Prudential Financial Return On Equity vs. Revenue

PRU Stock  USD 129.52  0.41  0.32%   
Taking into consideration Prudential Financial's profitability measurements, Prudential Financial may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in December. Profitability indicators assess Prudential Financial's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.08943206
Current Value
0.0745
Quarterly Volatility
0.06714373
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to gain to -11.3 in 2024. Days Sales Outstanding is likely to drop to 15.69 in 2024. At this time, Prudential Financial's Income Before Tax is comparatively stable compared to the past year. Net Income is likely to gain to about 2.8 B in 2024, despite the fact that Net Loss is likely to grow to (1.6 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile
For Prudential Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prudential Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prudential Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prudential Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prudential Financial over time as well as its relative position and ranking within its peers.
  

Prudential Financial's Revenue Breakdown by Earning Segment

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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 Prudential Financial. If investors know Prudential 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 Prudential 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
1.377
Dividend Share
5.15
Earnings Share
11.23
Revenue Per Share
203.375
Quarterly Revenue Growth
1.334
The market value of Prudential Financial is measured differently than its book value, which is the value of Prudential that is recorded on the company's balance sheet. Investors also form their own opinion of Prudential Financial's value that differs from its market value or its book value, called intrinsic value, which is Prudential 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 Prudential Financial's market value can be influenced by many factors that don't directly affect Prudential 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 Prudential Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prudential Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prudential 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.

Prudential Financial Revenue vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Prudential Financial's current stock value. Our valuation model uses many indicators to compare Prudential Financial value to that of its competitors to determine the firm's financial worth.
Prudential Financial is regarded fourth in return on equity category among its peers. It is rated below average in revenue category among its peers . At this time, Prudential Financial's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Prudential Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Prudential Revenue vs. Return On Equity

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.

Prudential Financial

Return On Equity

 = 

Net Income

Total Equity

 = 
0.14
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.
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.

Prudential Financial

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
(3.17 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.

Prudential Revenue vs Competition

Prudential Financial is rated below average in revenue category among its peers. Market size based on revenue of Financials industry is at this time estimated at about 172.97 Billion. Prudential Financial has negative revenue of (3.17 Billion) having no influence on the industry.

Prudential Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Prudential Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prudential Financial will eventually generate negative long term returns. The profitability progress is the general direction of Prudential Financial's change in net profit over the period of time. It can combine multiple indicators of Prudential 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-6.5 B-6.2 B
Operating Income-116 M-110.2 M
Income Before Tax3.1 B3.2 B
Net Loss-1.7 B-1.6 B
Net Income2.5 B2.8 B
Income Tax Expense613 M580.3 M
Total Other Income Expense Net3.1 B3.2 B
Net Income From Continuing Ops2.5 B3.3 B
Net Interest Income-1.4 B-1.5 B
Non Operating Income Net Other-50.4 M-47.9 M
Change To Netincome3.8 BB
Net Income Per Share 6.84  4.74 
Income Quality 2.60  2.48 
Net Income Per E B T 0.81  1.02 

Prudential Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Prudential 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 Prudential 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 Prudential Financial's important profitability drivers and their relationship over time.

Use Prudential 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 Prudential 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 Prudential Financial will appreciate offsetting losses from the drop in the long position's value.

Prudential Financial Pair Trading

Prudential Financial Pair Trading Analysis

The ability to find closely correlated positions to Prudential 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 Prudential 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 Prudential 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 Prudential Financial to buy it.
The correlation of Prudential 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 Prudential Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Prudential 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 Prudential 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Prudential Financial position

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Additional Tools for Prudential Stock Analysis

When running Prudential Financial's price analysis, check to measure Prudential 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 Prudential Financial is operating at the current time. Most of Prudential Financial's value examination focuses on studying past and present price action to predict the probability of Prudential 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 Prudential Financial's price. Additionally, you may evaluate how the addition of Prudential Financial to your portfolios can decrease your overall portfolio volatility.