data

Company Financials +
PRU fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends6/6

PRU 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 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prudential Financial
Historical stock prices
Current Share PriceUS$98.89
52 Week HighUS$60.16
52 Week LowUS$109.17
Beta1.68
1 Month Change-5.22%
3 Month Change-1.52%
1 Year Change52.77%
3 Year Change-4.27%
5 Year Change24.53%
Change since IPO237.51%

Recent News & Updates

Sep 04

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.

Aug 05

Prudential For Dividend Investors

First, I show how PRU compares to the industry, in terms of dividend yield and earnings yield. Second, I look at PRU's yield over time, and what's driving the variance. Third, I review PRU's payout ratio, including a "scary" dividend cut. Fourth, I take an educated guess about the 2022 dividend, based on history, analyst forecasts and earnings growth. Lastly, I wrap up with a quick discussion about PRU's valuation, and my generally bullish call.

Shareholder Returns

PRUUS InsuranceUS Market
7D-6.2%-3.4%-2.5%
1Y52.8%36.4%33.0%

Return vs Industry: PRU exceeded the US Insurance industry which returned 35.9% over the past year.

Return vs Market: PRU exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is PRU's price volatile compared to industry and market?
PRU volatility
PRU Beta1.68
Industry Beta0.97
Market Beta1

Stable Share Price: PRU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PRU's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199941,671Charlie 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 Fundamentals Summary

How do Prudential Financial's earnings and revenue compare to its market cap?
PRU fundamental statistics
Market CapUS$39.89b
Earnings (TTM)US$7.21b
Revenue (TTM)US$64.32b

5.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRU income statement (TTM)
RevenueUS$64.32b
Cost of RevenueUS$42.20b
Gross ProfitUS$22.12b
ExpensesUS$14.91b
EarningsUS$7.21b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)18.26
Gross Margin34.39%
Net Profit Margin11.21%
Debt/Equity Ratio54.7%

How did PRU perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Prudential Financial undervalued compared to its fair value and its price relative to the market?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRU ($98.89) is trading below our estimate of fair value ($135.94)

Significantly Below Fair Value: PRU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRU is good value based on its PE Ratio (5.3x) compared to the US Insurance industry average (9.5x).

PE vs Market: PRU is good value based on its PE Ratio (5.3x) compared to the US market (17.8x).


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 (0.6x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Prudential Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-19.8%

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%).


Past Performance

How has Prudential Financial performed over the past 5 years?

-15.6%

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.


Financial Health

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.


Balance Sheet


Dividend

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

4.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRU's dividend (4.65%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: PRU's dividend (4.65%) is in the top 25% of dividend payers in the US market (3.6%)


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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Charlie Lowrey (63 yo)

2.75yrs

Tenure

US$14,990,254

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 has been its Chairman of the Boa...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD14.99M) is above average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Charlie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PRU's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: PRU's board of directors are considered experienced (5.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Prudential Financial, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Prudential Financial, Inc.
  • Ticker: PRU
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$39.895b
  • Shares outstanding: 386.80m
  • Website: https://www.prudential.com

Number of Employees


Location

  • Prudential Financial, Inc.
  • 751 Broad Street
  • Newark
  • New Jersey
  • 7102
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:32
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.