Principal Financial Group Inc. (PFG) Stock

Principal Financial Group Inc. trades at a P/E ratio of 16.66, 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 8.94 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 1.03, Principal Financial Group Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.61 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 7.53%, meaning it retains $7.53 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 14.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 10.40% and ROA at 0.29%, the company achieves moderate returns on invested capital.

Principal Financial Group Inc.'s revenue declined by 14.80% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 20.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against ASSET MANAGEMENT industry averages for proper context.

Principal Financial Group Inc. offers a dividend yield of 3.58%, paying $2.96 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 Sep 4, 2025.

The dividend sustainability can be assessed through the payout ratio - Principal Financial Group Inc. pays $2.96 per share in dividends against earnings of $4.95 per share, resulting in a payout ratio of 59.80%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Sep 26, 2025.

Principal Financial Group Inc. has a market capitalization of $18.4B, 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 222.77M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ASSET MANAGEMENT industry, it competes with other firms in this sector.

Principal Financial Group Inc.'s book value per share is $51.15, while the current stock price is $82.43, resulting in a price-to-book (P/B) ratio of 1.61. 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 $86.00 implies 4.3% 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.