PRU - Prudential Financial Inc.

Stock Details

Prudential Financial Inc. (PRU), a prominent company in the finance sector within the life insurance industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $105.88. Over the past 52 weeks, it has ranged between $89.25 and $127.36. This places the current price at 83.1% of its 52-week high and 18.6% above its 52-week low. Recent trading volume was recorded at 74. The International Securities Identification Number (ISIN) for this stock is US7443201022.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

16.90

Near market average

Forward P/E

8.24

Earnings expected to grow

PEG Ratio

0.70

Potentially undervalued

Price to Book

1.27

EPS (TTM)

$6.34

Price to Sales

0.63

Beta

1.05

Similar volatility to market

How is PRU valued relative to its earnings and growth?

Prudential Financial Inc. trades at a P/E ratio of 16.90, 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 8.24 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.70 suggests the stock may be undervalued relative to its growth rate.

What is PRU's risk profile compared to the market?

With a beta of 1.05, Prudential Financial 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 1.27 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

3.80%

Operating Margin

6.83%

Return on Equity

7.91%

Return on Assets

0.23%

Revenue Growth (YoY)

-42.70%

Earnings Growth (YoY)

-37.20%

How profitable and efficient is PRU's business model?

Prudential Financial Inc. achieves a profit margin of 3.80%, meaning it retains $3.80 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 6.83% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 7.91% and ROA at 0.23%, the company achieves moderate returns on invested capital.

What are PRU's recent growth trends?

Prudential Financial Inc.'s revenue declined by 42.70% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 37.20% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against LIFE INSURANCE industry averages for proper context.

Dividend Information

Dividend Per Share

$5.25

Dividend Yield

5.04%

Ex-Dividend Date

5/20/2025

Dividend Date

6/12/2025

What dividend income can investors expect from PRU?

Prudential Financial Inc. offers a dividend yield of 5.04%, paying $5.25 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/20/2025.

How reliable is PRU's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Prudential Financial Inc. pays $5.25 per share in dividends against earnings of $6.34 per share, resulting in a payout ratio of 82.81%. 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 6/12/2025.

Company Size & Market

Market Cap

$37.92B

Shares Outstanding

354.01M

Book Value/Share

$84.41

Asset Type

Common Stock

What is PRU's market capitalization and position?

Prudential Financial Inc. has a market capitalization of $37.92B, 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 354.01M shares outstanding, the company's ownership is relatively concentrated. As a participant in the LIFE INSURANCE industry, it competes with other firms in this sector.

How does PRU's price compare to its book value?

Prudential Financial Inc.'s book value per share is $84.41, while the current stock price is $105.88, resulting in a price-to-book (P/B) ratio of 1.25. 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.

Analyst Ratings

Analyst Target Price

$113.29

7.00% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for PRU?

16 analysts cover PRU with 13% 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 $113.29 implies 7.0% upside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on PRU?

Current analyst recommendations:02 Buy, 13 Hold, 01 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.

Fundamentals last updated: Jul 1, 2025, 03:07 AM

Prudential Financial Inc. (PRU) Stock