Prudential Financial (PRU) Stock Analysis
Here is a fundamental analysis of Prudential Financial (PRU), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: PRU | Industry group median |
|---|---|---|
| 1-Year Return | 9.05% | 8.77% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: PRU | Industry group median |
|---|---|---|
| 1-Year Volatility | 22.71% | 27.79% |
| Beta | 0.85 | 0.55 |
Company Profile
| Profile Item | PRU |
|---|---|
| Name | Prudential Financial, Inc. |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Life & Health Insurance |
| Market Capitalization | 37.68 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | December 13, 2001 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Prudential Financial (PRU) trades at P/E ratio of 11.17, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
PRU
Insurance industry group
11.17
Group distribution
- Max
- 25.24
- Q3
- 16.46
- Median
- 12.28
- PRU
- 11.17
- Q1
- 8.66
- Min
- 3.44
Largest peers
- MRSH
- 21.09
- AON
- 18.41
- MFC
- 16.19
- CB
- 11.60
- PRU
- 11.17
- PGR
- 10.33
- TRV
- 9.08
Price-to-Sales Ratio (TTM)
Prudential Financial (PRU) trades at 0.60 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.
PRU
Insurance industry group
0.60
Group distribution
- Max
- 3.96
- Q3
- 2.13
- Median
- 1.17
- Q1
- 0.82
- PRU
- 0.60
- Min
- 0.13
Largest peers
- AON
- 4.10
- MRSH
- 2.95
- MFC
- 2.10
- CB
- 2.09
- PGR
- 1.33
- TRV
- 1.32
- PRU
- 0.60
Price-to-Book Ratio (MRQ)
Prudential Financial (PRU) trades at 1.18 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.
PRU
Insurance industry group
1.18
Group distribution
- Max
- 3.70
- Q3
- 2.21
- Median
- 1.61
- PRU
- 1.18
- Q1
- 1.12
- Min
- -0.14
Largest peers
- AON
- 7.28
- MRSH
- 5.58
- PGR
- 3.70
- TRV
- 2.02
- MFC
- 1.92
- CB
- 1.73
- PRU
- 1.18
Valuation at a Glance
| Metric | Current stock: PRU | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 11.17 | 12.28 |
| Price-to-Sales Ratio (TTM) | 0.60 | 1.17 |
| Price-to-Book Ratio (MRQ) | 1.18 | 1.61 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
Prudential Financial (PRU) posts ROE of 10.71%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
PRU
Insurance industry group
10.71%
Group distribution
- Max
- 38.88%
- Q3
- 22.34%
- Median
- 14.13%
- PRU
- 10.71%
- Q1
- 9.51%
- Min
- -6.23%
Largest peers
- AON
- 46.45%
- PGR
- 37.90%
- MRSH
- 27.57%
- TRV
- 25.27%
- CB
- 15.43%
- MFC
- 12.56%
- PRU
- 10.71%
Net Profit Margin (TTM)
Prudential Financial (PRU) keeps 5.48% 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.
PRU
Insurance industry group
5.48%
Group distribution
- Max
- 38.86%
- Q3
- 19.36%
- Median
- 11.07%
- PRU
- 5.48%
- Q1
- 5.09%
- Min
- -2.80%
Largest peers
- AON
- 22.54%
- MFC
- 20.04%
- CB
- 18.53%
- TRV
- 15.54%
- MRSH
- 14.26%
- PGR
- 12.93%
- PRU
- 5.48%
Operating Profit Margin (TTM)
operating margin is set aside for Prudential Financial (PRU) 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 at a Glance
| Metric | Current stock: PRU | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 10.71% | 14.13% |
| Return on Assets (TTM) | 0.41% | 2.66% |
| Net Profit Margin (TTM) | 5.48% | 11.07% |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Prudential Financial (PRU) 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-to-Equity Ratio (MRQ)
debt-to-equity ratio is set aside for Prudential Financial (PRU) 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 at a Glance
| Metric | Current stock: PRU | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Prudential Financial (PRU) has dividend yield of 5.16%, 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.
PRU
Insurance industry group
5.16%
Group distribution
- Max
- 5.43%
- PRU
- 5.16%
- Q3
- 2.64%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 6.84%
- PRU
- 5.16%
- MFC
- 3.33%
- MRSH
- 2.13%
- TRV
- 1.64%
- CB
- 1.24%
- AON
- 0.98%
Dividend Payout Ratio (TTM)
Prudential Financial (PRU) has payout ratio of 56.13%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
PRU
Insurance industry group
56.13%
Group distribution
- Max
- 86.52%
- PRU
- 56.13%
- Q3
- 35.43%
- Median
- 14.92%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 70.70%
- PRU
- 56.13%
- MFC
- 52.02%
- MRSH
- 43.94%
- AON
- 16.36%
- CB
- 13.72%
- TRV
- 13.13%
Dividends at a Glance
| Metric | Current stock: PRU | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 5.16% | 1.35% |
| Dividend Payout Ratio (TTM) | 56.13% | 14.92% |