Prudential Financial Inc. (PRU) Stock

Prudential Financial Inc. trades at a P/E ratio of 22.97, 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 7.51 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.58 suggests the stock may be undervalued relative to its growth rate.

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 1.20 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Prudential Financial Inc. achieves a profit margin of 2.76%, meaning it retains $2.76 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 5.39% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 5.80% and ROA at 0.17%, the company achieves moderate returns on invested capital.

Prudential Financial Inc.'s revenue declined by 7.80% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 54.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INSURANCE - LIFE industry averages for proper context.

Prudential Financial Inc. offers a dividend yield of 5.08%, paying $5.30 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 Aug 19, 2025.

The dividend sustainability can be assessed through the payout ratio - Prudential Financial Inc. pays $5.30 per share in dividends against earnings of $4.52 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 11, 2025.

Prudential Financial Inc. has a market capitalization of $36.7B, 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 351.94M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INSURANCE - LIFE industry, it competes with other firms in this sector.

Prudential Financial Inc.'s book value per share is $86.89, while the current stock price is $103.16, resulting in a price-to-book (P/B) ratio of 1.19. 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.

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 $115.71 implies 12.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:02 Buy, 13 Hold, 1 Sell, 0The 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.