Principal Financial Group, Inc. (PFG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ares Management Corp.

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T. Rowe Price Group, Inc.

KKR & Co., Inc.

Corebridge Financial, Inc.

Franklin Resources, Inc.

Principal Financial Group, Inc.

BlackRock, Inc.

Blackstone, Inc.

Northern Trust Corp.

Why is Principal Financial Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.41%

Poor long term growth as Operating profit has grown by an annual rate of 0%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 4,376.2 MM
RAW MATERIAL COST(Y) Fallen by 0% (YoY)
DIVIDEND PER SHARE(HY) Highest at USD 0

With ROE of 9.69%, it has a expensive valuation with a 3.04 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.70%, its profits have fallen by -16.1%

High Institutional Holdings at 77.28%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.76% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.70% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Principal Financial Group, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Principal Financial Group, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Principal Financial Group, Inc.

1.33%

0.24

28.38%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.32%

EBIT Growth (5y)

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

12.59%

Dividend Payout Ratio

42.69%

Pledged Shares

Institutional Holding

77.28%

ROCE (avg)

ROE (avg)

17.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.04

EV to EBIT

EV to EBITDA

402.15

EV to Capital Employed

3.27

EV to Sales

2.09

PEG Ratio

Dividend Yield

103.93%

ROCE (Latest)

ROE (Latest)

9.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,376.2 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 0

PRE-TAX PROFIT(Q)

At USD 503.1 MM has Grown at 55.83%

NET PROFIT(Q)

At USD 406.2 MM has Grown at 49.53%

-5What is not working for the Company

NET PROFIT(HY)

At USD 454.3 MM has Grown at -48.7%

DEBT-EQUITY RATIO (HY)

Highest at 2.52 %

Here's what is working for Principal Financial Group, Inc.

Operating Cash Flow

Highest at USD 4,376.2 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 503.1 MM has Grown at 55.83%

over average net sales of the previous four periods of USD 322.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 406.2 MM has Grown at 49.53%

over average net sales of the previous four periods of USD 271.65 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Dividend per share

Highest at USD 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Principal Financial Group, Inc.

Debt-Equity Ratio

Highest at 2.52 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio