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
| Profile Item | PFG |
|---|---|
| Name | Principal Financial Group Inc. |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Life & Health Insurance |
| Market Capitalization | 23.55 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | October 23, 2001 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: PFG | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: PFG | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 23.45% | 28.84% |
| Beta (5Y) | 0.86 | 0.50 |
| Max Drawdown (5Y) | -29.32% | -38.77% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: PFG | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.69 | 0.28 |
| Sortino Ratio (1Y) | 2.67 | 0.41 |
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%
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%
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
| Metric | Current stock: PFG | Industry 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.
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.
Growth Metrics
| Metric | Current stock: PFG | Industry 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
| Metric | Current stock: PFG | Industry 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%
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%
Dividend Metrics
| Metric | Current stock: PFG | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: PFG | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 12.35 | 12.23 |
| P/S Ratio (TTM) | 1.42 | 1.23 |
| P/B Ratio (MRQ) | 2.00 | 1.76 |
| Free Cash Flow Yield (TTM) | -- | -- |