# Prudential Financial, Inc. (PRU) — Stock CV

Prudential Financial, Inc. 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.

> 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.

## Identity

- **Ticker**: PRU
- **Sector**: Financial Services
- **Industry**: Life Insurance
- **Headquarters**: NEWARK, NJ
- **Employees**: 36 824
- **Website**: https://www.prudential.com
- **Market cap**: $39.0B
- **Last price**: $113.09
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $64.8B
- **Net income**: $3.92B
- **Free cash flow**: $11.0B
- **Net cash**: $856M
- **P/E**: 10.0
- **Revenue growth (YoY)**: 9.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 95 |
| Growth | 20 |
| Profitability | 49 |
| Health | 35 |
| Quality | 60 |
| Moat | 11 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +9.4% YoY
- [x] Profitable — $3.92B TTM
- [x] Profit growing — +31.1% YoY
- [x] Generates cash — $11.0B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $39.0B market cap
- [x] Not printing shares — -4.3% shares over ~5y
- [x] Proven track record — 8/10 profitable years
- [ ] Financially stable — health score 10/100
- [x] Pays a dividend — yield 4.99%
- [x] Valuation not extreme — P/E 10.0

## Experience (career milestones)

- **FY2023** — Became debt-free: cash now exceeds total debt
- **2019** — Prudential was the largest insurance provider in the United States with $815.1 billion in total assets
- **2019** — The company agreed to acquire online startup Assurance IQ Inc
- **FY2017** — Best year on record: $7.86B net income
- **FY2016** — First recorded profitable year: $4.37B net income
- **FY2016** — Revenue already above $50B: $58.8B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2013** — The company acquired the individual life insurance business from The Hartford for $615 million in cash
- **2011** — The company acquired AIG Edison and AIG Star both in Japan from American International Group, Inc…
- **2008** — This acquisition bolstered Prudential's operations in Asia while giving cash to AIG to pay back the federal…
- **2004** — The company acquired the retirement business of CIGNA Corporation
- **May 1, 2003** — Prudential formalized the acquisition of American Skandia, the largest distributor of variable…
- **1981** — The company acquired Bache & Co., a stock brokerage service that operated as a wholly owned subsidiary…
- **1875** — Started in Newark, New Jersey, in 1875, Prudential was originally called The Widows and Orphans Friendly Society,…

## 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

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $70.9B | $7.72B | $9.81B |
| FY2022 | $60.0B | -$1.44B | $5.16B |
| FY2023 | $54.0B | $2.49B | $6.51B |
| FY2024 | $70.4B | $2.73B | $8.50B |
| FY2025 | $60.8B | $3.58B | $6.27B |

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