Fact based stock research
Prudential (LSE:PRU)

GB0007099541

How to read the free ranks

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 stock research in summary

prudentialplc.com

ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), Prudential (Life & Health Insurance, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Prudential are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives) but show below-average growth (Growth Rank of 19), and are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on Prudential's financial characteristics. As the company Prudential's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 19) and risky financing practices (Obermatt Safety Rank of 27), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 55% of comparable companies, may indicate 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. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	19
Safety Rank	27
Combined Rank	12

Country	United Kingdom
Industry	Life & Health Insurance
Index	FTSE All Shares, FTSE 100, FTSE 350, SDG 1, SDG 13, SDG 3, SDG 8
Size class	X-Large

This stock has achievements: Top 10 Stock.

26-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Prudential

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	5	5	21	55
GROWTH
GROWTH	7	45	59	19
SAFETY
SAFETY	63	27	27	27
SENTIMENT
SENTIMENT	n/a	7	53	^new
360° VIEW
360° VIEW	n/a	5	63	^new

Most recent update of the stock research: 26-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Prudential is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	5	5	21	55
GROWTH
GROWTH	7	45	59	19
SAFETY
SAFETY	63	27	27	27
COMBINED
COMBINED	34	12	12	12

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Prudential the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Prudential shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Prudential. Price-to-Sales (P/S) is 69, which means that the stock price compared with what market professionals expect for future sales is lower than for 69% of comparable companies, indicating a good value regarding Prudential's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 74. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 11% of all competitors have even lower dividend yields than Prudential (a Dividend Yield Rank of 11). 89% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Prudential's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. 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)	53	26	34	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	17	38	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	2	7	40	74
DIVIDEND YIELD
DIVIDEND YIELD	18	5	10	11
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	5	5	21	55

Last update of Value Rank: 26-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Prudential; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Prudential 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 three out of four indicators below-average for Prudential. While Sales Growth ranks at 91, professionals currently expect the company to grow more than 91% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 12, which means that, currently, professionals expect the company to grow its profits less than 88% of its competitors, and Capital Growth has a low rank of 49. Historic stock returns were also below average with a current Stock Returns rank of 1 which means that the stock returns have recently been below 99% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. 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 isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	1	100	94	91
PROFIT GROWTH
PROFIT GROWTH	62	50	24	12
CAPITAL GROWTH
CAPITAL GROWTH	n/a	27	93	49
STOCK RETURNS
STOCK RETURNS	18	9	3	1
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	45	59	19

Last update of Growth Rank: 26-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Prudential.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company Prudential has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Prudential is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Prudential. Leverage is at a rank of 75, meaning the company has a below-average debt-to-equity ratio. It has less debt than 75% of its competitors. Liquidity is also good at a rank of 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 20, 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 80% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), Prudential has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Prudential. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Prudential and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	56	46	72	75
REFINANCING
REFINANCING	58	20	20	20
LIQUIDITY
LIQUIDITY	94	58	16	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63	27	27	27

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Prudential and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	72	82	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	21	53	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	15	19	^new
MARKET PULSE
MARKET PULSE	n/a	30	51	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	7	53	^new

Last update of Sentiment Rank: 26-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Prudential.
Upgrade to a Premium Account to access the latest ranks.