Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 Fundamental Analysis
Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 Fundamental Analysis
Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 (PFH) shows moderate financial fundamentals with a PE ratio of 11.01, profit margin of 5.51%, and ROE of 10.91%. The company generates $63.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.3/100 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 PFH's fundamental strength across five key dimensions:
Efficiency Score
WeakPFH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPFH trades at attractive valuation levels.
Growth Score
ModeratePFH shows steady but slowing expansion.
Financial Health Score
ExcellentPFH maintains a strong and stable balance sheet.
Profitability Score
WeakPFH struggles to sustain strong margins.
Key Financial Metrics
Is PFH Expensive or Cheap?
P/E Ratio
PFH trades at 11.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PFH's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 at 1.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.46 times EBITDA. This is generally considered low.
How Well Does PFH Make Money?
Net Profit Margin
For every $100 in sales, Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 keeps $5.51 as profit after all expenses.
Operating Margin
Core operations generate 7.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.91 in profit for every $100 of shareholder equity.
ROA
Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 generates $0.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 produces operating cash flow of $9.79B, showing steady but balanced cash generation.
Free Cash Flow
Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060 generates strong free cash flow of $9.79B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $28.14 in free cash annually.
FCF Yield
PFH converts 26.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.009
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
28.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How PFH Stacks Against Its Sector Peers
| Metric | PFH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.01 | 20.79 | Better (Cheaper) |
| ROE | 10.91% | 622.00% | Weak |
| Net Margin | 5.51% | -1174.00% (disorted) | Weak |
| Debt/Equity | 0.62 | 1.51 | Strong (Low Leverage) |
| Current Ratio | 28.00 | 935.58 | Strong Liquidity |
| ROA | 0.45% | -788.00% (disorted) | Weak |
PFH outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Prudential Financial, Inc. 4.125% Junior Subordinated Notes due 2060's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical