Prudential (PUK) AI Stock Analysis

• Market Cap: $23.88B
• Dividend Yield: 2.26%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.28
• Revenue Growth: -10.56%
• EPS Growth: -53.77%
• Country: US
• Employees: 15,000
• Sector: Financial
• Sector Strength: 93
• Industry: Insurance
• EPS (TTM): 0.64
• Shares Outstanding: 1,316,073,000
• 10 Day Avg. Volume: 905,055
• 30 Day Avg. Volume: 1,025,650
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.24
• Price to Cash Flow (P/CF): 5.60
• P/FCF Ratio: 5.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Prudential scores a 60, reflecting a moderate outlook. The company's financial recovery is a strong factor, with improved revenue and profitability. However, technical indicators suggest a bearish trend, and the high P/E ratio points to potential overvaluation. Lack of significant earnings call information adds uncertainty. Despite these challenges, Prudential's stabilization efforts are noteworthy.

Prudential Business Overview & Revenue Model

Company Description

Prudential plc (PUK) is a leading international financial services group that provides a wide range of insurance and financial products and services. Operating primarily in Asia and Africa, Prudential focuses on life insurance, health insurance, and asset management. The company aims to offer financial security and investment opportunities, catering to individual and corporate clients with tailored solutions to meet their long-term financial needs.

How the Company Makes Money

Prudential makes money primarily through the sale of life and health insurance products and asset management services. The company's revenue streams include premiums collected from policyholders, fees from asset management, and investment income generated from managing policyholder funds. Prudential leverages its extensive network in Asia and Africa to access high-growth markets, providing customized insurance and investment products. Strategic partnerships with local financial institutions and distribution networks enhance Prudential's market penetration and customer reach, contributing significantly to its earnings. The company's focus on emerging markets allows it to capitalize on the growing demand for financial products, driven by rising income levels and increasing awareness of financial protection.

Prudential Financial Statement Overview

Summary

Prudential's financial performance shows a positive recovery with improved revenue and profit margins. The income statement indicates a significant turnaround, while the balance sheet reflects strong equity and manageable leverage. Cash flow metrics suggest adequate liquidity but highlight inefficiencies in cash management. Overall, Prudential is stabilizing financially, though past volatility is a concern.

Income Statement

Prudential's income statement shows a significant turnaround in revenue from a negative $27.6 billion in 2022 to $11.97 billion in 2023. The gross profit margin is 100% for 2023, indicating efficient cost management. Net income also improved to $1.7 billion from a loss of $1 billion in 2022, resulting in a positive net profit margin of 14.2%. However, the revenue volatility over the years suggests potential instability.

Balance Sheet

The balance sheet reflects strong equity levels with a debt-to-equity ratio of 0.27, indicating manageable leverage. Stockholders' equity increased to $17.8 billion in 2023, providing a solid equity ratio of 10.24%. The return on equity in 2023 is 9.54%, showing effective use of equity. However, the decline in total assets from 2020 to 2023 indicates a reduction in scale.

Cash Flow

Prudential's cash flow shows a recovery with a free cash flow of $788 million in 2023, up from $1.04 billion in 2022. The operating cash flow to net income ratio is 0.49, indicating less conversion of income into cash than optimal. The free cash flow to net income ratio is 0.46, suggesting room for improvement in cash generation relative to profits.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.62B	11.97B	-27.59B	26.50B	36.25B	70.76B
	Gross Profit
8.62B	11.97B	-27.59B	26.50B	36.25B	70.76B
	EBIT
8.62B	2.55B	0.00	0.00	0.00	66.97B
	EBITDA
3.31B	3.06B	0.00	0.00	3.44B	0.00
	Net Income Common Stockholders
688.74M	1.70B	-1.01B	-2.04B	2.12B	591.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	1.59B	1.81B	7.17B	44.05B	1.88B
	Total Assets
174.07B	174.07B	160.25B	188.23B	516.10B	342.88B
	Total Debt
4.87B	4.87B	5.08B	8.24B	9.08B	5.35B
	Net Debt
3.28B	3.28B	3.27B	1.07B	1.06B	3.47B
	Total Liabilities
156.08B	156.08B	143.35B	169.12B	493.98B	328.03B
	Stockholders Equity
17.82B	17.82B	16.73B	18.94B	20.88B	14.70B
Cash Flow		Free Cash Flow
1.34B	788.00M	1.04B	242.00M	2.72B	-4.06B
	Operating Cash Flow
1.38B	832.00M	1.08B	278.00M	2.77B	-4.01B
	Investing Cash Flow
-541.48M	-360.00M	-39.00M	-726.00M	-1.19B	-587.30M
	Financing Cash Flow
-711.35M	-1.21B	-2.52B	1.26B	-258.00M	-1.96B

Prudential Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUK, the sentiment is Positive. The current price of 18.53 is above the 20-day moving average (MA) of 17.80, above the 50-day MA of 16.62, and above the 200-day MA of 17.30, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUK.

Prudential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNM	75 Outperform	$13.77B	8.24	16.23%	2.00%	4.03%	45.42%
AIG	71 Outperform	$47.38B	15.77	-3.30%	1.89%	-28.56%	1.14%
LNC	67 Neutral	$6.11B	1.95	39.61%	4.75%	47.95%	―
MET	65 Neutral	$55.56B	13.72	16.13%	2.54%	6.10%	225.22%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%
PRU	61 Neutral	$38.79B	14.61	9.78%	4.63%	34.25%	11.22%
PUK	60 Neutral	$23.88B	29.17	9.54%	2.26%	-10.56%	-53.77%