Analysis of Principal Financial Group Inc. (NASDAQ:PFG): Selected Notes

The closing price of Principal Financial Group Inc. (NASDAQ: PFG) was 76.06 for the day, down -1.02% from the previous closing price of $76.84. In other words, the price has decreased by $-0.78 from its previous closing price. On the day, 1612360 shares were traded. PFG reached its highest trading level at $78.13 during the session, while it also had its lowest trading level at $76.06.

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Ratios:

Our analysis of PFG’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 6.01 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 8.98. In the meantime, Its Debt-to-Equity ratio is 0.39 whereas as Long-Term Debt/Eq ratio is at 0.39.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Credit Suisse on August 18, 2022, Downgraded its rating to Neutral and sets its target price to $86 from $82 previously.

On May 24, 2022, Citigroup started tracking the stock assigning a Sell rating and target price of $63.

On January 26, 2022, Jefferies started tracking the stock assigning a Underperform rating and target price of $62.Jefferies initiated its Underperform rating on January 26, 2022, with a $62 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Sep 13 when Cheong Wee Yee sold 2,447 shares for $78.45 per share. The transaction valued at 191,967 led to the insider holds 34,700 shares of the business.

Walker Roberto sold 9,000 shares of PFG for $692,550 on Aug 22. The EVP, Principal Latin American now owns 34,008 shares after completing the transaction at $76.95 per share. On Aug 19, another insider, Walker Roberto, who serves as the EVP, Principal Latin American of the company, sold 12,975 shares for $78.04 each. As a result, the insider received 1,012,569 and left with 43,008 shares of the company.

Valuation Measures:

As of this moment, Principal’s Price-to-Earnings (P/E) ratio for their current fiscal year is 4.63, and their Forward P/E ratio for the next fiscal year is 10.48. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.73. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.34 while its Price-to-Book (P/B) ratio in mrq is 1.74.

Stock Price History:

Over the past 52 weeks, PFG has reached a high of $80.36, while it has fallen to a 52-week low of $61.04. The 50-Day Moving Average of the stock is 72.26, while the 200-Day Moving Average is calculated to be 71.45.

Shares Statistics:

PFG traded an average of 1.58M shares per day over the past three months and 2.25M shares per day over the past ten days. A total of 252.60M shares are outstanding, with a floating share count of 246.15M. Insiders hold about 0.40% of the company’s shares, while institutions hold 77.30% stake in the company. Shares short for PFG as of Jul 14, 2022 were 10.01M with a Short Ratio of 6.73, compared to 9.89M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.96% and a Short% of Float of 4.48%.

Dividends & Splits

With its trailing 12-month dividend rate of 2.24, PFG has a forward annual dividend rate of 2.56. Against a Trailing Annual Dividend Yield of 2.92%, it implies a Forward Annual Dividend Yield of 3.82%. The stock’s 5-year Average Dividend Yield is 3.96.

Earnings Estimates

The firm’s stock currently is rated by 14 analysts. On average, analysts expect EPS of $1.41 for the current quarter, with a high estimate of $1.6 and a low estimate of $1.11, while EPS last year was $1.7. The consensus estimate for the next quarter is $1.52, with high estimates of $1.72 and low estimates of $1.26.

Analysts are recommending an EPS of between $6.7 and $5.7 for the fiscal current year, implying an average EPS of $6.16. EPS for the following year is $7.16, with 14 analysts recommending between $7.85 and $6.74.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 5 analysts. It ranges from a high estimate of $3.52B to a low estimate of $3.2B. As of the current estimate, Principal Financial Group Inc.’s year-ago sales were $3.54B, an estimated decrease of -5.60% from the year-ago figure. For the next quarter, 5 analysts are estimating revenue of $3.19B, a decrease of -6.80% less than the figure of $-5.60% in the same quarter last year. There is a high estimate of $3.27B for the next quarter, whereas the lowest estimate is $3.02B.

A total of 7 analysts have provided revenue estimates for PFG’s current fiscal year. The highest revenue estimate was $13.42B, while the lowest revenue estimate was $11.47B, resulting in an average revenue estimate of $12.8B. In the same quarter a year ago, actual revenue was $14.46B, down -11.50% from the average estimate. Based on 7 analysts’ estimates, the company’s revenue will be $13.62B in the next fiscal year. The high estimate is $17.5B and the low estimate is $11.28B. The average revenue growth estimate for next year is up 6.40% from the average revenue estimate for this year.