Principal Financial Financials
| PFG Stock | USD 78.96 0.48 0.61% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Profit Margin | 0.0778 | 0.0456 |
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| Return On Assets | 0.0019 | 0.002 |
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| Return On Equity | 0.096 | 0.0571 |
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| Debt Equity Ratio | 0.23 | 0.3657 |
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| Operating Income | 1.5 B | 767.9 M |
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| Current Ratio | 0.23 | 0.2389 |
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The financial analysis of Principal Financial is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Principal Financial includes many different criteria found on its balance sheet. For example, investors should never minimize Principal Financial's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Principal Financial's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Principal Financial.
Net Income |
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With this module, you can analyze Principal financials for your investing period. You should be able to track the changes in Principal Financial individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
Principal | Select Account or Indicator |
Understanding current and past Principal Financial Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Principal Financial's financial statements are interrelated, with each one affecting the others. For example, an increase in Principal Financial's assets may result in an increase in income on the income statement.
The data published in Principal Financial's official financial statements usually reflect Principal Financial's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Principal Financial. For example, before you start analyzing numbers published by Principal accountants, it's critical to develop an understanding of what Principal Financial's liquidity, profitability, and earnings quality are in the context of the Insurance space in which it operates.
Please note, the presentation of Principal Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Principal Financial's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Principal Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Principal Financial Group. Please utilize our Beneish M Score to check the likelihood of Principal Financial's management manipulating its earnings.
Principal Financial Stock Summary
Principal Financial competes with State Street, Bank of New York, SEI Investments, Affiliated Managers, and T Rowe. Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa. Principal Financial operates under Asset Management classification in the United States and is traded on NASDAQ Exchange. It employs 18600 people.Specialization | Financial Services, Asset Management |
| Instrument | USA Stock View All |
| Exchange | NASDAQ Exchange |
| ISIN | US74251V1026 |
| CUSIP | 74251V102 |
| Location | Iowa; U.S.A |
| Business Address | 711 High Street, |
| Sector | Insurance |
| Industry | Financials |
| Benchmark | NYSE Composite |
| Website | www.principal.com |
| Phone | 515 247 5111 |
| Currency | USD - US Dollar |
You should never invest in Principal Financial without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Principal Stock, because this is throwing your money away. Analyzing the key information contained in Principal Financial's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.
Principal Financial Key Financial Ratios
Generally speaking, Principal Financial's financial ratios allow both analysts and investors to convert raw data from Principal Financial's financial statements into concise, actionable information that can be used to evaluate the performance of Principal Financial over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Principal Financial reports annually and quarterly.| Return On Equity | 0.0624 | ||||
| Profit Margin | 0.05 % | ||||
| Operating Margin | (0.40) % |
Principal Financial Key Balance Sheet Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Total Assets | 291.1B | 313.5B | 321.2B | 303.0B | 305B | 207.9B | |
| Other Current Liab | (93.4M) | (84.7M) | (79.8M) | 19.2M | 11.9M | 11.3M | |
| Other Liab | 254.2B | 272.2B | 283.8B | 253.7B | 291.7B | 306.3B | |
| Net Debt | 1.3B | 1.5B | 2.0B | (770.3M) | (715.7M) | (679.9M) | |
| Retained Earnings | 11.1B | 11.8B | 12.9B | 17.0B | 16.7B | 17.5B | |
| Cash | 2.5B | 2.8B | 2.3B | 4.8B | 4.7B | 2.5B | |
| Other Assets | 139.6B | 144.5B | 153.7B | 288.0B | 292.3B | 167.1B | |
| Long Term Debt | 3.7B | 4.3B | 4.3B | 24.4B | 3.9B | 3.5B | |
| Good Will | 1.7B | 1.7B | 1.6B | 1.6B | 1.6B | 954.5M | |
| Total Liab | 276.1B | 296.6B | 304.7B | 292.7B | 293.8B | 197.2B | |
| Total Current Assets | 74.4B | 83.3B | 82.3B | 10.9B | 4.7B | 4.5B | |
| Intangible Assets | 1.8B | 1.7B | 1.6B | 1.5B | 1.5B | 1.2B | |
| Net Receivables | 1.7B | 1.7B | 1.8B | 26.3B | 24.6B | 25.8B | |
| Other Current Assets | 7.3B | 7.7B | 6.5B | 11.5B | 10.6B | 10.1B | |
| Treasury Stock | (7.4B) | (7.7B) | (8.0B) | (8.9B) | (8.0B) | (7.6B) | |
| Short Term Debt | 93.4M | 84.7M | 79.8M | 80.7M | 61.1M | 58.0M | |
| Accounts Payable | 16.2M | 22.3M | 15.5M | 20.4B | 19.6B | 20.6B | |
| Net Tangible Assets | 11.4B | 13.4B | 13.2B | 7.1B | 8.2B | 10.4B |
Principal Financial Key Cash Accounts
Cash flow analysis captures how much money flows into and out of Principal Financial. It measures of how well Principal is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Principal Financial brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Principal had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Principal Financial has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (461.6M) | 333.9M | (517.8M) | 2.5B | (140.3M) | (133.3M) | |
| Free Cash Flow | 5.4B | 3.6B | 3.1B | 3.1B | 3.7B | 3.4B | |
| Depreciation | 226.8M | 251.9M | 275.3M | 295.9M | 272.7M | 232.3M | |
| Other Non Cash Items | (433M) | (210.4M) | (605.9M) | (4.4B) | (623.2M) | (592.0M) | |
| Capital Expenditures | 132.4M | 108.8M | 129.9M | 116.3M | 102M | 96.9M | |
| Net Income | 1.4B | 1.4B | 1.8B | 4.9B | 623.2M | 592.0M | |
| End Period Cash Flow | 2.5B | 2.8B | 2.3B | 4.8B | 4.7B | 2.5B | |
| Change To Netincome | 4.0B | 2.3B | 1.5B | (1.7B) | (1.9B) | (1.8B) | |
| Dividends Paid | 606M | 614.5M | 654.1M | 642.3M | (625.5M) | (594.2M) | |
| Investments | 14.1B | 15.7B | (19.3B) | (20.7B) | (563.4M) | (535.2M) | |
| Net Borrowings | 26.9M | 30.9M | (31.5M) | (336.3M) | (302.7M) | (287.5M) |
