PRU Prudential Financial, Inc. - Fundamental Analysis
NEUTRAL
PRU Stock | Fundamental Analysis & Investment Insights
NYSE
•
Financial Services
•
Insurance - Life
Current Price
$107.16
Analyst Target
$116.43
+8.6% Upside
52W High
$130.55
52W Low
$90.38
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Prudential Financial (PRU) trades at a significant valuation discount to the broader financial services sector, supported by a compelling 5.04% dividend yield and strong near-term earnings growth of 223.4% YoY. However, revenue contraction of -8.3% YoY, deteriorating profitability margins, and bearish insider activity—highlighted by $5.61M in recent sales—temper optimism. The stock has underperformed over the past year (-10.6%) despite a modest recovery in recent months, and while valuation appears attractive relative to peers like MET and AIG, weak ROA (0.27%) and high leverage (D/E of 1.49) raise structural concerns. Analysts concur with a 'hold' rating and a $116.43 target, implying only 8.6% upside, consistent with our neutral stance.
Key Strengths
Attractive dividend yield of 5.04% well above sector average of ~2.5%
Forward P/E of 7.29 is deeply discounted vs sector average of 22.13 and peer group
Strong YoY earnings growth of 223.4%, indicating significant earnings recovery or cost discipline
Market cap of $37.74B ensures inclusion in major indices and institutional ownership stability
Trading below 52-week high of $130.55, offering potential reversion opportunity
Key Risks
Revenue declining YoY by -8.30%, signaling underlying business contraction or portfolio runoff
ROA of just 0.27% is critically low, indicating poor asset efficiency vs sector avg of 26.51%
Debt/Equity of 1.49 exceeds sector average of 0.76, increasing financial risk in rising rate environment
Bearish insider activity: $5.61M in sales with zero buys over last 6 months
Current and quick ratios below 1.0 (0.84 and 0.73), suggesting liquidity pressure
AI Fair Value Estimate
Based on comprehensive analysis
$116.43
+8.7% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare PRU against industry averages and similar companies
Insider Trading & Analyst Ratings
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