Is Principal Financial Stock a Good Investment?
Principal Financial Investment Advice | PFG |
- Examine Principal Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Principal Financial's leadership team and their track record. Good management can help Principal Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Life & Health Insurance space and any emerging trends that could impact Principal Financial's business and its evolving consumer preferences.
- Compare Principal Financial's performance and market position to its competitors. Analyze how Principal Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Principal Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Principal Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Principal Financial Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Principal Financial Group is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Principal Financial Stock
Researching Principal Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 73.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.71. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Principal Financial has Price/Earnings To Growth (PEG) ratio of 1.5. The entity recorded a loss per share of 0.74. The firm last dividend was issued on the 2nd of December 2024.
To determine if Principal Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Principal Financial's research are outlined below:
| About 73.0% of the company shares are owned by institutional investors | |
| On 27th of September 2024 Principal Financial paid $ 0.72 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Upstart Trading Up 7.9 percent Heres Why |
Principal Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Principal Financial Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Principal Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 12th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 12th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Principal Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Principal Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-11-06 | 2002-09-30 | 0.52 | 0.58 | 0.06 | 11 | ||
2010-08-02 | 2010-06-30 | 0.66 | 0.59 | -0.07 | 10 | ||
2013-01-31 | 2012-12-31 | 0.74 | 0.82 | 0.08 | 10 | ||
2003-05-05 | 2003-03-31 | 0.55 | 0.63 | 0.08 | 14 | ||
2013-07-25 | 2013-06-30 | 0.82 | 0.91 | 0.09 | 10 | ||
2009-11-02 | 2009-09-30 | 0.65 | 0.74 | 0.09 | 13 | ||
2006-05-01 | 2006-03-31 | 0.76 | 0.85 | 0.09 | 11 | ||
2004-11-01 | 2004-09-30 | 0.57 | 0.66 | 0.09 | 15 |
Know Principal Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Principal Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Principal Financial Group backward and forwards among themselves. Principal Financial's institutional investor refers to the entity that pools money to purchase Principal Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-06-30 | 3.3 M | Amvescap Plc. | 2024-06-30 | 2.6 M | Jpmorgan Chase & Co | 2024-06-30 | 2.3 M | Legal & General Group Plc | 2024-06-30 | 2.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.9 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 1.7 M | Goldman Sachs Group Inc | 2024-06-30 | 1.5 M | Hsbc Holdings Plc | 2024-06-30 | 1.4 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.4 M | Vanguard Group Inc | 2024-09-30 | 27.5 M | Blackrock Inc | 2024-06-30 | 19.8 M |
Principal Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 19.25 B.Market Cap |
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Principal Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.06 | 0.10 |
Determining Principal Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Principal Financial is a good buy. For example, gross profit margin measures Principal Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Principal Financial's profitability and make more informed investment decisions.
Principal Financial's Earnings Breakdown by Geography
Evaluate Principal Financial's management efficiency
The Principal Financial's current Return On Equity is estimated to increase to 0.1, while Return On Tangible Assets are projected to decrease to 0. At this time, Principal Financial's Fixed Asset Turnover is most likely to slightly decrease in the upcoming years. The Principal Financial's current Asset Turnover is estimated to increase to 0.07, while Other Assets are projected to decrease to roughly 167.2 B. Principal Financial's management efficiency ratios could be used to measure how well Principal Financial manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 47.41 | 26.81 | |
| Tangible Book Value Per Share | 34.40 | 21.75 | |
| Enterprise Value Over EBITDA | 17.65 | 16.05 | |
| Price Book Value Ratio | 1.70 | 1.62 | |
| Enterprise Value Multiple | 17.65 | 16.05 | |
| Price Fair Value | 1.70 | 1.62 | |
| Enterprise Value | 16.1 B | 10.8 B |
The strategic decisions made by Principal Financial management significantly impact its financial stability and market performance. Evaluating these factors helps determine whether the stock is a worthwhile investment.
