PRU Prudential Financial, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
PRU is substantially cheaper than the financial services sector on earnings and sales multiples, even as peers like MET (P/E 14.81) and AIG (P/E 13.98) trade at higher multiples despite weaker growth profiles.
- Forward P/E of 7.29 is less than one-third of sector average (22.13)
- Price/Book of 1.17 and Price/Sales of 0.66 both below sector medians
- P/B of 1.17 may be misleading due to leverage inflating equity base
- Lack of EV/EBITDA and EV/Revenue limits enterprise-level valuation clarity
Despite explosive earnings growth, the disconnect from revenue momentum and lack of visible growth catalysts, combined with flat price performance over the past year, suggests limited near-term upside momentum.
- Exceptional YoY earnings growth of 223.4% suggests strong earnings power recovery
- Q/Q earnings growth of 219.4% indicates accelerating profitability
- Revenue declining by -8.3% YoY, indicating fundamental top-line weakness
- No recent analyst target range dispersion data to assess forward sentiment breadth
While PRU has delivered strong long-term returns, recent underperformance, lack of earnings beats, and declining margins over the past year reflect execution challenges and investor skepticism.
- 5-year total return of +80.8% reflects strong long-term capital appreciation
- Consistent profitability with positive operating and net margins
- Zero earnings beats in last 4 quarters with no surprise data, indicating missed or weak execution
- 1-year return of -10.6% underperforms both sector and peers
PRU’s financial health is weaker than peers like AIG (D/E 0.22) and PYPL (D/E 0.60), with liquidity ratios below 1.0 and asset returns far below the sector average ROA, raising concerns about capital efficiency.
- Debt levels appear manageable at D/E of 1.49 within insurance norms
- Operating profitability remains positive despite margin compression
- Current ratio of 0.84 and quick ratio of 0.73 indicate potential liquidity strain
- ROA of 0.27% is alarmingly low, suggesting inefficient use of assets
The dividend appears well-covered and highly competitive versus the sector, but lack of visibility into long-term policy and recent insider selling near dividend dates introduces caution.
- Dividend yield of 5.04% is highly attractive in current rate environment
- Payout ratio of 73.29% is sustainable given earnings recovery
- No data on dividend growth history or consistency of increases
- Dividend sustainability could be pressured if earnings growth reverses
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for PRU and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
PRU
Prudential Financial, Inc.
Primary
|
+80.8% | +15.1% | -10.6% | +2.4% | +3.9% | +0.8% |
|
ACGL
Arch Capital Group Ltd.
Peer
|
+175.6% | +73.1% | -2.8% | -2.2% | +3.3% | +3.3% |
|
AIG
American International Group, Inc.
Peer
|
+127.0% | +37.3% | +4.9% | -6.8% | -4.3% | +1.1% |
|
AMP
Ameriprise Financial, Inc.
Peer
|
+165.9% | +47.8% | -17.4% | -12.0% | -4.5% | -0.4% |
|
MSCI
MSCI Inc.
Peer
|
+49.6% | +16.3% | -5.3% | -0.6% | +3.2% | -2.7% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Financial Services Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
PRU
Prudential Financial, Inc.
|
NEUTRAL | $37.74B | 14.68 | 8.5% | 4.5% | $107.16 | |
|
ACGL
Arch Capital Group Ltd.
|
BULLISH | $33.64B | 8.67 | 17.8% | 21.0% | $92.52 | |
|
AIG
American International Group, Inc.
|
NEUTRAL | $42.28B | 13.98 | 7.7% | 12.0% | $77.75 | |
|
AMP
Ameriprise Financial, Inc.
|
BULLISH | $42.68B | 12.59 | 59.6% | 19.6% | $458.0 | |
|
MSCI
MSCI Inc.
|
BULLISH | $43.08B | 35.84 | -% | 40.0% | $565.15 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-10 | LOWREY CHARLES F | Chairman of the Board | Sale | 48,164 | $5,172,332 |
| 2025-08-29 | KAPPLER ANN M | General Counsel | Sale | 4,000 | $438,600 |
| 2025-08-29 | BOYLE ROBERT F | Officer | Stock Award | 352 | - |
Wall Street Analysts
Professional analyst ratings and price targets