Prudential (PUK) AI Stock Analysis

• Market Cap: $36.01B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.76
• Revenue Growth: 42.45%
• EPS Growth: 304.26%
• Country: US
• Employees: 15,412
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.99
• Shares Outstanding: 1,279,737,700
• 10 Day Avg. Volume: 955,490
• 30 Day Avg. Volume: 1,035,661
• PEG Ratio: -0.29
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 6.17
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 3.96
• 1Y Price Target: $32.97
• Price Target Upside: 14.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $32.00 ▲(10.84% 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.

Prudential Business Overview & Revenue Model

Company Description

Prudential (PUK) is a leading international financial services group headquartered in the United Kingdom, focusing on life insurance, asset management, and other financial products. The company operates primarily in the Asia, UK, and US markets, providing a diverse range of services including individual and group life insurance, retirement solutions, and investment management. Prudential aims to help its customers achieve financial security and wellness through innovative products and comprehensive financial planning services.

How the Company Makes Money

Prudential 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 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 Price: 28.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 28.87 is above the 20-day moving average (MA) of 27.84, above the 50-day MA of 27.62, and above the 200-day MA of 23.45, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 93.21 is Negative, 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
PUK	73 Outperform	$36.01B	11.10	20.19%	1.66%	42.45%	304.26%
MET	72 Outperform	$50.85B	14.53	12.84%	2.89%	0.82%	7.18%
UNM	71 Outperform	$12.94B	15.06	8.35%	2.31%	1.80%	-44.44%
PRU	71 Outperform	$37.45B	14.67	8.36%	5.09%	-19.35%	-35.23%
GL	71 Outperform	$10.57B	9.62	22.28%	0.79%	3.73%	17.47%
AFL	70 Outperform	$59.53B	14.81	15.58%	2.06%	2.31%	15.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Prudential Corporate Events

Prudential PLC Reports Robust Earnings Call

The recent earnings call for Prudential PLC was marked by a strong positive sentiment, reflecting robust performance across key financial metrics, strategic execution, and effective capital management. Despite facing challenges in specific markets such as China and ASEAN, the company expressed confidence in its strategic progress and future objectives.

Prudential PLC Reports Strong Half-Year Growth

Prudential PLC is a multinational life and health insurance and asset management company, primarily operating in Greater China, ASEAN, India, and Africa, with dual primary listings on the Hong Kong and London Stock Exchanges. The company recently announced its half-year results for 2025, highlighting significant growth across key financial metrics. New business profit increased by 12% to $1,260 million, while operating free surplus from in-force insurance and asset management rose by 14% to $1,560 million. The adjusted operating profit before tax saw a 6% increase, reaching $1,644 million. Prudential also reported a 13% increase in its first interim dividend per share, reflecting its commitment to returning capital to shareholders. The company is on track to achieve its 2027 objectives, with plans to continue enhancing customer experiences and expanding its distribution network. Despite market volatility, Prudential remains confident in its ability to deliver sustainable growth and increased shareholder returns.