Fact based stock research
Prudential Financial (NYSE:PRU)
US7443201022
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Prudential Financial stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), Prudential Financial (Life & Health Insurance, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Prudential Financial are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), are safely financed (Safety Rank of 60, which means low debt burdens), but show below-average growth (Growth Rank of 19). ...read more
RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on Prudential Financial's financial characteristics. As the company Prudential Financial's key financial metrics exhibit good value (Obermatt Value Rank of 97) but low growth (Obermatt Growth Rank of 19) while being safely financed (Obermatt Safety Rank of 60), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 97% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Life & Health Insurance |
| Index | Dividends USA, Diversity USA, SDG 11, SDG 7, D.J. US Insurance, S&P 500 |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Prudential Financial
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 97 |
|
91 |
|
96 |
|
97 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
37 |
|
21 |
|
19 |
|
| SAFETY | ||||||||
| SAFETY | 6 |
|
60 |
|
60 |
|
60 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
1 |
|
24 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
29 |
|
26 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), Prudential Financial (Life & Health Insurance, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Prudential Financial are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), are safely financed (Safety Rank of 60, which means low debt burdens), but show below-average growth (Growth Rank of 19). ...read more
RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on Prudential Financial's financial characteristics. As the company Prudential Financial's key financial metrics exhibit good value (Obermatt Value Rank of 97) but low growth (Obermatt Growth Rank of 19) while being safely financed (Obermatt Safety Rank of 60), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 97% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 97 |
|
91 |
|
96 |
|
97 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
37 |
|
21 |
|
19 |
|
| SAFETY | ||||||||
| SAFETY | 6 |
|
60 |
|
60 |
|
60 |
|
| COMBINED | ||||||||
| COMBINED | 75 |
|
69 |
|
69 |
|
69 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 97 (better than 97% compared with alternatives) for 2022, Prudential Financial shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Prudential Financial. Price-to-Sales is 78 which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value for Prudential Financial's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 88% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 69. Compared with other companies in the same industry, dividend yields of Prudential Financial are expected to be higher than for 93% of all competitors (a Dividend Yield rank of 93). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 97, is a buy recommendation based on Prudential Financial's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Prudential Financial based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 74 |
|
73 |
|
67 |
|
78 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 83 |
|
71 |
|
83 |
|
88 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 88 |
|
70 |
|
72 |
|
69 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 82 |
|
91 |
|
94 |
|
93 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 97 |
|
91 |
|
96 |
|
97 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Prudential Financial shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Prudential Financial. Profit Growth has a rank of 57, which means that currently professionals expect the company to grow its profits more than 57% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 57 (above 57% of alternative investments). But Sales Growth has a below the median rank of 4, which means that, currently, professionals expect the company to grow less than 96% of its competitors, and Capital Growth also has a lower rank of 11. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Prudential Financial. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 68 |
|
14 |
|
10 |
|
4 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 8 |
|
61 |
|
61 |
|
57 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
25 |
|
23 |
|
11 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 92 |
|
89 |
|
45 |
|
57 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 88 |
|
37 |
|
21 |
|
19 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company Prudential Financial has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Prudential Financial is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Prudential Financial. Liquidity is at 84, meaning the company generates more profit to service its debt than 84% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 36, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 64% of its competitors. Leverage is also high at a rank of 30, which means that the company has an above-average debt-to-equity ratio. It has more debt than 70% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), Prudential Financial has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 15 |
|
36 |
|
27 |
|
30 |
|
| REFINANCING | ||||||||
| REFINANCING | 10 |
|
36 |
|
36 |
|
36 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 29 |
|
69 |
|
55 |
|
84 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 6 |
|
60 |
|
60 |
|
60 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
22 |
|
24 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
13 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
41 |
|
48 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
36 |
|
33 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
1 |
|
24 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Prudential Financial from November 14, 2024.
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