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Prudential PLC (ADR) (PUK)
NYSE:PUK
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Prudential
(NYSE:PUK)
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Rating:68Neutral
Price Target:
$28.00
â–²(2.49% 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.
Prudential (PUK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.49B
Dividend Yield1.76%
Average Volume (3M)904.05K
Price to Earnings (P/E)10.4
Beta (1Y)0.84
Revenue Growth42.45%
EPS Growth304.26%
CountryUS
Employees15,412
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.99
Shares Outstanding1,281,736,600
10 Day Avg. Volume858,323
30 Day Avg. Volume904,054
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 Cap1.16
Enterprise Value/Revenue2.22
Enterprise Value/Gross Profit7.43
Enterprise Value/Ebitda3.96
Forecast
1Y Price Target
$32.97Price Target Upside20.68% Upside
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 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 Key Performance Indicators (KPIs)
Any
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.
Shows profitability from core operations across different business segments, highlighting which areas are driving earnings and where there might be challenges.
Data provided by:
Main Street Data
Main Street DataPrudential 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 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.60
Neutral
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.70
Positive
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.65
Positive
| 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
Positive
27.32
Price Trends
27.14
Positive
25.88
Positive
22.54
Positive
Market Momentum
-0.04
Positive
50.78
Neutral
56.06
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 27.32 is below the 20-day moving average (MA) of 27.46, above the 50-day MA of 27.14, and above the 200-day MA of 22.54, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUK.
Prudential Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.89B | 9.06 | 13.95% | 2.26% | 1.69% | 22.65% | |
72 Outperform | $10.97B | 10.82 | 20.02% | 0.77% | 4.02% | 13.01% | |
71 Outperform | $52.55B | 13.39 | 15.61% | 2.83% | 6.17% | 59.22% | |
69 Neutral | $35.74B | 22.46 | 5.57% | 5.24% | -1.80% | -42.18% | |
68 Neutral | $34.49B | 10.44 | 20.19% | 1.76% | 42.45% | 304.26% | |
68 Neutral | $57.86B | 24.46 | 9.15% | 2.08% | -17.57% | -53.18% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
PUK
Prudential
27.32
10.71
64.48%
AFL
AFLAC
107.85
-1.95
-1.78%
MET
Metlife
78.56
-3.22
-3.94%
PRU
Prudential Financial
102.09
-17.24
-14.45%
GL
Globe Life
135.63
25.69
23.37%
UNM
Unum Group
76.21
14.24
22.98%
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.