Principal Financial Revenue vs. Profit Margin
| PFG Stock | USD 82.16 0.65 0.80% |
Total Revenue | First Reported 2000-03-31 | Previous Quarter 4.6 B | Current Value 2.7 B | Quarterly Volatility 828.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 1.13 | 1.14 |
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| Net Profit Margin | 0.0778 | 0.0456 |
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| Operating Profit Margin | 0.088 | 0.0562 |
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| Pretax Profit Margin | 0.096 | 0.0541 |
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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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For Principal Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Principal Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Principal Financial Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Principal Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Principal Financial Group over time as well as its relative position and ranking within its peers.
Principal |
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.
Principal Financial Profit Margin vs. Revenue Fundamental Analysis
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. Principal Financial Group is regarded third in revenue category among related companies. It is rated below average in profit margin category among related companies . The ratio of Revenue to Profit Margin for Principal Financial Group is about 299,688,596,491 . At this time, Principal Financial's Total Revenue is most likely to increase significantly 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 Revenue vs. Competition
Principal Financial Group is regarded third in revenue category among related companies. Market size based on revenue of Financials industry is at this time estimated at about 113.12 Billion. Principal Financial retains roughly 13.67 Billion in revenue claiming about 12% of equities under Financials industry.
Principal Profit Margin vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Principal Financial |
| = | 13.67 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Principal Financial |
| = | 0.05 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Principal Profit Margin Comparison
Principal Financial is currently under evaluation in profit margin category among related companies.
Principal Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Principal Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Principal Financial will eventually generate negative long term returns. The profitability progress is the general direction of Principal Financial's change in net profit over the period of time. It can combine multiple indicators of Principal Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 14.6 B | 15.3 B | |
| Operating Income | 767.9 M | 1.5 B | |
| Income Before Tax | 738.8 M | 701.9 M | |
| Total Other Income Expense Net | -29.1 M | -27.6 M | |
| Net Income Applicable To Common Shares | 5.5 B | 5.8 B | |
| Net Income | 623.2 M | 592 M | |
| Income Tax Expense | 68.7 M | 65.3 M | |
| Net Income From Continuing Ops | 670.1 M | 636.6 M | |
| Non Operating Income Net Other | 348 M | 365.4 M | |
| Interest Income | 900 K | 800 K | |
| Change To Netincome | -1.9 B | -1.8 B | |
| Net Income Per Share | 2.58 | 3.26 | |
| Income Quality | 6.09 | 4.55 | |
| Net Income Per E B T | 0.84 | 0.63 |
Principal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Principal Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Principal Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Principal Financial's important profitability drivers and their relationship over time.
Use Principal Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Principal Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Principal Financial will appreciate offsetting losses from the drop in the long position's value.Principal Financial Pair Trading
Principal Financial Group Pair Trading Analysis
The ability to find closely correlated positions to Principal Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Principal Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Principal Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Principal Financial Group to buy it.
The correlation of Principal Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Principal Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Principal Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Principal Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Principal Financial position
In addition to having Principal Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Recreation Thematic Idea Now
Recreation
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Recreation theme has 34 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recreation Theme or any other thematic opportunities.
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Check out Your Equity Center. 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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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To fully project Principal Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Principal Financial at a specified time, usually calculated after every quarter, six months, or one year. 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.