Principal Financial Ratios Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Principal Financial's current stock value. Our valuation model uses many indicators to compare Principal Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Principal Financial competition to find correlations between indicators driving Principal Financial's intrinsic value. More Info.Principal Financial Group is rated below average in return on equity category among related companies. It is rated below average in return on asset category among related companies reporting about 0.03 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Principal Financial Group is roughly 39.00 . At this time, Principal Financial's Return On Equity is most likely to increase slightly in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Principal Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Principal Financial's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Principal Financial's earnings, one of the primary drivers of an investment's value.Principal Financial Systematic Risk
Principal Financial's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Principal Financial volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on Principal Financial correlated with the market. If Beta is less than 0 Principal Financial generally moves in the opposite direction as compared to the market. If Principal Financial Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Principal Financial is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Principal Financial is generally in the same direction as the market. If Beta > 1 Principal Financial moves generally in the same direction as, but more than the movement of the benchmark.
About Principal Financial Financials
What exactly are Principal Financial Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Principal Financial's income statement, its balance sheet, and the statement of cash flows. Potential Principal Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Principal Financial investors may use each financial statement separately, they are all related. The changes in Principal Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Principal Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.Steps to analyze Principal Financial Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Principal Financial is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Principal has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if Principal Financial's financials are consistent with your investment objective using the following steps:- Review Principal Financial's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
- Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
- Study the cash flow inflows and outflows to understand Principal Financial's liquidity and solvency.
- Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
- Compare Principal Financial's financials to those of its peers to see how it stacks up and identify any potential red flags.
- Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Principal Financial's stock is overvalued or undervalued.
Principal Financial Thematic Clasifications
Principal Financial Group is part of FinTech investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. A collection of large financial service, investment, and banking companies. High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking
This theme covers A collection of large financial service, investment, and banking companies. High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. Get More Thematic Ideas
| FinTech | View |
Today, most investors in Principal Financial Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Principal Financial's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Principal Financial growth as a starting point in their analysis.
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Principal Financial April 18, 2024 Opportunity Range
Along with financial statement analysis, the daily predictive indicators of Principal Financial help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Principal Financial Group. We use our internally-developed statistical techniques to arrive at the intrinsic value of Principal Financial Group based on widely used predictive technical indicators. In general, we focus on analyzing Principal Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Principal Financial's daily price indicators and compare them against related drivers.
| Downside Deviation | 1.01 | |||
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 5.0 | |||
| Value At Risk | (1.73) | |||
| Potential Upside | 1.42 |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Principal Financial Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the Principal Financial information on this page should be used as a complementary analysis to other Principal Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Principal Stock analysis
When running Principal Financial's price analysis, check to measure Principal Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Principal Financial is operating at the current time. Most of Principal Financial's value examination focuses on studying past and present price action to predict the probability of Principal Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Principal Financial's price. Additionally, you may evaluate how the addition of Principal Financial to your portfolios can decrease your overall portfolio volatility.
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Is Principal Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Principal Financial. If investors know Principal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Principal Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.02) | Dividend Share 2.6 | Earnings Share 2.55 | Revenue Per Share 56.634 | Quarterly Revenue Growth (0.15) |
The market value of Principal Financial is measured differently than its book value, which is the value of Principal that is recorded on the company's balance sheet. Investors also form their own opinion of Principal Financial's value that differs from its market value or its book value, called intrinsic value, which is Principal Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Principal Financial's market value can be influenced by many factors that don't directly affect Principal Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Principal Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Principal Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Principal Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.