Prudential (PUK) AI Stock Analysis

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Prudential

(NYSE:PUK)

Select Model

Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$32.00

▲(0.50% 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

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 (PUK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$39.55B

Dividend Yield1.49%

Average Volume (3M)598.94K

Price to Earnings (P/E)12.2

Beta (1Y)0.75

Revenue Growth42.45%

EPS Growth304.26%

CountryUS

Employees15,412

SectorFinancial

Sector Strength70

IndustryInsurance - Life

Share Statistics

EPS (TTM)0.99

Shares Outstanding1,273,454,000

10 Day Avg. Volume579,055

30 Day Avg. Volume598,940

Financial Highlights & Ratios

PEG Ratio-0.29

Price to Book (P/B)1.24

Price to Sales (P/S)2.66

P/FCF Ratio6.17

Enterprise Value/Market Cap0.82

Enterprise Value/Revenue1.79

Enterprise Value/Gross Profit6.00

Enterprise Value/Ebitda3.20

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusModerate Buy

Number of Analyst Covering1

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 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 Key Performance Indicators (KPIs)

Any

Adjusted Operating Income Before Tax by Segment

Adjusted Operating Income Before Tax by Segment
Shows profitability from core operations across different business segments, highlighting which areas are driving earnings and where there might be challenges.

Chart InsightsPrudential's latest quarter shows a significant resurgence in its core segments, with Premiums, Policy Charges & Fees, and Net Investment Income all posting substantial gains after a prolonged period of zero activity. This indicates a strategic pivot or recovery, potentially driven by market conditions or internal restructuring. However, PGIM and Retirement segments have seen declines, suggesting shifts in focus or market challenges. The absence of earnings call commentary leaves the reasons for these changes open to interpretation, but the overall momentum appears positive for Prudential's core operations.

Data provided by:

The Fly

Prudential Earnings Call Summary

Earnings Call Date:Aug 26, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Mar 18, 2026

Earnings Call Sentiment Positive

The earnings call reflects a strong positive performance across key financial metrics, strategic execution, and capital management, despite some challenges in specific markets like China and ASEAN. The company's confidence in its strategic progress and future objectives is evident.

Q2-2025 Updates

Positive Updates

Double-Digit Growth Across Key Metrics

New business profit and adjusted operating profit per share both grew 12%. Gross operating free surplus generation grew 14%, and dividends per share increased 13%, demonstrating strong financial performance and execution.

Strong Performance in Core Markets

Broad-based new business profit growth, including 16% growth in Hong Kong and 34% growth in Indonesia, showcasing the company's robust market presence and execution strategy.

Enhanced Capital Management Strategy

The company plans to return more than $5 billion to shareholders between 2024 and 2027, with a focus on sustainable cash returns and an enhanced capital allocation framework.

Improved Return on Embedded Value

Return on embedded value improved to 15%, indicating effective capital management and strategic progress.

Successful Agency Strategy

Agency productivity increased, with MDRT ranks growing by 3%, highlighting effective recruitment and development strategies.

Negative Updates

Challenges in Mainland China

Although agent numbers were up 45%, regulatory changes present challenges, and underperformance in certain areas persists.

Underperformance in ASEAN Markets

Agency performance in Malaysia and Vietnam is not meeting expectations due to industry-wide challenges.

Increased Required Capital

Required capital growth of 10% in the first half could put constraints on free surplus and affect financial flexibility.

Company Guidance

During the Prudential Half Year Results 2025 call, the company reported robust financial performance, achieving double-digit growth across key metrics. New business profit and adjusted operating profit per share increased by 12%, while gross operating free surplus generation grew by 14%, and dividends per share rose by 13%. The company announced an updated capital management program, planning to return over $5 billion to shareholders between 2024 and 2027. This includes completing an existing $2 billion share repurchase program by year-end, with additional buybacks of $500 million in 2026 and $600 million in 2027. The company aims to achieve these returns through strong operating free surplus generation, which increased by 20% net of strain. Prudential remains confident in its strategic transformation, focusing on accelerating value creation, with $400 million invested in initiatives to modernize technology and enhance customer engagement. The company reported 16% new business profit growth in Hong Kong and 34% in Indonesia, with a strong emphasis on agency and bancassurance distribution channels. Prudential targets a greater than 10% dividend per share growth from 2025 to 2027, reflecting confidence in its sustainable cash generation and strategic progress.

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 Price31.84

Price Trends

50DMA

29.61

Positive

100DMA

28.44

Positive

200DMA

25.85

Positive

Market Momentum

MACD

0.68

Positive

RSI

63.50

Neutral

STOCH

30.22

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 31.84 is above the 20-day moving average (MA) of 31.16, above the 50-day MA of 29.61, and above the 200-day MA of 25.85, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 30.22 is Neutral, 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 (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRU	77 Outperform	$41.33B	16.18	8.36%	4.73%	-19.35%	-35.23%
PUK	73 Outperform	$39.55B	12.17	20.19%	1.49%	42.45%	304.26%
MET	69 Neutral	$52.32B	14.95	12.84%	2.78%	0.82%	7.18%
AFL	68 Neutral	$57.25B	14.24	15.58%	2.10%	2.31%	15.46%
GL	68 Neutral	$11.30B	10.28	22.28%	0.74%	3.73%	17.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNM	64 Neutral	$13.44B	15.64	8.35%	2.22%	1.80%	-44.44%

* Financial Sector Average

Performance Comparison

PUK

Prudential

31.84

17.40

120.48%

AFL

AFLAC

108.88

7.46

7.36%

MET

Metlife

78.32

-3.15

-3.87%

PRU

Prudential Financial

117.74

5.94

5.31%

Globe Life

142.87

29.77

26.32%

UNM

Unum Group

80.06

8.72

12.22%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 11, 2025