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Principal Financial (PFG) Stock Analysis

This is a peer-relative look at Principal Financial (PFG): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Insurance peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Principal Financial (PFG)
Profile ItemPFG
NamePrincipal Financial Group Inc.
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupInsurance
GICS IndustryInsurance
GICS Sub-IndustryLife & Health Insurance
Market Capitalization23.55 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateOctober 23, 2001
Security TypeCommon Stock

Price Performance

Cumulative Growth

PFG
GSPC
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Principal Financial (PFG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Principal Financial (PFG) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Principal Financial (PFG) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
Total Return (1Y)43.88%13.21%
Total Return (3Y, Annualized)22.99%16.41%
Total Return (5Y, Annualized)15.02%10.37%

Risk Profile

Drawdown History

PFG
GSPC
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Principal Financial (PFG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Principal Financial (PFG) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
Volatility (1Y, Annualized)23.45%28.84%
Beta (5Y)0.860.50
Max Drawdown (5Y)-29.32%-38.77%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PFG is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
Sharpe Ratio (1Y)1.690.28
Sortino Ratio (1Y)2.670.41

Profitability

ROE (TTM)

Principal Financial (PFG) posts ROE of 16.11%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

PFG

Insurance industry group

16.11%

Group distribution
Max
41.68%
Q3
22.04%
PFG
16.11%
Median
14.81%
Q1
8.79%
Min
-10.66%
Largest peers
PGR
33.24%
TRV
27.50%
MRSH
27.24%
PFG
16.11%
CB
14.25%
MFC
12.24%
AJG
7.21%
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Where Principal Financial (PFG) stands on ROE within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Principal Financial (PFG) keeps 11.89% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

PFG

Insurance industry group

11.89%

Group distribution
Max
29.92%
Q3
17.03%
PFG
11.89%
Median
10.97%
Q1
6.21%
Min
-4.68%
Largest peers
MFC
18.97%
CB
18.13%
TRV
17.03%
MRSH
14.20%
PGR
12.67%
PFG
11.89%
AJG
10.78%
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Where Principal Financial (PFG) stands on net margin within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

operating margin is set aside for Principal Financial (PFG) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.

Profitability Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
ROE (TTM)16.11%14.81%
ROA (TTM)0.46%2.72%
Net Margin (TTM)11.89%10.97%
Operating Margin (TTM)----
Gross Margin (TTM)----

Growth

Revenue Growth

Principal Financial (PFG) grew revenue -3.11%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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Principal Financial (PFG): Revenue Growth across different time periods, set against Insurance industry-group medians.

EPS Growth

Principal Financial (PFG) grew earnings per share -21.41%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.

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Principal Financial (PFG): EPS Growth across different time periods, set against Insurance industry-group medians.

Growth Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
Revenue Growth (YoY)-3.11%7.89%
Revenue Growth (3Y CAGR)-3.77%11.40%
EPS Growth (YoY)-21.41%21.77%
EPS Growth (3Y CAGR)-34.44%18.46%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Principal Financial (PFG) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Principal Financial (PFG) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Principal Financial (PFG) has dividend yield of 2.88%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

PFG

Insurance industry group

2.88%

Group distribution
Max
5.12%
PFG
2.88%
Q3
2.15%
Median
0.98%
Q1
0.00%
Min
0.00%
Largest peers
MFC
4.32%
PFG
2.88%
MRSH
1.80%
TRV
1.17%
CB
1.07%
AJG
0.95%
PGR
0.17%
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Where Principal Financial (PFG) stands on dividend yield within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Principal Financial (PFG) has payout ratio of 36.19%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

PFG

Insurance industry group

36.19%

Group distribution
Max
76.67%
PFG
36.19%
Q3
35.18%
Median
14.74%
Q1
0.00%
Min
0.00%
Largest peers
PGR
70.03%
MFC
54.30%
MRSH
44.14%
AJG
41.98%
PFG
36.19%
CB
13.95%
TRV
12.36%
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Where Principal Financial (PFG) stands on payout ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
Dividend Yield (TTM)2.88%0.98%
Dividend Payout Ratio (TTM)36.19%14.74%

Valuation

P/E Ratio (TTM)

Principal Financial (PFG) trades at P/E ratio of 12.35, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PFG

Insurance industry group

12.35

Group distribution
Max
28.37
Q3
18.75
PFG
12.35
Median
12.23
Q1
9.08
Min
2.32
Largest peers
AJG
42.99
MRSH
24.50
MFC
17.23
CB
12.79
PFG
12.35
PGR
11.47
TRV
10.39
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Where Principal Financial (PFG) stands on P/E ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Principal Financial (PFG) trades at 1.42 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

PFG

Insurance industry group

1.42

Group distribution
Max
4.03
Q3
2.25
PFG
1.42
Median
1.23
Q1
0.85
Min
0.07
Largest peers
AJG
4.58
MRSH
3.42
CB
2.25
MFC
2.11
TRV
1.66
PGR
1.44
PFG
1.42
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Where Principal Financial (PFG) stands on P/S ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Principal Financial (PFG) trades at 2.00 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

PFG

Insurance industry group

2.00

Group distribution
Max
5.07
Q3
2.79
PFG
2.00
Median
1.76
Q1
1.23
Min
0.30
Largest peers
MRSH
6.64
PGR
3.82
AJG
3.00
TRV
2.79
MFC
2.13
PFG
2.00
CB
1.91
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Where Principal Financial (PFG) stands on P/B ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Principal Financial (PFG) metric values compared with Insurance industry-group medians
MetricCurrent stock: PFGIndustry group median
P/E Ratio (TTM)12.3512.23
P/S Ratio (TTM)1.421.23
P/B Ratio (MRQ)2.001.76
Free Cash Flow Yield (TTM)----