Prudential (PRU) AI Stock Analysis

• Market Cap: £26.58B
• Dividend Yield: 1.73%
• Average Volume (3M): 5.99M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.61
• Revenue Growth: 37.94%
• EPS Growth: 291.37%
• Country: UK
• Employees: 15,412
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.37
• Shares Outstanding: 2,565,342,000
• 10 Day Avg. Volume: 5,241,124
• 30 Day Avg. Volume: 5,985,905
• PEG Ratio: 0.21
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 4.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,228.83
• Price Target Upside: 17.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: ―

Prudential's overall stock score reflects strong financial performance and positive technical indicators. The company's strategic investments and capital management plans are promising, despite challenges in certain markets and regulatory environments. The valuation remains attractive, supporting a favorable outlook.

Positive Factors

Cash Flow Management

The significant growth in free cash flow indicates effective cash management, enhancing Prudential's ability to invest in growth opportunities and return capital to shareholders, supporting long-term financial health.

Strategic Investments

Investments in technology modernization and operational effectiveness position Prudential to enhance customer engagement and drive efficiencies, strengthening its competitive edge in the financial services industry.

Shareholder Returns

The commitment to substantial shareholder returns through dividends and buybacks reflects strong capital management and confidence in sustained financial performance, appealing to long-term investors.

Negative Factors

Revenue Volatility

Inconsistent revenue trends can hinder long-term planning and investment, posing challenges to maintaining steady growth and potentially impacting investor confidence.

Regulatory Challenges

Regulatory changes in key markets like China can disrupt operations and require strategic adjustments, potentially affecting Prudential's growth trajectory and market positioning.

Agency Performance

Declines in agency performance can impact sales and market penetration, necessitating strategic efforts to enhance recruitment and productivity to sustain growth in these regions.

Prudential Business Overview & Revenue Model

Company Description

Prudential plc, through its subsidiaries, provides life and health insurance, and retirement and asset management solutions to individuals in Asia, and Africa. It offers health and protection, as well as savings products, such as participating, linked, and other traditional products. The company also provides insurance against common critical illnesses, including cancer, stroke, and heart attack; and tropical disease protection, such as dengue, malaria, and measles. It manages assets across equity, fixed income, multi asset, quantitative, and alternative strategies on behalf of institutional and individual investors. Prudential plc provides its products and services through agency sales force, banks, and brokers. The company was founded in 1848 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Prudential generates revenue through several key streams. The primary source is the sale of insurance products, including life insurance and annuities, where premiums paid by policyholders provide a steady income stream. Additionally, Prudential earns investment income from the assets held in its insurance and retirement portfolios. The company also derives revenue from asset management fees charged for managing mutual funds and other investment vehicles. Significant partnerships with financial institutions and distribution channels enhance Prudential's reach and customer base, contributing to its earnings. Furthermore, Prudential's focus on retirement solutions capitalizes on the growing demand for financial security in retirement, positioning the company to benefit from demographic trends.

Prudential Financial Statement Overview

Summary

Prudential's financial performance is mixed. The company shows strong profitability with a net profit margin of 28.07% and robust cash flow management, evidenced by a 345.43% growth in free cash flow. However, revenue volatility and a slight decline in stockholders' equity present challenges.

Income Statement

Prudential has shown inconsistent revenue trends with a significant decline in total revenue in 2024 compared to 2023. Despite this, the company achieved a strong net profit margin of 28.07% in 2024, up from 14.21% in 2023, indicating improved profitability. However, the absence of EBIT and EBITDA data limits a comprehensive analysis of operational efficiency.

Balance Sheet

The company's balance sheet reflects a relatively stable debt-to-equity ratio of 0.27 in 2024, down from 0.27 in 2023, which suggests prudent leverage management. The equity ratio stands at 9.62%, indicating moderate financial stability. However, the overall stockholders' equity has decreased slightly, which could pose future challenges.

Cash Flow

Prudential's cash flow has improved significantly, with a strong free cash flow growth rate of 345.43% from 2023 to 2024, and a robust operating cash flow to net income ratio of 1.58 in 2024. This indicates effective cash management and a healthy ability to convert income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.93B	8.14B	11.97B	-27.59B	26.50B	3.25B
Gross Profit	3.93B	8.14B	11.97B	-27.59B	25.07B	2.94B
EBITDA	896.00	3.12B	2.27B	-443.00M	3.00B	3.44B
Net Income	2.19B	2.29B	1.70B	-1.01B	-2.04B	2.12B
Balance Sheet
Total Assets	199.12M	181.88B	174.07B	160.25B	188.23B	516.10B
Cash, Cash Equivalents and Short-Term Investments	5.64M	2.44B	1.59B	1.81B	5.30B	44.05B
Total Debt	5.33M	4.72B	4.87B	5.08B	8.24B	9.08B
Total Liabilities	179.68M	163.20B	156.08B	143.35B	169.12B	361.22B
Stockholders Equity	18.12M	17.49B	17.82B	16.73B	18.94B	20.88B
Cash Flow
Free Cash Flow	2.53B	3.51B	788.00M	1.04B	242.00M	2.72B
Operating Cash Flow	2.66B	3.61B	832.00M	1.08B	278.00M	2.77B
Investing Cash Flow	-912.41M	-832.00M	-360.00M	-39.00M	-726.00M	-1.19B
Financing Cash Flow	-2.05B	-1.70B	-1.21B	-2.52B	1.26B	-258.00M

Prudential Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1042.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PRU, the sentiment is Positive. The current price of 1042 is above the 20-day moving average (MA) of 1020.94, above the 50-day MA of 985.44, and above the 200-day MA of 822.39, indicating a bullish trend. The MACD of 17.35 indicates Positive momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 66.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PRU.

