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Prudential
(NYSE:PUK)
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Rating:72Outperform
Price Target:
$27.00
▼(-2.35% Downside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by improved financial performance (stronger profitability/ROE and manageable leverage) and a positive earnings call with reiterated guidance and robust capital generation/shareholder returns. Valuation is supportive due to a low P/E, while the overall score is capped by mixed technical signals and noted operating headwinds (notably China mix/regulatory pressure, market variance sensitivity, and agent count decline).
Positive Factors
Strong operating growth and margin expansion
Improved earnings, new business profit and margin show stronger execution across Prudential’s core insurance operations. Higher-margin health and protection mix, alongside pricing and productivity gains, can support more durable profit growth and better returns over the next several quarters.
Negative Factors
China product-mix and regulatory pressure
Regulatory changes and a sharp shift toward participating products are compressing China margins and limiting new business profit growth. Because China is a major operating market, persistent mix pressure could weigh on group profitability and make earnings improvement less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating growth and margin expansion
Improved earnings, new business profit and margin show stronger execution across Prudential’s core insurance operations. Higher-margin health and protection mix, alongside pricing and productivity gains, can support more durable profit growth and better returns over the next several quarters.
Read all positive factors
Prudential (PUK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.22B
Dividend Yield2.32%
Average Volume (3M)1.09M
Price to Earnings (P/E)8.4
Beta (1Y)0.80
Revenue Growth38.57%
EPS Growth10.07%
CountryUS
Employees15,338
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)2.86
Shares Outstanding1,238,993,400
10 Day Avg. Volume1,323,593
30 Day Avg. Volume1,086,411
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 Cap1.39
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda8.84
Forecast
1Y Price Target
$39.30Price Target Upside42.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.36
Revenue Forecast (FY)$8.89B
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 primarily makes money by underwriting and servicing long-duration insurance and savings products and by earning fees from managing assets for customers and affiliated insurance funds. Key revenue and earnings drivers include: (1) Insura...
Prudential Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 24, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial trajectory: multiple key metrics improved (NBP +8%, EPS +17%, free surplus +15%, asset management profits +20%), capital generation and shareholder returns are on track, and agency productivity and digital investments are delivering measurable gains. However, notable near-term headwinds remain—chiefly Mainland China product-mix and regulatory effects, market-related non-operating variances, Singapore margin pressure, and a reduced active agent count—that may temper momentum in the second half. Management reiterated unchanged guidance for 2026 and confidence in 2027 objectives while emphasizing ongoing transformation and disciplined capital allocation.Positive Updates
New Business Profit Growth
Group new business profit grew 8% in H1 2026, supported by strong performances in Hong Kong, ASEAN and improved product mix towards health and protection.
Negative Updates
China product-mix and regulatory headwinds
Mainland China faced regulatory changes and a pronounced shift to PAR products (PAR share rose to ~76% in H1 vs ~40% in prior year), compressing margins. Management expects full-year China NBP broadly similar to 2025 on a CER basis and guided a China full-year margin around 40% versus 43% in 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
New Business Profit Growth
Group new business profit grew 8% in H1 2026, supported by strong performances in Hong Kong, ASEAN and improved product mix towards health and protection.
Read all positive updates
Company Guidance
Prudential reiterated 2026 guidance for double‑digit growth across key financial metrics and remains on track for its 2027 objectives (including a $4.4bn OFSG target for 2027), after H1 2026 results showing new business profit +8%, EPS +17%, free surplus generation +15%, first interim DPS +15%, gross OFSG +15% y/y and net OFSG +41%; new business margin expanded 2ppt to 40% (model new business strain ~11–12% of APE), embedded value per share ex‑goodwill USD15.27/GBP11.50 and ROEV 15% with 2–3ppt upside potential, Hong Kong persistency 99%, and capability investment largely completing in 2026 with $300–350m remaining (part of a broader $1bn program) — management expects to return to positive variances north of $200m in 2027, to sustain a free surplus ratio of ~209% (200% excl. remaining AMC IPO proceeds, consistent with a 175–200% range) and to deliver >$7bn of shareholder returns 2024–2027 (including a $1.2bn buyback underway, ~GBP0.3bn additional buyback this year and an expected further $1.3bn in 2027).Prudential Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.20B | 27.78B | 8.14B | 11.97B | 8.75B | 26.50B |
| Gross Profit | 25.82B | 27.78B | 8.14B | 11.97B | 20.57B | 26.50B |
| EBITDA | 4.59B | 5.13B | 3.12B | 3.06B | -318.80M | 3.00B |
| Net Income | 3.63B | 3.98B | 2.29B | 1.70B | -1.01B | -2.04B |
Balance Sheet | ||||||
| Total Assets | 223.68B | 211.90B | 181.88B | 174.07B | 160.25B | 188.23B |
| Cash, Cash Equivalents and Short-Term Investments | 5.89B | 7.70B | 2.44B | 1.59B | 1.81B | 7.17B |
| Total Debt | 5.43B | 6.03B | 4.72B | 4.87B | 5.08B | 8.24B |
| Total Liabilities | 203.06B | 190.57B | 163.20B | 156.08B | 143.35B | 169.12B |
| Stockholders Equity | 19.80B | 20.09B | 17.49B | 17.82B | 16.73B | 17.05B |
Cash Flow | ||||||
| Free Cash Flow | 1.43B | 2.17B | 3.51B | 788.00M | 839.48M | 242.00M |
| Operating Cash Flow | 1.51B | 2.28B | 3.61B | 832.00M | 873.46M | 278.00M |
| Investing Cash Flow | 775.64M | 1.09B | -832.00M | -360.00M | -39.00M | -726.00M |
| Financing Cash Flow | -1.93B | -1.57B | -1.70B | -1.21B | -2.52B | 1.26B |
Prudential Technical Analysis
Negative
27.65
Price Trends
26.77
Negative
27.34
Negative
28.83
Negative
Market Momentum
-0.84
Positive
27.99
Positive
23.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUK, the sentiment is Negative. The current price of 27.65 is above the 20-day moving average (MA) of 25.24, above the 50-day MA of 26.77, and below the 200-day MA of 28.83, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 27.99 is Positive, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PUK.
Prudential Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $62.49B | 18.73 | 12.94% | 2.36% | 8.96% | -11.62% | |
72 Outperform | $29.22B | 8.37 | 18.25% | 2.32% | 38.57% | 10.07% | |
69 Neutral | $8.79B | 162.14 | 1.04% | 2.70% | 15.09% | ― | |
68 Neutral | $8.58B | 15.86 | 12.63% | 1.99% | 3.16% | 18.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $39.02B | 10.14 | 12.00% | 4.91% | 9.38% | 144.26% | |
64 Neutral | $7.70B | 3.35 | 21.99% | 4.47% | 12.32% | 97.86% |
* Financial Sector Average
PUK
Prudential
23.92
-2.68
-10.07%
LNC
Lincoln National
40.23
2.75
7.33%
MET
Metlife
98.33
19.75
25.14%
PRU
Prudential Financial
113.09
16.93
17.61%
VOYA
Voya Financial
94.67
22.74
31.60%
JXN
Jackson Financial Incorporation
129.71
37.21
40.22%
Prudential Corporate Events
Prudential plc Cancels Over 2.3 Million Shares in Early September Buy-Back
Sep 8, 2026
Prudential plc has stepped up its share buy-back activity, purchasing and cancelling a total of 2,367,089 ordinary shares on the London Stock Exchange between 1 and 4 September 2026 under shareholder authorities granted at its 2025 and 2026 annual...
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.