Prudential (PUK) AI Stock Analysis

• Market Cap: $41.61B
• Dividend Yield: 1.49%
• Average Volume (3M): 666.48K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.76
• Revenue Growth: 42.45%
• EPS Growth: 304.26%
• Country: US
• Employees: 15,412
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.99
• Shares Outstanding: 1,271,384,200
• 10 Day Avg. Volume: 977,442
• 30 Day Avg. Volume: 666,482
• PEG Ratio: -0.29
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 6.17
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 7.74
• Enterprise Value/Ebitda: 4.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $37.00 ▲(11.11% Upside)

Prudential's overall stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting robust financial performance and strategic execution. While financial stability is a strength, revenue volatility and inconsistent profitability present challenges. The valuation is reasonable, supporting a balanced investment outlook.

Positive Factors

Diversified business model

Prudential’s multi-line insurance and asset management operations across regions provide durable revenue diversification. Multiple distribution channels and fee/investment income reduce single-market dependency, supporting steadier cash flow and resilience through economic cycles.

Capital returns and strategic reinvestment

A clear capital allocation framework and sizable buyback/dividend plan signal sustained free-surplus generation and financial discipline. Concurrent tech investment to modernize operations supports productivity gains and long-term cost efficiency that can enhance ROE and competitive positioning.

Strong Asian new-business growth

Above-market growth in key Asian markets reflects durable product-market fit and scalable distribution (agency/bancassurance). Sustained agency productivity gains strengthen acquisition economics and long-term embedded value growth in high-growth demographics.

Negative Factors

Revenue and profitability volatility

Significant revenue and margin variability undermines earnings predictability and strategic planning. For an insurer, fluctuating underwriting results and investment returns can strain capital planning, making dividend and buyback guidance more vulnerable to market and reserving swings.

Regulatory and market challenges in Asia

Regulatory shifts in China and weaker ASEAN agency performance are structural headwinds that can depress new business volumes, increase compliance costs, and raise capital needs. These factors can materially slow growth in key emerging market franchises over multiple years.

Rising required capital and uneven cash flow

Higher regulatory capital demands and inconsistent free cash flow reduce financial flexibility. Tied-up surplus limits reinvestment or shareholder returns and heightens sensitivity to adverse market moves, making long-term execution and strategic initiatives harder to fund internally.

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 multiple key streams, primarily from premiums collected on life and health insurance policies and investment management fees. The company earns significant income from its insurance segment, where it collects premiums from policyholders and invests those funds in various assets to generate returns. Additionally, Prudential's asset management arm contributes to its revenue by charging fees for managing investment portfolios on behalf of clients. Strategic partnerships with financial institutions and distribution channels also enhance its market reach and revenue potential, allowing Prudential to expand its customer base and improve profitability. Market growth in emerging economies and increasing demand for retirement and health-related products further support the company's earnings.

Prudential Financial Statement Overview

Summary

Prudential's financial performance shows strengths in financial stability and cash management, but is challenged by revenue volatility and inconsistent profitability. The balance sheet is robust, yet income statement metrics are mixed, indicating a need for strategic growth and profitability stabilization.

Income Statement

Prudential has shown a volatile revenue trend, with significant fluctuations over the years. The net profit margin and revenue growth have been inconsistent, as illustrated by the significant drop in total revenue in 2022 and its subsequent partial recovery. The gross profit margin remains stable given that gross profit equals total revenue, but the absence of EBIT and EBITDA for recent years limits a deeper profitability analysis.

Balance Sheet

Prudential's balance sheet indicates moderate leverage with a debt-to-equity ratio that is stable. The equity ratio shows a strong position, suggesting financial stability. Return on Equity (ROE) is positive, reflecting profitability, but fluctuates due to varying net income, posing potential risks in consistent shareholder returns.

Cash Flow

The cash flow statement reveals improvements in operating cash flow, suggesting effective cash management in recent years. However, the free cash flow growth is inconsistent, reflecting variability in capital expenditures and operating cash flows. The operating cash flow to net income ratio indicates a healthy cash conversion cycle, despite some volatility in net income figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.07B	8.14B	11.97B	-27.59B	26.50B	36.25B
Gross Profit	5.39B	8.14B	11.97B	-27.59B	26.50B	36.25B
EBITDA	10.12B	2.93B	3.06B	-233.86M	3.00B	3.44B
Net Income	3.44B	2.29B	1.70B	-1.01B	-2.04B	2.12B
Balance Sheet
Total Assets	199.12B	181.88B	174.07B	160.25B	188.23B	516.10B
Cash, Cash Equivalents and Short-Term Investments	5.64B	2.44B	1.59B	1.81B	7.17B	44.05B
Total Debt	5.33B	4.72B	4.87B	5.08B	8.24B	9.08B
Total Liabilities	179.68B	163.20B	156.08B	143.35B	169.12B	493.98B
Stockholders Equity	18.12B	17.49B	17.82B	16.73B	18.94B	20.88B
Cash Flow
Free Cash Flow	1.89B	3.51B	788.00M	839.48M	242.00M	2.44B
Operating Cash Flow	2.01B	3.61B	832.00M	873.46M	278.00M	2.50B
Investing Cash Flow	-877.00M	-832.00M	-360.00M	-39.00M	-726.00M	-1.20B
Financing Cash Flow	-1.76B	-1.70B	-1.21B	-2.52B	1.26B	36.28M

Prudential Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.30
• 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 PUK, the sentiment is Positive. The current price of 33.3 is above the 20-day moving average (MA) of 32.16, above the 50-day MA of 30.70, and above the 200-day MA of 26.70, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 65.39 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUK.

Prudential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUK	73 Outperform	$41.61B	12.74	20.19%	1.49%	42.45%	304.26%
PRU	70 Outperform	$38.89B	15.23	8.36%	4.73%	-19.35%	-35.23%
GL	70 Outperform	$11.16B	10.16	22.28%	0.74%	3.73%	17.47%
MET	69 Neutral	$51.97B	14.85	12.84%	2.78%	0.82%	7.18%
AFL	68 Neutral	$58.15B	14.46	15.58%	2.10%	2.31%	15.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNM	64 Neutral	$12.71B	14.80	8.35%	2.22%	1.80%	-44.44%