Principal Financial Stock Intrinsic Value – Principal Financial Group Stock Takes a Hit on Friday
January 6, 2024
🌥️Trending News
On Friday, the stock of Principal Financial ($NASDAQ:PFG) Group Inc. (PFG) took a hit, failing to keep pace with the market. PFG, a global financial services company, has a wide range of services for individuals and businesses. Analysts attributed the drop in stock value to a variety of factors, including the Federal Reserve’s decision to raise interest rates. This caused investors to shift their investments into different stocks and away from Principal Financial Group Inc. Despite the recent decline in stock price, analysts remain optimistic about PFG’s long-term prospects. The company’s strong balance sheet should help it weather any short-term turbulence in the market.
In addition, the company is expected to benefit from tax reform and increased consumer spending due to the recently passed tax bill. Overall, while PFG’s stock declined on Friday, analysts are confident that it will recover in the long run given its strong fundamentals and long-term growth potential.
Market Price
The stock opened at $78.4 on Tuesday, and closed at $79.1, rising by 0.6% from its prior closing price of 78.7. This may come as a disappointment to investors, as the original expectation was that the stock would continue to rise in value. It appears that the stock’s momentum may have been derailed by market forces and other factors, resulting in the downturn. The stock is likely to continue experiencing volatility as traders and investors respond to the latest news and developments affecting the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Principal Financial. More…
| Total Revenues | Net Income | Net Margin |
| 14.08k | 1.53k | 10.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Principal Financial. More…
| Operations | Investing | Financing |
| 4.01k | -563.4 | -3.12k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Principal Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 287.95k | 276.97k | 44.76 |
Key Ratios Snapshot
Some of the financial key ratios for Principal Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.1% | – | 17.4% |
| FCF Margin | ROE | ROA |
| 27.7% | 11.5% | 0.5% |
Analysis – Principal Financial Stock Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of PRINCIPAL FINANCIAL‘s wellbeing. Our proprietary Valuation Line indicates that the fair value of PRINCIPAL FINANCIAL’s stock is around $74.6. However, the current trading price stands at $79.1, representing an overvaluation of 6.0%. We believe this to be a fair price considering the company’s current financial circumstances. More…
Peers
The competition between Principal Financial Group Inc and its competitors is fierce. American International Group Inc, Unum Group, and Mapfre SA are all major players in the insurance industry, and each company is striving to be the best. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company is the best fit for their needs.
– American International Group Inc ($NYSE:AIG)
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
As of December 31, 2020, AIG had $41.53 billion in market capitalization. The company’s return on equity was 22.87% for the year ended December 31, 2020.
AIG is a leading provider of property casualty insurance, life insurance, retirement products, and other financial services. The company operates in more than 80 countries and jurisdictions and serves customers in a variety of industries.
– Unum Group ($NYSE:UNM)
The company’s market cap is 8.96B as of 2022 and its ROE is 9.51%. The company provides insurance and financial services to customers in the United States, Europe, and Asia. It offers a variety of insurance products, including life insurance, disability income insurance, long-term care insurance, and annuities. The company also provides property and casualty insurance, such as auto insurance, homeowners insurance, and commercial insurance. In addition, it offers a range of investment products, including mutual funds, managed accounts, and retirement products.
– Mapfre SA ($OTCPK:MPFRY)
Mapfre SA is a Spain-based company engaged in the insurance sector. It provides a range of insurance products, including motor, home, health, life, and assistance insurance, among others. The Company operates through a network of offices and agencies located in Spain and abroad. Mapfre SA is a part of Mapfre Group.
Summary
Principal Financial Group Inc. (PFG) saw its stock price drop on Friday, underperforming the wider market. Analysts suggest several factors potentially at play, including a lack of confidence in the current economic outlook, declining investor sentiment, and a lack of clarity on the company’s future performance. Short-term investors have been wary of investing in PFG due to its relatively high volatility and relatively high risk compared to other stocks.
Long-term investors may also be discouraged by the company’s lack of clear strategic direction and high debt levels. Despite these headwinds, some analysts believe that PFG could be an attractive option for investors with a long-term view, citing its strong dividend yield and diversified businesses.
