Prudential (PUK) AI Stock Analysis

• Market Cap: $31.77B
• Dividend Yield: 2.63%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.94
• Revenue Growth: -14.78%
• EPS Growth: 34.80%
• Country: US
• Employees: 15,412
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Life
• EPS (TTM): 1.60
• Shares Outstanding: 1,291,395,300
• 10 Day Avg. Volume: 1,027,845
• 30 Day Avg. Volume: 1,003,680
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $26.00
• Price Target Upside: 3.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $26.00 ▲(3.88%Upside)

Prudential's strong earnings call and technical momentum are key drivers of its overall score. The company's strategic initiatives and positive growth outlook significantly bolster investor confidence. Financial performance and valuation also contribute positively, despite some challenges in revenue consistency and market-specific issues.

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 plc generates revenue through a diversified model primarily centered on life insurance premiums, asset management fees, and investment income. The company earns a significant portion of its income from premiums collected through its life insurance policies, which provide coverage and financial security to policyholders. Additionally, Prudential's asset management division, which includes operations under brands such as Eastspring Investments, contributes to revenue by managing client assets and charging management fees based on the portfolio size and performance. Prudential also invests the premiums it collects, generating income through interest, dividends, and capital gains from its investment portfolio. The company's strategic partnerships and joint ventures in various regions enhance its market penetration and diversify its revenue streams by providing access to new markets and customer segments.

Prudential Financial Statement Overview

Summary

Prudential shows financial stability with a strong balance sheet and effective cash management. However, revenue volatility and inconsistent profitability present challenges. The 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: 25.03
• 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 PUK, the sentiment is Positive. The current price of 25.03 is above the 20-day moving average (MA) of 24.64, above the 50-day MA of 23.46, and above the 200-day MA of 18.99, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 61.14 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
MET	78 Outperform	$52.52B	12.76	16.08%	2.90%	8.77%	110.90%
PUK	77 Outperform	$31.77B	14.87	12.82%	2.63%	-14.78%	34.80%
UNM	72 Outperform	$13.82B	9.49	14.68%	2.12%	1.69%	25.54%
PRU	70 Neutral	$37.74B	16.96	8.04%	5.07%	2.47%	6.88%
Sector *	67 Neutral	$16.86B	11.90	9.77%	3.76%	12.07%	-8.35%
LNC	65 Neutral	$5.88B	4.87	16.91%	5.23%	8.31%	-2.30%
AFL	63 Neutral	$55.10B	15.97	14.41%	2.28%	-12.66%	-29.30%