Principal Financial Group Inc. (PFG) Stock

Principal Financial Group Inc. trades at a P/E ratio of 16.96, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 9.94 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.50 indicates reasonable value when growth is considered.

With a beta of 1.00, Principal Financial Group Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.58 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Principal Financial Group Inc. achieves a profit margin of 6.89%, meaning it retains $6.89 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 1.72% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.73% and ROA at 0.28%, the company achieves moderate returns on invested capital.

Principal Financial Group Inc.'s revenue declined by 8.80% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 90.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against ACCIDENT & HEALTH INSURANCE industry averages for proper context.

Principal Financial Group Inc. offers a dividend yield of 3.84%, paying $2.91 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/2/2025.

The dividend sustainability can be assessed through the payout ratio - Principal Financial Group Inc. pays $2.91 per share in dividends against earnings of $4.67 per share, resulting in a payout ratio of 62.31%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 6/27/2025.

Principal Financial Group Inc. has a market capitalization of $17.75B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 224.19M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ACCIDENT & HEALTH INSURANCE industry, it competes with other firms in this sector.

Principal Financial Group Inc.'s book value per share is $49.86, while the current stock price is $80.98, resulting in a price-to-book (P/B) ratio of 1.62. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

12 analysts cover PFG with 25% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $82.50 implies 1.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 1 Buy, 6 Hold, 2 Sell, 1 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.