Prudential plc Fundamental Analysis (HKSE: 2378.HK)
Prudential plc (HKSE: 2378.HK) shows strong financial fundamentals with a PE ratio of 8.42, profit margin of 12.17%, and ROE of 18.28%. The company generates $2.8B in annual revenue with strong year-over-year growth of 73.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 2378.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2378.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2378.HK shows balanced valuation metrics.
Growth Score
Excellent2378.HK delivers strong and consistent growth momentum.
Financial Health Score
Moderate2378.HK shows balanced financial health with some risks.
Profitability Score
Moderate2378.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 2378.HK Expensive or Cheap?
P/E Ratio
2378.HK trades at 8.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2378.HK's PEG of 9.76 indicates potential overvaluation.
Price to Book
The market values Prudential plc at 15.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.13 times EBITDA. This is generally considered low.
How Well Does 2378.HK Make Money?
Net Profit Margin
For every $100 in sales, Prudential plc keeps $12.17 as profit after all expenses.
Operating Margin
Core operations generate 15.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.28 in profit for every $100 of shareholder equity.
ROA
Prudential plc generates $1.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Prudential plc generates limited operating cash flow of $141.79M, signaling weaker underlying cash strength.
Free Cash Flow
Prudential plc produces free cash flow of $134.70M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
2378.HK converts 4.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 2378.HK Stacks Against Its Sector Peers
| Metric | 2378.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.42 | 20.40 | Better (Cheaper) |
| ROE | 18.28% | 638.00% | Weak |
| Net Margin | 12.17% | -568.00% (disorted) | Strong |
| Debt/Equity | 0.30 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 818.60 | Weak Liquidity |
| ROA | 1.63% | 60.00% | Weak |
2378.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Prudential plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-25.81%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
81.97%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-15.72%
Industry Style: Value, Dividend, Cyclical
Declining