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Prudential PLC (ADR) (PUK)
NYSE:PUK
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Prudential
(NYSE:PUK)
72Outperform
Prudential (PUK) vs. S&P 500 (SPY)
Market Cap
$24.89B
Dividend Yield2.13%
Average Volume (3M)1.20M
Price to Earnings (P/E)11.6
Beta (1Y)1.03
Revenue Growth-14.78%
EPS Growth34.80%
CountryUS
Employees15,412
SectorFinancial
Sector Strength87
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.60
Shares Outstanding1,305,018,600
10 Day Avg. Volume1,615,238
30 Day Avg. Volume1,201,798
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.64
Price to Cash Flow (P/CF)6.30
P/FCF Ratio6.20
Enterprise Value/Market Cap1.12
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.33
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Prudential Business Overview & Revenue Model
Company DescriptionPrudential 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 MoneyPrudential makes money through a diverse revenue model centered around premium income from its insurance products, investment returns from managing policyholder funds, and fees from its asset management services. The company's key revenue streams include premiums collected from life and health insurance policies, investment income generated from its substantial asset portfolio, and management fees charged to clients for investment services. Prudential's earnings are significantly influenced by its ability to attract and retain customers, effective risk management, and strategic partnerships with financial institutions and distribution networks. Additionally, geographic diversification into high-growth markets in Asia and Africa contributes to its revenue growth and stability.
Prudential Financial Statement Overview
Summary
Prudential's financial performance shows a positive recovery with improved revenue and profit margins. The income statement indicates a significant turnaround, while the balance sheet reflects strong equity and manageable leverage. Cash flow metrics suggest adequate liquidity but highlight inefficiencies in cash management. Overall, Prudential is stabilizing financially, though past volatility is a concern.Income Statement
Prudential's income statement shows a significant turnaround in revenue from a negative $27.6 billion in 2022 to $11.97 billion in 2023. The gross profit margin is 100% for 2023, indicating efficient cost management. Net income also improved to $1.7 billion from a loss of $1 billion in 2022, resulting in a positive net profit margin of 14.2%. However, the revenue volatility over the years suggests potential instability.65
Positive
Balance Sheet
The balance sheet reflects strong equity levels with a debt-to-equity ratio of 0.27, indicating manageable leverage. Stockholders' equity increased to $17.8 billion in 2023, providing a solid equity ratio of 10.24%. The return on equity in 2023 is 9.54%, showing effective use of equity. However, the decline in total assets from 2020 to 2023 indicates a reduction in scale.72
Positive
Cash Flow
Prudential's cash flow shows a recovery with a free cash flow of $788 million in 2023, up from $1.04 billion in 2022. The operating cash flow to net income ratio is 0.49, indicating less conversion of income into cash than optimal. The free cash flow to net income ratio is 0.46, suggesting room for improvement in cash generation relative to profits.68
Positive
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.97B | -27.59B | 26.50B | 36.25B | 70.76B | Gross Profit |
| 11.97B | -27.59B | 26.50B | 36.25B | 70.76B | EBIT |
| 2.55B | 0.00 | 0.00 | 0.00 | 66.97B | EBITDA |
| 3.06B | 0.00 | 0.00 | 3.44B | 0.00 | Net Income Common Stockholders |
| 1.70B | -1.01B | -2.04B | 2.12B | 591.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.59B | 1.81B | 7.17B | 44.05B | 1.88B | Total Assets |
| 174.07B | 160.25B | 188.23B | 516.10B | 342.88B | Total Debt |
| 4.87B | 5.08B | 8.24B | 9.08B | 5.35B | Net Debt |
| 3.28B | 3.27B | 1.07B | 1.06B | 3.47B | Total Liabilities |
| 156.08B | 143.35B | 169.12B | 493.98B | 328.03B | Stockholders Equity |
| 17.82B | 16.73B | 18.94B | 20.88B | 14.70B |
| Cash Flow | Free Cash Flow | |||
| 788.00M | 1.04B | 242.00M | 2.72B | -4.06B | Operating Cash Flow |
| 832.00M | 1.08B | 278.00M | 2.77B | -4.01B | Investing Cash Flow |
| -360.00M | -39.00M | -726.00M | -1.19B | -587.30M | Financing Cash Flow |
| -1.21B | -2.52B | 1.26B | -258.00M | -1.96B |
Prudential Technical Analysis
Positive
21.25
Price Trends
19.81
Positive
17.94
Positive
17.38
Positive
Market Momentum
0.49
Negative
57.32
Neutral
86.91
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 21.25 is above the 20-day moving average (MA) of 20.43, above the 50-day MA of 19.81, and above the 200-day MA of 17.38, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 86.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUK.
