-0.37%
3.16%
-3.76%
-3.24%
14.30%
9.24%
30.90%
AI Spotlight on PRU
Company Description
Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally.It operates through eight segments: PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block.The company offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account.
It also provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; and group life, long-term and short-term group disability, and group corporate-, bank-, and trust-owned life insurance in the United States, primarily to institutional clients for use in connection with employee and membership benefits plans, as well as sells accidental death and dismemberment, and other supplemental health solutions; and provides plan administration services in connection with its insurance coverages.In addition, the company develops and distributes individual variable and fixed annuity products, principally to the mass affluent and affluent markets; and individual variable, term, and universal life insurance products to the mass middle, mass affluent, and affluent markets in the United States.Further, it provides third-party life, health, Medicare, property and casualty, and term life products to retail shoppers through its digital and independent agent channels.
The company offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks.Prudential Financial, Inc.was founded in 1875 and is headquartered in Newark, New Jersey.
Market Data
| Last Price | 121.88 |
| Change Percentage | -0.37% |
| Open | 123.36 |
| Previous Close | 122.33 |
| Market Cap ( Millions) | 43389 |
| Volume | 1194032 |
| Year High | 130.55 |
| Year Low | 100.6 |
| M A 50 | 121.55 |
| M A 200 | 119.19 |
Financial Ratios
| FCF Yield | 16.79% |
| Dividend Yield | 4.27% |
| ROE | 14.46% |
| Debt / Equity | 70.63% |
| Net Debt / EBIDTA | 2.77% |
| Price To Book | 1.43 |
| Price Earnings Ratio | 10.61 |
| Price To FCF | 5.96 |
| Price To sales | 0.58 |
| EV / EBITDA | 0.96 |
News
- Jan -30 - What's in the Cards for Prudential Financial This Earnings Season?
- Jan -30 - Prudential Financial Recognized as 2025 Industry Leader by Fortune's List of Most Admired Companies
- Jan -30 - Prudential's Retirement Business Is Booming
- Jan -28 - Prudential Sees 10% Productivity Lift from AI, CFO says
- Jan -24 - Prudential Financial and Dai-ichi Life to Pursue Strategic Partnership
- Jan -22 - Prudential Financial to Reinsure $7B Japanese Whole Life Block with Prismic Life
- Jan -11 - 3 Ideal Buys From 51 'Safer' Dividends In 100 January Barron's Sustainable Dogs
- Jan -10 - What's New With Prudential Stock?
- Jan -02 - Prudential Stock Slips Below 50-Day SMA: What Should You Do Now?
- Jan -02 - PGIM Adds Two Buffer ETF Series and Laddered Buffer ETF to Lineup
- Jan -01 - ‘Baby steps' toward retirement: Prudential gives Generation Beta a savings kick start and launches first-of-kind study
- Dec -26 - 3 No-Brainer Dividend Stocks to Buy With $200 Right Now
- Dec -18 - Prudential collaborates with Empathy to enhance workplace benefits with holistic bereavement support for families coping with loss
- Dec -12 - 2 Ideal Buys From 50 'Safer' Dividends In 100 December Sustainables
- Dec -04 - Prudential Financial: The Buying Window Has Closed (For Now)
- Dec -03 - Prudential Financial Board of Directors Elects Andrew Sullivan as Next CEO
- Dec -03 - Acathia Capital Increases Stake in Swedish Savings Platform Futur
- Nov -29 - 5 Multiline Insurers to Watch as Exposure Rises, Pricing Moderates
- Nov -28 - U.S. Financial Wellness Benefits Market Report 2024-2029 with Bank of America Merrill Lynch, Financial Finesse, Mercer, Prudential Financial, Virgin Pulse Leading the $1.21 Billion Market
- Nov -14 - 100 November Sustainable Dividend Dogs: 50 'Safer' And 2 Ideal Buys
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> International Businesses
Expected Growth : 1 %
What the company do ?
International Businesses from Prudential Financial, Inc. provides insurance and investment products to individuals and businesses in Asia, Europe, and Latin America.
Why we expect these perspectives ?
Prudential Financial, Inc.'s International Businesses segment growth is driven by increasing demand for life insurance and retirement products in emerging markets, particularly in Asia. Expansion into new markets, strategic partnerships, and digitalization of distribution channels also contribute to growth. Furthermore, a growing middle class and increasing life expectancy in these markets support the segment's growth.
Segment n°2 -> Institutional Retirement Strategies
Expected Growth : 2 %
What the company do ?
Institutional Retirement Strategies from Prudential Financial, Inc. offers customized retirement plans and investment solutions to help institutions and their employees achieve long-term financial goals.
Why we expect these perspectives ?
Prudential Financial, Inc.'s Institutional Retirement Strategies growth is driven by increasing demand for retirement plans, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on digitalization, customer-centric approach, and diversified product offerings contribute to its growth. Furthermore, the rising need for retirement savings and income solutions among institutional clients also fuels growth.
Segment n°3 -> Group Insurance
Expected Growth : 3 %
What the company do ?
Group Insurance from Prudential Financial, Inc. provides employee benefits, including life, disability, and supplemental health insurance, to employers to attract and retain top talent.
Why we expect these perspectives ?
Prudential Financial, Inc.'s Group Insurance segment growth is driven by increasing demand for employee benefits, expansion into new markets, and strategic partnerships. Additionally, the company's diversified product portfolio, including life, disability, and voluntary benefits, contributes to its growth. Furthermore, Prudential's strong brand reputation and distribution network also support its growth momentum.
Segment n°4 -> Individual Life
Expected Growth : 4 %
What the company do ?
