Prudential Financial (PRU) AI Stock Analysis

• Market Cap: $37.79B
• Dividend Yield: 5%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.88
• Revenue Growth: -19.35%
• EPS Growth: -35.23%
• Country: US
• Employees: 37,936
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 4.26
• Shares Outstanding: 350,000,000
• 10 Day Avg. Volume: 1,907,455
• 30 Day Avg. Volume: 1,729,816
• PEG Ratio: 1.35
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 4.98
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 4.12
• Enterprise Value/Ebitda: 20.25
• 1Y Price Target: $115.50
• Price Target Upside: 6.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 14.46
• Revenue Forecast (FY): $57.19B

• Rating: 76 Outperform
• Price Target: $121.00 ▲(12.07% Upside)

Prudential Financial's overall stock score reflects its strong earnings performance and strategic growth initiatives, as highlighted in the recent earnings call. The company's stable financial position and attractive valuation further support the score. However, challenges such as declining revenue growth and industry-wide headwinds are areas to monitor.

Positive Factors

Strong Cash Flow Generation

Prudential's strong cash flow generation indicates robust financial health and supports its ability to invest in growth opportunities and return value to shareholders.

International Growth

Prudential's significant sales growth in international markets like Japan and Brazil demonstrates its ability to expand and capitalize on global opportunities.

Strategic Partnerships

The partnership with LPL Financial enhances Prudential's distribution capabilities and market reach, supporting long-term growth in retirement income solutions.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can signal challenges in maintaining market share and competitive positioning, impacting long-term profitability.

Jennison Outflows

Continued outflows from Jennison can dampen organic growth and earnings momentum, posing a challenge to Prudential's asset management segment.

Higher Expenses in International Business

Increased expenses in international operations could pressure margins and limit the financial benefits from sales growth in these regions.

Prudential Financial Business Overview & Revenue Model

Company Description

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through eight segments: PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block. The company offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. It also provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; and group life, long-term and short-term group disability, and group corporate-, bank-, and trust-owned life insurance in the United States, primarily to institutional clients for use in connection with employee and membership benefits plans, as well as sells accidental death and dismemberment, and other supplemental health solutions; and provides plan administration services in connection with its insurance coverages. In addition, the company develops and distributes individual variable and fixed annuity products, principally to the mass affluent and affluent markets; and individual variable, term, and universal life insurance products to the mass middle, mass affluent, and affluent markets in the United States. Further, it provides third-party life, health, Medicare, property and casualty, and term life products to retail shoppers through its digital and independent agent channels. The company offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

How the Company Makes Money

Prudential Financial generates revenue through multiple key streams, primarily focusing on its insurance and investment management operations. The company earns income from premiums collected on life insurance policies, which represents a significant portion of its revenue. Additionally, Prudential collects fees from the management of mutual funds and other investment products, including variable annuities. Another substantial revenue source comes from the sales of retirement-related products and services, where Prudential charges fees for asset management and advisory services. The company also benefits from investment income generated from its large portfolio of fixed-income and equity investments. Significant partnerships with financial advisors, broker-dealers, and other financial institutions enhance Prudential's distribution capabilities and market reach, contributing to its overall earnings growth.

Prudential Financial Financial Statement Overview

Summary

Prudential Financial demonstrates a stable financial position with strong cash flow generation and improved operational efficiency. However, the decline in revenue growth and return on equity are areas of concern. The company has managed to reduce leverage, which is a positive sign for future stability.

Income Statement

Prudential Financial's income statement shows mixed results. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 2.66%, which is concerning. However, the company maintains a stable gross profit margin of around 20.98% and a net profit margin of 4.68%. The EBIT and EBITDA margins have improved over the previous year, indicating better operational efficiency. Overall, while profitability is stable, the negative revenue growth is a risk factor.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.63 in the TTM period, indicating a reduction in leverage compared to previous years. Return on equity is at 8.68%, which is reasonable but shows a decline from past performance. The equity ratio remains stable, suggesting a solid asset base. Prudential Financial's balance sheet is stable, but the declining ROE is a concern.