Dividend Yield 0.0347 | Forward Dividend Yield 0.0347 | Forward Dividend Rate 2.92 | Beta 1.203 |
Basic technical analysis of Principal Stock
As of the 21st of November, Principal Financial holds the Semi Deviation of 1.36, risk adjusted performance of 0.0838, and Coefficient Of Variation of 955.49. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Principal Financial, as well as the relationship between them. Please check Principal Financial information ratio, as well as the relationship between the value at risk and expected short fall to decide if Principal Financial is priced some-what accurately, providing market reflects its current price of 84.7 per share. Given that Principal Financial has jensen alpha of 0.028, we recommend you to check out Principal Financial's recent market performance to make sure the company can sustain itself at a future point.Principal Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Principal Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Principal Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Principal Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Principal Financial's Outstanding Corporate Bonds
Principal Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Principal Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Principal bonds can be classified according to their maturity, which is the date when Principal Financial Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Principal Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Principal Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0838 | |||
| Market Risk Adjusted Performance | 0.1158 | |||
| Mean Deviation | 0.9678 | |||
| Semi Deviation | 1.36 | |||
| Downside Deviation | 1.53 | |||
| Coefficient Of Variation | 955.49 | |||
| Standard Deviation | 1.49 | |||
| Variance | 2.21 | |||
| Information Ratio | 0.0404 | |||
| Jensen Alpha | 0.028 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0394 | |||
| Treynor Ratio | 0.1058 | |||
| Maximum Drawdown | 9.84 | |||
| Value At Risk | (2.20) | |||
| Potential Upside | 2.17 | |||
| Downside Variance | 2.33 | |||
| Semi Variance | 1.84 | |||
| Expected Short fall | (1.12) | |||
| Skewness | (1.08) | |||
| Kurtosis | 6.49 |
| Risk Adjusted Performance | 0.0838 | |||
| Market Risk Adjusted Performance | 0.1158 | |||
| Mean Deviation | 0.9678 | |||
| Semi Deviation | 1.36 | |||
| Downside Deviation | 1.53 | |||
| Coefficient Of Variation | 955.49 | |||
| Standard Deviation | 1.49 | |||
| Variance | 2.21 | |||
| Information Ratio | 0.0404 | |||
| Jensen Alpha | 0.028 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0394 | |||
| Treynor Ratio | 0.1058 | |||
| Maximum Drawdown | 9.84 | |||
| Value At Risk | (2.20) | |||
| Potential Upside | 2.17 | |||
| Downside Variance | 2.33 | |||
| Semi Variance | 1.84 | |||
| Expected Short fall | (1.12) | |||
| Skewness | (1.08) | |||
| Kurtosis | 6.49 |
Consider Principal Financial's intraday indicators
Principal Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Principal Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Principal Financial Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 14th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 31st of October 2024 Other Reports | ViewVerify | |
10Q | 30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Principal Stock media impact
Far too much social signal, news, headlines, and media speculation about Principal Financial that are available to investors today. That information is available publicly through Principal media outlets and privately through word of mouth or via Principal internal channels. However, regardless of the origin, that massive amount of Principal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Principal Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Principal Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Principal Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Principal Financial alpha.
Principal Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Principal Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Principal Financial Historical Investor Sentiment
Investor biases related to Principal Financial's public news can be used to forecast risks associated with an investment in Principal. The trend in average sentiment can be used to explain how an investor holding Principal can time the market purely based on public headlines and social activities around Principal Financial Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Principal Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Principal Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Principal Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Principal Financial.
Principal Financial Corporate Management
| Nathan Schelhaas | Senior Segment | Profile | |
| Joel Pitz | Senior Controller | Profile | |
| JD CFA | Chief Management | Profile | |
| Christopher Payne | Senior Relations | Profile | |
| Ellen Shumway | Senior Management | Profile |
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 census. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Is Life & Health Insurance space 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 (0.06) | Dividend Share 2.79 | Earnings Share (0.74) | Revenue Per Share 59.953 | Quarterly Revenue Growth (0.34) |
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.
In summary, please note that there is a difference between Principal Financial's value and its price, as these two are different measures arrived at by various 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.