Prudential Financial is one of the largest US life insurers, offering annuities, life insurance, and asset-management products. The United States and Japan are its two largest markets.
It is a $39.0B financial services company. Revenue grew 9.4% over the last year, and it keeps 6¢ of every dollar of sales as profit. It trades at 10.0× earnings — in the cheapest third of its own history.
- Website
- prudential.com
- Location
- Newark, NJ
- Employees
- 36 824
- Sector
- Financial Services
- Founded
- 1875
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation; Growth, Profitability, Health and Moat lag behind.
Valuation95
- P/E vs own history19th pct · 25/25
- FCF yield28.1% · 25/25
- P/S0.6x · 25/25
- EV/EBITDA10.1x · 20/25
Growth20
- Revenue CAGR-3.8% · 0/25
- Net income CAGR-17.5% · 0/25
- EPS CAGR ~5Yn/a · 0/25
- Fwd implied growth25.3% · 20/25
Profitability49
- ROIC11.3% · 12/25
- ROE12.2% · 12/25
- Net margin6.0% · 13/25
- Operating margin8.1% · 12/25
Health35
- Altman Zn/a · 0/25
- Current ration/a · 0/25
- Interest coverage3.7x · 10/25
- Net cash / debtNet cash · 25/25
Quality60
- Piotroski F6/9 · 15/25
- Beneish M-2.76 · 25/25
- FCF conversionn/a · 0/25
- Margin stabilityσ 5.6% · 20/25
Moat11
- ROIC >12% years2/5 yrs · 6/25
- Median gross marginn/a · 0/25
- FCF-positive yearsn/a · 0/25
- Worst-year net marginworst -2.4% · 5/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2023FinancialBecame debt-freecash now exceeds total debt
- 2019MilestonePrudential was the largest insurance provider in the United States with $815.1 billion in total assets
- 2019AcquisitionThe company agreed to acquire online startup Assurance IQ Inc
- FY2017FinancialBest year on record$7.86B net income
- FY2016FinancialFirst recorded profitable year$4.37B net income
- FY2016FinancialRevenue already above $50B$58.8B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2013AcquisitionThe company acquired the individual life insurance business from The Hartford for $615 million in cash
- 2011AcquisitionThe company acquired AIG Edison and AIG Star both in Japan from American International Group, Inc…
- 2008AcquisitionThis acquisition bolstered Prudential's operations in Asia while giving cash to AIG to pay back the federal…
- 2004AcquisitionThe company acquired the retirement business of CIGNA Corporation
- May 1, 2003AcquisitionPrudential formalized the acquisition of American Skandia, the largest distributor of variable…
- 1981AcquisitionThe company acquired Bache & Co., a stock brokerage service that operated as a wholly owned subsidiary…
- 1875FoundedStarted in Newark, New Jersey, in 1875, Prudential was originally called The Widows and Orphans Friendly Society,…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Strong cash conversion — FCF is 16.9% of revenue
- Net cash position after subtracting debt from cash
Watch-outs
- Loss-making in 2 of the recent years
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+9.4% YoY
- Profitable — makes more than it spends$3.92B TTM
- Profit growing — earnings are higher than last year+31.1% YoY
- Generates cash — cash left after running and investing$11.0B TTM
- Debt under control — could handle its obligationsmore cash than debt
- Established company — not a micro-cap — lower blow-up risk$39.0B market cap
- Not printing shares — share count not ballooning — you keep your slice-4.3% shares over ~5y
- Proven track record — years of profitability behind it8/10 profitable years
- Financially stable — balance sheet not near distresshealth score 10/100
- Pays a dividend — returns cash to shareholdersyield 4.99%
- Valuation not extreme — price not wildly above earningsP/E 10.0
Peer comparisonPrudential Financial, Inc. vs 6 largest financial services peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| PRU this company | $39.0B | 10.0 | +9.4% | 6.0% | Strained |
| BRK.A Berkshire Hathaway Inc. | $1.1T | 11.6 | +3.9% | 22.3% | Mixed |
| BRK.B Berkshire Hathaway | $1.1T | 11.6 | +0.0% | 18.0% | Strong |
| JPM JPMorgan Chase & Co. | $886.2B | 13.6 | +13.5% | 32.6% | Strained |
| V VISA Inc. | $723.9B | 31.9 | +14.4% | 50.8% | Solid |
| MA Mastercard Incorporated | $516.4B | 31.7 | +16.0% | 46.3% | Mixed |
| BAC Bank of America Corporation | $380.4B | 11.3 | +15.9% | 27.8% | Mixed |
Head-to-head: PRU vs BRK.A · PRU vs BRK.B · PRU vs JPM
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/PRU
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Deeper analysis of PRU on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $113.09 · market cap $39.0B.