Principal Financial Group Stock Fundamentals

PG4 Stock  EUR 82.00  2.00  2.50%   
Principal Financial Group fundamentals help investors to digest information that contributes to Principal Financial's financial success or failures. It also enables traders to predict the movement of Principal Stock. The fundamental analysis module provides a way to measure Principal Financial's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Principal Financial stock.
  
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Principal Financial Group Company Return On Equity Analysis

Principal Financial's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

 = 

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Principal Financial Return On Equity

    
  0.36  
Most of Principal Financial's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Principal Financial Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition

Based on the latest financial disclosure, Principal Financial Group has a Return On Equity of 0.3626. This is 74.99% lower than that of the Financial Services sector and significantly higher than that of the Insurance—Diversified industry. The return on equity for all Germany stocks is notably lower than that of the firm.

Principal Financial Fundamental Drivers 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 considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about  0.04  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Principal Financial Group is roughly  28.55 . 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 Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Principal Financial's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Principal Financial could also be used in its relative valuation, which is a method of valuing Principal Financial by comparing valuation metrics of similar companies.
Principal Financial is currently under evaluation in return on equity category among its peers.

Principal Fundamentals

About Principal Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Principal Financial Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Principal Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Principal Financial Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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 FINL operates under InsuranceDiversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 17400 people.

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Additional Information and Resources on Investing in Principal Stock

When determining whether Principal Financial is a strong investment it is important to analyze Principal Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Principal Financial's future performance. For an informed investment choice regarding Principal Stock, refer to the following important reports:
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 closely tied with the direction of predictive economic indicators such as signals in board of governors.
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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.