Prudential plc (PRU) is a leading insurance-life business based in the UK. Prudential is listed on the London Stock Exchange (LSE) and employs 18,125 staff. All prices are listed in pence sterling.
|52-week range||666.7071p - 1473.4345p|
|50-day moving average||1366.0294p|
|200-day moving average||1218.9585p|
|Wall St. target price||2079.18p|
|Dividend yield||0.25p (1.79%)|
|Earnings per share (TTM)||5.4p|
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing Prudential stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Prudential's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Prudential's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 258x. In other words, Prudential shares trade at around 258x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Prudential's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.8557. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Prudential's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Prudential's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £2 billion.
The EBITDA is a measure of a Prudential's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||£35.1 billion|
|Operating margin TTM||4.91%|
|Gross profit TTM||£7.8 billion|
|Return on assets TTM||0.18%|
|Return on equity TTM||5.99%|
|Market capitalisation||£36.4 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Prudential.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 24.4
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Prudential's overall score of 24.4 (as at 01/01/2019) is pretty good – landing it in it in the 31st percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Prudential is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 5.61/100
Prudential's environmental score of 5.61 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Prudential is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 10.48/100
Prudential's social score of 10.48 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Prudential is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 13.31/100
Prudential's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Prudential is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Prudential scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Prudential has, for the most part, managed to keep its nose clean.
|Total ESG score||24.4|
|Total ESG percentile||30.8|
|Environmental score percentile||4|
|Social score percentile||4|
|Governance score percentile||4|
|Level of controversy||2|
Dividend payout ratio: 3334.67% of net profits
Recently Prudential has paid out, on average, around 3334.67% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.79% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Prudential shareholders could enjoy a 1.79% return on their shares, in the form of dividend payments. In Prudential's case, that would currently equate to about 0.25p per share.
Prudential's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 20 August 2020 (the "ex-dividend date").
Prudential's shares were split on a 5:1 basis on 26 May 1988. So if you had owned 1 share the day before before the split, the next day you'd have owned 5 shares. This wouldn't directly have changed the overall worth of your Prudential shares – just the quantity. However, indirectly, the new 80% lower share price could have impacted the market appetite for Prudential shares which in turn could have impacted Prudential's share price.
Over the last 12 months, Prudential's shares have ranged in value from as little as 666.7071p up to 1473.4345p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Prudential's is 1.3698. This would suggest that Prudential's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Prudential plc, through its subsidiaries, provides a range of long-term savings and protection products in Asia, the United States, and Africa. The company offers health and protection, as well as savings products, such as participating, linked, and other traditional products; and life insurance. It also provides variable, fixed, and fixed index annuities; and guaranteed investment contracts and funding agreements. In addition, the company offers retirement and asset management solutions; insurance against risks of illness, death, or critical life events; and investment funds. It serves young and middle-aged people or people in the retirement phase of life. Prudential plc provides its products and services through a network of independent agents, banks, independent broker-dealers, regional broker-dealers, and wirehouses. The company was founded in 1848 and is headquartered in London, the United Kingdom.
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