Now trading at a price of $26.35, Prudential Public has moved -1.5% so far today.
Prudential Public returned gains of 51.6% last year, with its stock price reaching a high of $27.2 and a low of $14.39. Over the same period, the stock outperformed the S&P 500 index by 37.2%. More recently, the company's 50-day average price was $25.32. Prudential plc, through its subsidiaries, provides life and health insurance, and asset management solutions to individuals in Asia and Africa. Based in Central, Hong Kong, the Large-Cap Finance company has 15,412 full time employees. Prudential Public has offered a 0.9% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $23,378 | $22,485 | $23,014 | $8,985 | $9,740 | $10,740 |
| Operating Margins | 10% | 12% | 14% | 30% | 30% | 28% |
| Net Margins | 3% | 10% | -12% | -11% | 18% | 22% |
| Net Income (M) | $792 | $2,185 | -$2,813 | -$997 | $1,712 | $2,415 |
| Diluted Shares (M) | 2,601 | 2,609 | 2,746 | 2,750 | 2,754 | 2,658 |
| Earnings Per Share | $0.3 | $0.82 | -$0.78 | -$0.37 | $0.62 | $0.84 |
| EPS Growth | n/a | 173.33333333333334% | -195.12195121951223% | 52.56410256410257% | 267.5675675675676% | 35.48387096774193% |
| Total Debt (M) | $161,446 | $152,665 | $110,423 | $86,295 | $89,677 | $80,353 |
| Net Debt / EBITDA | 53.36 | 41.54 | 25.41 | 25.12 | 24.85 | 20.42 |
a Very Low P/E Ratio but Its Shares Are Expensive:
Prudential Public has a trailing twelve month P/E ratio of 15.1, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $1.5, the company has a forward P/E ratio of 16.9. According to the 25.8% compound average growth rate of Prudential Public's historical and projected earnings per share, the company's PEG ratio is 0.58. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 15.6%. On this basis, the company's PEG ratio is 0.97. This suggests that its shares are undervalued. In contrast, Prudential Public is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.98 is higher than the sector average of 1.78. The company's shares are currently trading 128.7% below their Graham number.
Prudential Public Has No Average Rating:
Prudential Public has a very low short interest because 0.1% of the company's shares are sold short. Institutions own 2.3% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Goldman Sachs Group Inc, whose 0% stake in the company is worth $79,683,488.
