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Prudential
(NYSE:PUK)
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Rating:73Outperform
Price Target:
$29.00
â–¼(-0.96% Downside)
Action:Upgraded
Date:06/05/26
The score is driven primarily by improved financial performance (stronger profitability/ROE and manageable leverage) and a constructive earnings outlook with clear double-digit growth guidance, capital strength, and sizable shareholder return plans. This is partly offset by weak technical signals (below major moving averages with negative MACD) and some lingering volatility risks in cash flow and operating variances.
Positive Factors
Capital generation & shareholder returns
A multi‑year, explicit capital return program (>$7bn through 2027, staged buybacks and DPS growth targets) indicates strong free surplus conversion and disciplined capital allocation. This supports durable shareholder returns and signals management confidence in recurring cash generation and capital resilience.
Negative Factors
Agency channel underperformance
A sustained decline in active agents (~11%) and weaker agency recruitment impairs a key distribution pillar for long‑term new business. Agency underperformance raises acquisition cost pressure, slows geographic expansion and makes sustaining historical organic growth rates harder without structural fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital generation & shareholder returns
A multi‑year, explicit capital return program (>$7bn through 2027, staged buybacks and DPS growth targets) indicates strong free surplus conversion and disciplined capital allocation. This supports durable shareholder returns and signals management confidence in recurring cash generation and capital resilience.
Read all positive factors
Prudential Key Performance Indicators (KPIs)
Any
Adjusted Operating Income Before Tax by Segment
Shows profitability from core operations across different business segments, highlighting which areas are driving earnings and where there might be challenges.
Shows profitability from core operations across different business segments, highlighting which areas are driving earnings and where there might be challenges.
Data provided by:
The Fly
The FlyPrudential (PUK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.25B
Dividend Yield1.49%
Average Volume (3M)1.32M
Price to Earnings (P/E)8.7
Beta (1Y)0.95
Revenue Growth66.84%
EPS Growth83.13%
CountryUS
Employees15,412
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.10
Shares Outstanding1,255,502,200
10 Day Avg. Volume1,896,563
30 Day Avg. Volume1,318,007
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)2.00
Price to Sales (P/S)1.45
P/FCF Ratio18.48
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit1.15
Enterprise Value/Ebitda2.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.49
Revenue Forecast (FY)$6.76B
Prudential Business Overview & Revenue Model
Company Description
Prudential plc, operating through its various subsidiaries, delivers a diverse array of financial solutions to individuals across Asia and Africa, encompassing life and health coverage, retirement planning, and comprehensive asset management servi...
How the Company Makes Money
Prudential makes money primarily by writing and servicing life and health insurance and savings-type policies and by earning fees and investment-related income associated with those products. Key revenue/earnings drivers include: (1) Premiums and ...
Prudential Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial set of results: clear double-digit growth (NBP +12%), margin expansion (NBP margin +2ppt to 42%), improved capital generation (gross OFSG +15%, net OFSG +22%), a stronger capital position and an AA rating, plus large planned shareholder returns. The principal areas of concern are agency channel underperformance, market-specific regulatory impacts (notably Hong Kong), near-term volatility in reported investment returns due to remittances/buybacks and required capital increases driven by market moves. Management provided clear action plans (PRUVentures, agency compensation redesign, tech/AI rollouts) and reiterated guidance to return operating variances to positive by 2027, so overall positives outweigh the negatives.Positive Updates
Double-digit growth across key financial metrics
New business profit (NBP) grew 12%; adjusted operating profit after tax per share grew 12%. Management reported double-digit NBP growth in every quarter of 2025 and guided to double-digit growth across key KPIs for 2026.
Negative Updates
Agency channel underperformance and active agent decline
Agency growth lagged bancassurance in 2025 (analyst commentary suggested agency APE growth was low, management confirmed agency underperformed). Active agents were reported to have declined around 11% overall, driven by weak new recruitment in emerging ASEAN markets (Vietnam, Philippines, Malaysia, Indonesia).
Read all updates
Q4-2025 Updates
Positive
Negative
Double-digit growth across key financial metrics
New business profit (NBP) grew 12%; adjusted operating profit after tax per share grew 12%. Management reported double-digit NBP growth in every quarter of 2025 and guided to double-digit growth across key KPIs for 2026.
