Prudential (PUK) AI Stock Analysis

• Market Cap: $35.50B
• Dividend Yield: 1.73%
• Average Volume (3M): 823.01K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.88
• Revenue Growth: 42.48%
• EPS Growth: 304.90%
• Country: US
• Employees: 15,412
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Life
• EPS (TTM): 0.99
• Shares Outstanding: 1,284,814,300
• 10 Day Avg. Volume: 740,215
• 30 Day Avg. Volume: 823,014
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 4.17
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 7.43
• 1Y Price Target: $30.49
• Price Target Upside: 9.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $28.00 ▲(0.72% Upside)

Prudential's overall stock score is driven by strong earnings call performance and positive technical trends. Financial stability is a key strength, but revenue volatility and valuation concerns slightly dampen the outlook. The company's strategic initiatives and capital management provide a positive long-term perspective.

Positive Factors

New Business Profit Growth

The consistent growth in new business profit indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Dividend Increase and Share Buyback

Increased dividends and share buybacks reflect strong cash flow and a commitment to returning value to shareholders, enhancing investor confidence.

Health Insurance Joint Venture in India

The joint venture in India represents a strategic expansion into a high-growth market, potentially increasing market share and revenue diversity.

Negative Factors

Revenue Volatility

Revenue volatility can hinder long-term planning and investor confidence, requiring strategic adjustments to stabilize income streams.

Impact of Regulatory Changes in Hong Kong

Regulatory changes in Hong Kong pose risks to profitability and market operations, necessitating adaptation to maintain competitive positioning.

Negative Operating Variances

Persistent negative operating variances indicate inefficiencies that could impact profitability, requiring cost management improvements.

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 primarily through premiums collected from its various insurance products, which include life, health, and annuity policies. The company also earns income from investment management fees charged on assets under management, as well as from the performance of its investment portfolios. Additionally, Prudential benefits from fees associated with its asset management services, which serve both individual and institutional clients. Key partnerships with financial advisors and institutions enhance the company's distribution capabilities, while strategic investments in technology and customer engagement initiatives contribute to its revenue growth. Overall, Prudential's diversified product offerings and strong market presence in multiple regions enable it to maintain a robust revenue stream.

Prudential Financial Statement Overview

Summary

Prudential's financial performance shows strengths in financial stability and cash management, but faces challenges with 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.14B	11.97B	-27.59B	26.50B	36.25B
Gross Profit	8.14B	11.97B	-27.59B	26.50B	36.25B
EBITDA	2.93B	3.06B	0.00	0.00	3.44B
Net Income	2.29B	1.70B	-1.01B	-2.04B	2.12B
Balance Sheet
Total Assets	181.88B	174.07B	160.25B	188.23B	516.10B
Cash, Cash Equivalents and Short-Term Investments	2.44B	1.59B	1.81B	7.17B	44.05B
Total Debt	4.72B	4.87B	5.08B	8.24B	9.08B
Total Liabilities	163.20B	156.08B	143.35B	169.12B	493.98B
Stockholders Equity	17.49B	17.82B	16.73B	18.94B	20.88B
Cash Flow
Free Cash Flow	3.51B	788.00M	1.04B	242.00M	2.72B
Operating Cash Flow	3.61B	832.00M	1.08B	278.00M	2.77B
Investing Cash Flow	-832.00M	-360.00M	-39.00M	-726.00M	-1.19B
Financing Cash Flow	-1.70B	-1.21B	-2.52B	1.26B	-258.00M

Prudential Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.80
• 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 PUK, the sentiment is Positive. The current price of 27.8 is above the 20-day moving average (MA) of 26.51, above the 50-day MA of 25.61, and above the 200-day MA of 20.79, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 69.56 is Neutral, neither overbought nor oversold. The STOCH value of 91.13 is Negative, 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
GL	77 Outperform	$11.37B	11.21	20.02%	0.73%	4.02%	13.01%
MET	73 Outperform	$52.69B	13.43	15.61%	2.81%	6.17%	59.22%
AFL	71 Outperform	$57.35B	24.24	9.15%	2.09%	-17.57%	-53.18%
UNM	69 Neutral	$12.55B	8.82	13.95%	2.33%	1.69%	22.65%
PUK	68 Neutral	$35.50B	10.81	20.05%	1.73%	42.48%	304.90%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
PRU	68 Neutral	$37.26B	23.42	5.57%	5.06%	-1.80%	-42.18%