Cash Flow

The cash flow statement shows strong performance with a significant free cash flow growth rate of 153.19% in the TTM period. The operating cash flow to net income ratio is robust at 3.24, indicating strong cash generation relative to net income. The free cash flow to net income ratio is consistently at 1.0, showing efficient cash conversion. Overall, the cash flow position is strong, supporting the company's financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.94B	70.67B	54.27B	56.99B	71.15B	57.03B
Gross Profit	17.33B	17.52B	17.55B	11.89B	28.28B	15.21B
EBITDA	3.52B	3.59B	3.00B	-1.77B	11.04B	134.00M
Net Income	2.61B	2.73B	2.49B	-1.65B	8.87B	-374.00M
Balance Sheet
Total Assets	776.30B	735.59B	721.21B	689.03B	937.58B	940.72B
Cash, Cash Equivalents and Short-Term Investments	71.40B	66.39B	340.75B	329.56B	391.96B	435.06B
Total Debt	22.05B	21.57B	20.87B	21.06B	19.62B	20.95B
Total Liabilities	741.49B	705.46B	691.34B	657.11B	874.97B	872.51B
Stockholders Equity	32.09B	27.87B	27.82B	30.59B	61.88B	67.42B
Cash Flow
Free Cash Flow	5.27B	8.50B	6.51B	5.16B	10.55B	8.28B
Operating Cash Flow	5.27B	8.50B	6.51B	5.16B	9.81B	8.37B
Investing Cash Flow	-27.84B	-28.59B	-12.12B	-7.64B	-5.34B	-16.21B
Financing Cash Flow	19.80B	19.39B	7.74B	4.93B	-3.01B	4.88B

Prudential Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRU, the sentiment is Positive. The current price of 107.97 is above the 20-day moving average (MA) of 104.77, above the 50-day MA of 102.60, and above the 200-day MA of 102.75, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRU.

Prudential Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFL	77 Outperform	$57.94B	14.41	15.58%	2.06%	2.31%	15.46%
PRU	76 Outperform	$37.79B	14.80	8.36%	5.00%	-19.35%	-35.23%
PUK	73 Outperform	$36.42B	11.11	20.19%	1.67%	42.45%	304.26%
UNM	72 Outperform	$12.78B	14.88	8.35%	2.30%	1.80%	-44.44%
GL	71 Outperform	$10.78B	9.81	22.28%	0.79%	3.73%	17.47%
MET	69 Neutral	$50.29B	14.37	12.84%	2.94%	0.82%	7.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Prudential Financial Corporate Events

Prudential Financial’s Earnings Call Highlights Strong Growth

Prudential Financial’s recent earnings call conveyed a predominantly positive sentiment, underscored by record-breaking pretax adjusted operating income and robust sales growth across multiple segments. While challenges such as Jennison outflows and surrender activity in Japan were acknowledged, the overall tone remained optimistic, reflecting the company’s strong performance and strategic initiatives for growth.

Prudential Financial Reports Strong Q3 2025 Results

Prudential Financial, Inc. is a global financial services leader and investment manager, operating in sectors such as insurance, investment management, and retirement solutions across multiple continents, including the United States, Asia, Europe, and Latin America.

Prudential Financial Reports Strong Q3 2025 Income Growth

Prudential Financial, Inc. reported a substantial increase in net income for the third quarter of 2025, reaching $1.431 billion compared to $448 million in the same period of 2024. The company’s adjusted operating income also saw a significant rise, driven by growth across all business segments, including PGIM, U.S. Businesses, and International Businesses. This performance reflects favorable market conditions and strategic initiatives aimed at margin expansion and addressing global retirement opportunities. Prudential’s efforts to evolve into a unified asset manager model and its focus on delivering long-term value for shareholders have positioned it as a global leader in investment, insurance, and retirement security.

The most recent analyst rating on (PRU) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial Exceeds Q3 2025 Revenue Expectations

Prudential Financial disclosed preliminary financial information for the quarter ended September 30, 2025, indicating that the PGIM segment managed $1.47 trillion in assets. The company reported approximately $65 million in other related revenues for PGIM and an estimated $70 – $90 million in alternative investment income from its General Account, exceeding near-term expectations. These results are unaudited and could differ from the final figures, impacting stakeholders’ insights into the company’s financial health.

The most recent analyst rating on (PRU) stock is a Hold with a $118.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial Appoints Joseph Wolk as New Director

On September 30, 2025, Prudential Financial announced the election of Joseph J. Wolk as an independent director to its Board of Directors, effective immediately. Wolk, who is currently the executive vice president and chief financial officer at Johnson & Johnson, brings extensive financial strategy and operational expertise to Prudential, which is expected to enhance the company’s growth and evolution.

The most recent analyst rating on (PRU) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.