Read all positive updates
Company Guidance
Management guided to double‑digit growth across key financial KPIs for 2026 and reaffirmed confidence in hitting the 2027 objectives, pointing to strong 2025 momentum: new business profit +12% (18% CAGR 2022–25 and double‑digit NBP growth in every 2025 quarter), adjusted operating profit after tax per share +12%, gross OFSG +15% (net OFSG +22%), NBP margin +2pp to 42%, addition to 2027 capital emergence +16% and RoEV of 15%; dividend per share rose 15% and management targets >10% DPS growth p.a. from 2025–27. On capital returns and balance sheet guidance they expect to return over $7bn to shareholders between 2024–27 (including returning $1.4bn IPO proceeds split half/half), with a $500m additional return this year, $600m in 2027, a $1.2bn buyback to complete by end‑2026 and a further $1.3bn in 2027; free surplus ended 2025 at 221% (204% excl. IPO) versus a 175–200% operating range and S&P upgraded the group to AA. They plan to largely complete capability investment in 2026 ($300–350m), expect the group CSM release to be marginally lower (high‑9% range, ~9.4%), foresee required capital growing low‑double digits (~12–13%), and expect to return to positive operating variances by 2027 (north of $200m).Prudential Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.78B | 8.14B | 11.97B | -27.59B | 26.50B |
| Gross Profit | 27.78B | 8.14B | 11.97B | -27.59B | 26.50B |
| EBITDA | 5.13B | 3.12B | 3.06B | -233.86M | 3.00B |
| Net Income | 3.98B | 2.29B | 1.70B | -1.01B | -2.04B |
Balance Sheet | |||||
| Total Assets | 211.90B | 181.88B | 174.07B | 160.25B | 188.23B |
| Cash, Cash Equivalents and Short-Term Investments | 7.70B | 2.44B | 1.59B | 1.81B | 7.17B |
| Total Debt | 6.03B | 4.72B | 4.87B | 5.08B | 8.24B |
| Total Liabilities | 190.57B | 163.20B | 156.08B | 143.35B | 169.12B |
| Stockholders Equity | 20.09B | 17.49B | 17.82B | 16.73B | 18.94B |
Cash Flow | |||||
| Free Cash Flow | 2.17B | 3.51B | 788.00M | 839.48M | 242.00M |
| Operating Cash Flow | 2.28B | 3.61B | 832.00M | 873.46M | 278.00M |
| Investing Cash Flow | 1.09B | -832.00M | -360.00M | -39.00M | -726.00M |
| Financing Cash Flow | -1.57B | -1.70B | -1.21B | -2.52B | 1.26B |
Prudential Technical Analysis
Neutral
29.28
Price Trends
28.86
Negative
29.26
Negative
29.18
Negative
Market Momentum
-0.43
Negative
50.90
Neutral
78.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUK, the sentiment is Neutral. The current price of 29.28 is above the 20-day moving average (MA) of 26.48, above the 50-day MA of 28.86, and above the 200-day MA of 29.18, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 78.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PUK.
Prudential Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $14.01B | 12.28 | 20.32% | 0.74% | 3.96% | 18.81% | |
74 Outperform | $57.95B | 17.35 | 12.88% | 2.78% | 5.57% | -16.00% | |
73 Outperform | $34.25B | 8.72 | 36.71% | 1.49% | 66.84% | 83.13% | |
73 Outperform | $14.75B | 20.03 | 7.07% | 2.22% | 4.19% | -45.74% | |
68 Neutral | $61.53B | 13.74 | 16.08% | 2.10% | 7.25% | 37.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $39.19B | 11.49 | 10.91% | 4.73% | 4.08% | 54.01% |
* Financial Sector Average
PUK
Prudential
27.56
3.72
15.61%
AFL
AFLAC
120.88
20.15
20.00%
MET
Metlife
90.06
13.19
17.15%
PRU
Prudential Financial
112.95
10.61
10.36%
GL
Globe Life
180.49
60.04
49.84%
UNM
Unum Group
92.34
12.53
15.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.