Individual Life from Prudential Financial, Inc. offers personalized life insurance policies, providing financial protection and peace of mind to individuals and their loved ones.
Why we expect these perspectives ?
Prudential's Individual Life segment growth is driven by increasing demand for protection and retirement products, expansion into new distribution channels, and strategic partnerships. Additionally, the company's diversified product portfolio, including term life, universal life, and variable life insurance, contributes to its growth. Furthermore, Prudential's strong brand reputation and financial strength also support its growth momentum.
Segment n°5 -> Individual Retirement Strategies
Expected Growth : 5 %
What the company do ?
Individual Retirement Strategies from Prudential Financial, Inc. offer personalized retirement plans, investment options, and income strategies to help individuals achieve a secure retirement.
Why we expect these perspectives ?
Prudential Financial, Inc.'s Individual Retirement Strategies growth is driven by increasing demand for retirement planning, rising life expectancy, and shifting workforce demographics. Additionally, the growing need for guaranteed income sources, tax-deferred savings, and personalized investment options contribute to the 5% growth rate.
Segment n°6 -> Closed Block
Expected Growth : 0 %
What the company do ?
The Closed Block from Prudential Financial, Inc. refers to a portfolio of in-force life insurance policies and annuity contracts that are no longer actively marketed or sold.
Why we expect these perspectives ?
Prudential Financial, Inc.'s Closed Block segment growth is stagnant due to declining policy counts, lack of new business, and limited opportunities for expansion in the legacy block of business. Additionally, the segment's cash flows are being used to support other business units, further limiting growth potential.
Segment n°7 -> Global Investment Management
Expected Growth : 6 %
What the company do ?
Global Investment Management from Prudential Financial, Inc. offers a range of investment solutions to institutional clients, including pension funds, endowments, and sovereign wealth funds.
Why we expect these perspectives ?
Prudential Financial, Inc.'s Global Investment Management segment growth is driven by increasing demand for retirement and institutional investment products, expansion into emerging markets, and strategic acquisitions. Additionally, the segment benefits from a strong brand reputation, diversified investment capabilities, and a robust distribution network.
Segment n°8 -> Reconciling Items
Expected Growth : 0 %
What the company do ?
Reconciling Items from Prudential Financial, Inc. are differences between reported and expected values, requiring investigation and resolution to ensure accurate financial reporting.
Why we expect these perspectives ?
Prudential Financial, Inc. has stagnant growth due to declining sales in its U.S. Retirement Solutions and Investment Management segments, offsetting modest growth in its U.S. Individual Life and International Insurance segments. Weak market conditions, intense competition, and low interest rates are key factors contributing to this flat growth.
Segment n°9 -> Corporate and Other
Expected Growth : 0 %
What the company do ?
Corporate and Other from Prudential Financial, Inc. includes unallocated corporate expenses, restructuring and impairment charges, and results from divested businesses.
Why we expect these perspectives ?
Prudential Financial, Inc.'s Corporate and Other segment growth is stagnant at 0%. This is primarily due to low interest rates, increased competition, and high operating expenses. Additionally, the segment's lack of diversification and limited scalability also contribute to its stagnant growth.
Prudential Financial, Inc. Products
| Product Range | What is it ? |
|---|---|
| Term Life Insurance | Provides temporary life insurance coverage for a specified period of time |
| Permanent Life Insurance | Combines a death benefit with a savings component that grows over time |
| Universal Life Insurance | Flexible premium policy that combines a death benefit with a savings component |
| Variable Life Insurance | Combines a death benefit with a separate account that can be invested in various investments |
| Indexed Universal Life Insurance | Combines a death benefit with a savings component that earns interest based on the performance of a specific stock market index |
| Retirement Accounts | Tax-deferred savings plans designed to help individuals save for retirement |
| Annuities | Insurance products that provide a steady income stream for a set period of time or for life |
| Group Insurance | Insurance products offered through employers to provide coverage to employees |
| Investment Management | Professional management of investment portfolios |
| Real Estate Investments | Investments in commercial and residential real estate properties |
Prudential Financial, Inc.'s Porter Forces
Threat Of Substitutes
Prudential Financial, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.
Bargaining Power Of Customers
Prudential Financial, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often complex and require specialized knowledge, making it difficult for customers to switch to alternative providers.
Bargaining Power Of Suppliers
Prudential Financial, Inc. has a diverse supplier base, and the company is not heavily dependent on any single supplier. This reduces the bargaining power of suppliers and allows the company to negotiate favorable terms.
Threat Of New Entrants
The financial services industry is heavily regulated, and new entrants face significant barriers to entry. Additionally, Prudential Financial, Inc. has a strong brand and established distribution networks, making it difficult for new entrants to gain traction.
Intensity Of Rivalry
The financial services industry is highly competitive, and Prudential Financial, Inc. faces intense competition from established players. The company must continually innovate and invest in its products and services to remain competitive.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 42.87% |
| Debt Cost | 10.57% |
| Equity Weight | 57.13% |
| Equity Cost | 10.65% |
| WACC | 10.62% |
| Leverage | 75.03% |
Prudential Financial, Inc. : Quality Control
Prudential Financial, Inc. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| JXN | Jackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and … |
| MFC.TO | Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance … |
| MET | MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and … |
| TFC | Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and … |
| AFL | Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers cancer, medical, nursing … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Manulife
A-Score
1-Year Total Return ->
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Truist
A-Score
1-Year Total Return ->
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Jackson Financial
A-Score
1-Year Total Return ->
4
MetLife
A-Score
1-Year Total Return ->
5
Prudential Financial
A-Score
1-Year Total Return ->
6