Prudential Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $59.32B | 11.28 | 22.64% | 1.92% | 1.21% | 24.08% | |
76 Outperform | $13.69B | 9.16 | 17.26% | 2.05% | 1.07% | 25.54% | |
72 Outperform | $24.89B | 11.61 | 12.82% | 2.13% | -14.78% | 34.80% | |
66 Neutral | $51.73B | 12.78 | 15.41% | 2.85% | 6.10% | 225.22% | |
65 Neutral | $5.44B | 1.73 | 43.24% | 5.52% | 47.95% | ― | |
63 Neutral | $12.46B | 9.55 | 8.14% | 17103.96% | 12.70% | -4.66% | |
61 Neutral | $36.40B | 13.69 | 9.79% | 5.05% | 34.25% | 11.22% |
* Financial Sector Average
Performance Comparison
PUK
Prudential
21.25
3.09
17.02%
AFL
AFLAC
108.68
26.35
32.01%
LNC
Lincoln National
31.87
6.43
25.28%
MET
Metlife
75.37
7.15
10.48%
PRU
Prudential Financial
102.71
-3.74
-3.51%
UNM
Unum Group
77.66
27.27
54.12%
Prudential Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: 7.81%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in new business growth, dividend increases, and strategic initiatives like the joint venture in India. However, challenges in certain markets and regulatory impacts in Hong Kong were noted. Overall, the sentiment is positive, given the strong growth metrics and strategic achievements.Q4-2024 Updates
Positive Updates
New Business Profit Growth
New business profit grew 11% in 2024, reaching $3.1 billion, in line with guidance.
Dividend Increase and Share Buyback
Dividends per share increased by 13% and a $2 billion share buyback program was launched.
Expansion in Agency Channel
4,000 more agents were activated in the second half of 2024, with a focus on quality recruitment and tech-enabled productivity.
Health Insurance Joint Venture in India
Announced a joint venture with the HCL Group to establish a health insurance business in India.
Strong Operating Profit Growth
Adjusted operating profit after tax increased by 8% per share.
Improved New Business Margins
New business profit margins improved due to repricing and a shift towards higher-margin products.
Negative Updates
Challenges in Africa and Start-up Markets
Expense overruns in Africa and other start-up markets contributed to negative operating variances.
Impact of Regulatory Changes in Hong Kong
New regulatory requirements in Hong Kong may affect business, including benefit illustration changes and potential commission caps for brokers.
Negative Operating Variances
Despite improvement, operating variances remain negative, primarily due to expense overruns.
Company Guidance
In the recent analyst and investor call, Prudential provided comprehensive guidance for 2025, emphasizing growth in several key metrics. The company expects new business profit, operating earnings per share, gross operating free surplus generation, and dividends per share to grow by over 10% this year. Notably, new business profit has already experienced a 21% compound annual growth rate since 2022 on a TEV basis. Additionally, the adjusted operating profit after tax grew by 8% per share, and dividends per share increased by 13% in 2024. Prudential is also progressing with its $2 billion share buyback program, which represents 8% of its outstanding stock, and plans to complete it by the end of 2025, ahead of schedule. The company remains focused on improving cash generation and maintaining disciplined capital allocation, with a commitment to delivering long-term value to shareholders.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.