Prudential plc
Prudential plc Fundamental Analysis
Prudential plc (PUKPF) shows moderate financial fundamentals with a PE ratio of 9.82, profit margin of 14.15%, and ROE of 21.26%. The company generates $28.3B in annual revenue with weak year-over-year growth of 1.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.9/100 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 PUKPF's fundamental strength across five key dimensions:
Efficiency Score
WeakPUKPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPUKPF trades at attractive valuation levels.
Growth Score
ModeratePUKPF shows steady but slowing expansion.
Financial Health Score
ModeratePUKPF shows balanced financial health with some risks.
Profitability Score
ModeratePUKPF maintains healthy but balanced margins.
Key Financial Metrics
Is PUKPF Expensive or Cheap?
P/E Ratio
PUKPF trades at 9.82 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PUKPF's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values Prudential plc at 1.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.45 times EBITDA. This is generally considered low.
How Well Does PUKPF Make Money?
Net Profit Margin
For every $100 in sales, Prudential plc keeps $14.15 as profit after all expenses.
Operating Margin
Core operations generate 40.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.26 in profit for every $100 of shareholder equity.
ROA
Prudential plc generates $1.92 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 $2.26B, signaling weaker underlying cash strength.
Free Cash Flow
Prudential plc produces free cash flow of $2.16B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.85 in free cash annually.
FCF Yield
PUKPF converts 5.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
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
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How PUKPF Stacks Against Its Sector Peers
| Metric | PUKPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.82 | 19.11 | Better (Cheaper) |
| ROE | 21.26% | 821.00% | Weak |
| Net Margin | 14.15% | 1655.00% | Weak |
| Debt/Equity | 0.30 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 659.22 | Weak Liquidity |
| ROA | 1.92% | 1976.00% | Weak |
PUKPF outperforms its industry in 2 out of 6 key metrics, 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
551.47%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
43.45%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-37.37%
Industry Style: Value, Dividend, Cyclical
Declining