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Prudential PLC (ADR) (PUK)
NYSE:PUK
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Prudential
(NYSE:PUK)
Rating:77Outperform
Price Target:
$26.00
â–²(3.92%Upside)
Prudential (PUK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.81B
Dividend Yield1.85%
Average Volume (3M)939.93K
Price to Earnings (P/E)14.9
Beta (1Y)0.92
Revenue Growth-14.78%
EPS Growth34.80%
CountryUS
Employees15,412
SectorFinancial
Sector Strength73
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.60
Shares Outstanding1,289,015,700
10 Day Avg. Volume855,137
30 Day Avg. Volume939,933
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside3.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 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 Key Performance Indicators (KPIs)
Prudential Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: 26.94%|
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.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.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 | 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
Positive
25.02
Price Trends
24.31
Positive
22.64
Positive
19.56
Positive
Market Momentum
0.23
Positive
53.07
Neutral
56.04
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 25.02 is above the 20-day moving average (MA) of 24.94, above the 50-day MA of 24.31, and above the 200-day MA of 19.56, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.04 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $50.99B | 12.36 | 16.08% | 2.98% | 8.77% | 110.90% | |
77 Outperform | $31.81B | 14.86 | 12.82% | 1.85% | -14.78% | 34.80% | |
71 Outperform | $6.99B | 6.43 | 12.97% | 4.88% | 11.33% | -38.17% | |
69 Neutral | $11.88B | 8.34 | 13.95% | 2.47% | 1.69% | 22.65% | |
68 Neutral | $36.67B | 22.94 | 5.57% | 5.26% | -1.80% | -42.18% | |
67 Neutral | $16.60B | 11.20 | 9.14% | 3.93% | 10.99% | -3.70% | |
66 Neutral | $53.72B | 15.51 | 14.41% | 2.20% | -12.66% | -29.30% |
* Financial Sector Average
Performance Comparison
PUK
Prudential
25.02
9.05
56.67%
AFL
AFLAC
98.09
2.88
3.02%
LNC
Lincoln National
36.87
9.31
33.78%
MET
Metlife
74.01
7.98
12.09%
PRU
Prudential Financial
100.71
-0.05
-0.05%
UNM
Unum Group
69.73
18.14
35.16%
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.