Principal Financial (PFG) AI Stock Analysis

• Market Cap: $17.83B
• Dividend Yield: 3.67%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.95
• Revenue Growth: 12.33%
• EPS Growth: N/A
• Country: US
• Employees: 19,700
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 2.10
• Shares Outstanding: 219,693,850
• 10 Day Avg. Volume: 1,307,919
• 30 Day Avg. Volume: 1,162,288
• PEG Ratio: 0.07
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 3.86
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 17.08
• 1Y Price Target: $88.40
• Price Target Upside: 7.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $92.00 ▲(11.60% Upside)

Principal Financial's overall stock score reflects a stable financial position with strong earnings growth and capital returns, as highlighted in the earnings call. The technical indicators suggest a positive trend, and the valuation is fair with a good dividend yield. However, challenges in revenue growth and some operational pressures slightly temper the outlook.

Positive Factors

Strong Financial Performance

The consistent growth in earnings per share reflects robust operational performance and strategic execution, indicating a strong foundation for future growth.

Capital Returns to Shareholders

Significant capital returns, including share repurchases and dividend increases, demonstrate financial strength and commitment to shareholder value.

Strong Performance in Global Asset Management

The substantial increase in asset management sales highlights effective market positioning and growth potential in a key business segment.

Negative Factors

Revenue Growth Challenges

The decline in revenue growth suggests potential difficulties in expanding market share, which could impact long-term business sustainability.

Cash Flow Decline

A decrease in free cash flow growth may limit the company's ability to invest in new opportunities and maintain dividend payouts, affecting future growth.

Actuarial Assumption Review Impact

Unfavorable impacts from actuarial reviews can lead to earnings volatility, affecting predictability and potentially investor confidence.

Principal Financial Business Overview & Revenue Model

Company Description

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.

How the Company Makes Money

Principal Financial Group generates revenue through several key streams. Its primary sources of income include premiums from life and health insurance products, fees from asset management services, and commissions from retirement plan services. The company earns premiums from its insurance offerings that provide financial protection to individuals and businesses. Additionally, it collects management fees on assets under management in its investment portfolios, which include mutual funds, retirement accounts, and other investment products. PFG also generates revenue through advisory services related to financial planning and investment strategies. Significant partnerships with financial institutions and corporations enhance its distribution channels and broaden its market reach, further contributing to its earnings.

Principal Financial Financial Statement Overview

Summary

Principal Financial exhibits a stable financial position with strong cash generation capabilities and a conservative leverage profile. However, the decline in revenue growth and profitability margins in the TTM period suggests potential challenges in maintaining growth momentum. The company should focus on improving operational efficiency and exploring growth opportunities to enhance financial performance.

Income Statement

Principal Financial's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 4.06%, reflecting challenges in maintaining top-line growth. However, the company maintains a stable gross profit margin of 45.11% and a net profit margin of 7.53%, which are respectable for the industry. The EBIT and EBITDA margins have decreased to 8.93%, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.35, suggesting a conservative leverage position. The return on equity (ROE) is 10.14%, which is decent but has decreased from previous years, indicating a potential decline in shareholder returns. The equity ratio stands at 3.53%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 12.69% in the TTM period, which could impact future investments and dividends. However, the operating cash flow to net income ratio is robust at 181.59%, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, demonstrating efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.13B	16.13B	13.67B	17.54B	14.43B	14.74B
Gross Profit	6.83B	7.35B	5.90B	11.04B	7.08B	6.46B
EBITDA	1.35B	2.15B	1.01B	6.28B	2.19B	1.95B
Net Income	1.14B	1.57B	623.20M	4.76B	1.58B	1.40B
Balance Sheet
Total Assets	323.10B	313.66B	305.05B	303.00B	321.21B	313.47B
Cash, Cash Equivalents and Short-Term Investments	30.94B	29.94B	27.19B	67.74B	80.49B	81.56B
Total Debt	3.95B	4.11B	3.99B	4.08B	4.36B	4.36B
Total Liabilities	311.25B	302.19B	293.84B	292.70B	304.70B	296.60B
Stockholders Equity	11.42B	11.09B	10.92B	10.00B	16.13B	16.56B
Cash Flow
Free Cash Flow	4.30B	4.53B	3.69B	3.06B	3.09B	3.63B
Operating Cash Flow	4.38B	4.60B	3.79B	3.17B	3.22B	3.74B
Investing Cash Flow	-4.97B	-5.40B	-1.35B	1.06B	-5.66B	-5.03B
Financing Cash Flow	-563.40M	300.30M	-2.59B	-1.72B	1.92B	1.62B

Principal Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFG, the sentiment is Positive. The current price of 82.44 is above the 20-day moving average (MA) of 80.73, above the 50-day MA of 81.31, and above the 200-day MA of 79.10, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 50.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFG.

Principal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$32.65B	8.20	17.81%	―	16.68%	-28.54%
HIG	74 Outperform	$35.73B	10.48	20.07%	1.66%	7.11%	22.52%
PFG	73 Outperform	$17.83B	11.82	13.74%	3.67%	12.33%	―
AEG	69 Neutral	$11.92B	8.24	14.42%	5.80%	-6.19%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AIG	59 Neutral	$42.28B	13.68	7.68%	2.11%	-23.02%	52.43%
EQH	54 Neutral	$14.64B	―	-41.33%	2.27%	4.80%	-155.12%

Principal Financial Corporate Events

Principal Financial Group Reports Strong Q3 2025 Earnings

Principal Financial Group, a global financial services company, is dedicated to improving the wealth and well-being of individuals and businesses through a range of services including insurance, investment, and retirement solutions. The company operates primarily in the financial sector and is recognized for its ethical practices and inclusive workforce.

Principal Financial Reports $784.3 Billion in Assets

As of September 30, 2025, Principal Financial Group reported assets under management totaling $784.3 billion. This includes $601.6 billion managed by Principal Asset Management – Investment Management and $150.7 billion managed by Principal Asset Management – International Pension. The report highlights the company’s exposure to various market segments, such as small and mid-cap equities, high yield securities, and emerging market exchange rates, which are crucial during periods of market volatility.

The most recent analyst rating on (PFG) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Principal Financial stock, see the PFG Stock Forecast page.

Principal Financial Appoints Deanna Strable as New Chair

On August 17, 2025, Principal Financial Group’s Board of Directors elected Deanna D. Strable as the new Chair of the Board, effective September 2, 2025. She succeeds Daniel J. Houston, who will conclude his service on the Board after a distinguished 40-year career with the company. Strable, who has been with Principal since 1990, has played a pivotal role in the company’s growth and transformation, holding various leadership positions. Her appointment is expected to continue driving innovation, inclusion, and growth, enhancing shareholder value and customer satisfaction.

The most recent analyst rating on (PFG) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Principal Financial stock, see the PFG Stock Forecast page.

Principal Financial Group Reports Strong Q2 2025 Results

Principal Financial Group is a global financial services company specializing in retirement, insurance, and asset management solutions, with a strong focus on improving the financial well-being of individuals and businesses worldwide.

Principal Financial’s Earnings Call: Growth Amid Challenges

Principal Financial’s recent earnings call painted a picture of robust earnings growth and increased capital returns to shareholders, while also acknowledging ongoing challenges. The sentiment was a blend of positive achievements and the hurdles that remain, such as negative net cash flows and market volatility impacting revenue.