Prudential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEZ	78 Outperform	£5.32B	7.58	24.54%	2.80%	6.00%	-24.29%
AV	73 Outperform	£20.99B	30.75	8.22%	5.97%	-19.71%	-53.86%
PRU	70 Outperform	£26.58B	10.44	20.51%	1.73%	37.94%	291.37%
PHNX	58 Neutral	£6.46B	-10.19	-63.85%	8.46%	-34.62%	―
MNG	54 Neutral	£5.98B	-102.56	-10.97%	8.01%	9.86%	-134.41%
LGEN	50 Neutral	£13.28B	59.80	5.38%	9.11%	-38.98%	-31.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Prudential Corporate Events

Prudential Announces Share Buyback of 297,182 Shares

Prudential plc announced the repurchase of 297,182 of its ordinary shares from Merrill Lynch International, as part of a buyback program authorized at the company’s 2025 Annual General Meeting. The shares were bought at an average price of £10.2606 and will be canceled, reducing the total number of shares in issue to 2,568,758,295. This transaction is expected to impact the company’s share capital structure and could influence shareholder value by potentially increasing earnings per share.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential Executives Acquire Shares to Align Interests

Prudential plc announced the acquisition of shares by several key executives, including the Chief Financial Officer and Chief Human Resources Officer, through the Prudential All Employee Share Purchase Plan. These transactions, conducted on the London Stock Exchange, reflect the company’s commitment to aligning its leadership with shareholder interests, potentially enhancing stakeholder confidence in Prudential’s strategic direction.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential plc Announces Share Buyback and Cancellation

Prudential plc has repurchased 284,576 of its ordinary shares from Merrill Lynch International as part of a buyback program authorized by shareholders. The shares, purchased at an average price of £10.3275, will be canceled, reducing the total number of shares in issue to 2,569,055,477. This transaction is expected to impact the company’s share capital structure and could influence shareholder value by increasing earnings per share.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential Offers Scrip Dividend Alternative for 2025 Interim Dividend

Prudential plc announced a scrip dividend alternative for its 2025 first interim dividend, allowing shareholders to receive dividends in the form of new shares. The Scrip Reference Price for these new shares is set at US$13.422519, calculated based on the average market price of Prudential’s shares on the London Stock Exchange. This initiative reflects Prudential’s ongoing efforts to offer flexible dividend options to its shareholders, potentially impacting its market positioning by enhancing shareholder value.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential Announces Share Buyback to Optimize Capital Structure

Prudential plc announced the repurchase of 288,690 of its ordinary shares from Merrill Lynch International, following shareholder approval at the company’s 2025 Annual General Meeting. The shares were bought at an average price of £10.1849 and will be canceled, reducing the total number of shares in issue to 2,569,340,053. This transaction aligns with regulatory requirements and is part of Prudential’s strategy to manage its share capital effectively, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential Announces Share Repurchase and Cancellation

Prudential plc has repurchased 267,431 of its ordinary shares from Merrill Lynch International, with plans to cancel these shares, reducing the total shares in issue to 2,569,628,743. This transaction, conducted under the authority granted by shareholders and in accordance with the London Stock Exchange’s Listing Rules, reflects Prudential’s strategic financial management and may impact shareholder voting rights and interests.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential plc Executes Share Buyback to Optimize Capital Structure

Prudential plc announced the repurchase of 265,000 of its ordinary shares from Merrill Lynch International, as part of a buyback program authorized by shareholders. The shares were bought at an average price of £9.7774 and will be canceled, reducing the total number of shares and voting rights to 2,569,896,174. This move is part of Prudential’s strategy to manage its capital structure and could impact shareholder value by increasing earnings per share.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.20 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.

Prudential plc Announces Share Buyback and Cancellation

Prudential plc has repurchased 275,696 of its ordinary shares at an average price of £9.7964 per share from Merrill Lynch International. The company intends to cancel these shares, which will adjust the total number of shares in issue to 2,570,161,174. This transaction is part of an arrangement approved at the company’s 2025 Annual General Meeting and is conducted under the Listing Rules of the London Stock Exchange and the Hong Kong Code on Share Buy-Backs. The move is likely to impact the company’s share structure and could influence shareholder interests and market positioning.

The most recent analyst rating on (GB:PRU) stock is a Buy with a £12.00 price target. To see the full list of analyst forecasts on Prudential stock, see the GB:PRU Stock Forecast page.