# Principal Financial Group, Inc. (PFG) — Stock CV

Principal Financial Group, Inc. is a $23.0B financial services company. Revenue grew 3.7% over the last year, and it keeps 10¢ of every dollar of sales as profit. It trades at 14.7× earnings — in the most expensive third of its own history.

> Principal Financial Group Inc is a financial services provider. It offers various financial products and services including retirement, asset management, and workplace benefits and protection solutions to individuals and institutional clients.

## Identity

- **Ticker**: PFG
- **Sector**: Financial Services
- **Industry**: Accident & Health Insurance
- **Headquarters**: DES MOINES, IA
- **Employees**: 19 700
- **Website**: https://www.principal.com
- **Market cap**: $23.0B
- **Last price**: $107.30
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $15.7B
- **Net income**: $1.56B
- **Free cash flow**: $5.01B
- **Net cash**: $477M
- **P/E**: 14.7
- **Revenue growth (YoY)**: 3.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 75 |
| Growth | 37 |
| Profitability | 49 |
| Health | 35 |
| Quality | 47 |
| Moat | 18 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +3.7% YoY
- [x] Profitable — $1.56B TTM
- [ ] Profit growing — -34.4% YoY
- [x] Generates cash — $5.01B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $23.0B market cap
- [x] Not printing shares — -18.3% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 10/100
- [x] Pays a dividend — yield 3.03%
- [x] Valuation not extreme — P/E 14.7

## Experience (career milestones)

- **2024** — Principal agreed to acquire the employee stock-option plan (ESOP) business from Ascensus
- **FY2022** — Became debt-free: cash now exceeds total debt
- **FY2022** — Best year on record: $4.81B net income
- **2019** — Principal purchased Wells Fargo's institutional retirement and trust business (including 401k, pension,…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $12.4B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **1879** — The bank was founded in 1879 with Temple as president and Phineas Casady as vice president

## Strengths

- Strong cash conversion — FCF is 31.9% of revenue
- Net cash position after subtracting debt from cash

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $14.3B | $1.71B | $3.22B |
| FY2022 | $17.5B | $4.81B | $3.17B |
| FY2023 | $13.7B | $623M | $3.79B |
| FY2024 | $16.1B | $1.57B | $4.60B |
| FY2025 | $15.6B | $1.19B | $4.54B |

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Source: https://stockcv.com/PFG — derived from company filings; may be delayed or incomplete. Information, not investment advice.