Prudential Financial, Inc. [NYSE:PRU]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Prudential Financial, Inc. [PRU], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give PRU an Outperform rating. Its stock price has been found in the range of 75.61 to 106.64. This is compared to its latest closing price of $99.74.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Prudential Financial, Inc. [PRU] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 1.89.
For the quarter ending in Mar-19 Prudential Financial, Inc. [PRU] generated $13.65 billion in sales. That’s 0.10% lower than the average estimate of $13.66 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 7 Aug (In 55 Days).
Fundamental Analysis of Prudential Financial, Inc. [PRU]
Now let’s turn to look at profitability: with a current Operating Margin for Prudential Financial, Inc. [PRU] sitting at +8.36, this company’s Net Margin is now 5.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.98, and its Return on Invested Capital has reached 5.60%. Its Return on Equity is 7.84, and its Return on Assets is 0.49. These metrics suggest that this Prudential Financial, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Prudential Financial, Inc. [PRU] has generated a Total Debt to Total Equity ratio of 71.30. Similarly, its Total Debt to Total Capital is 41.62, while its Total Debt to Total Assets stands at 4.25. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 37.71, and its Long-Term Debt to Total Capital is 22.01.
What about valuation? This company’s Enterprise Value to EBITDA is 11.31. The Enterprise Value to Sales for this firm is now 0.95, and its Total Debt to Enterprise Value stands at 0.50. Prudential Financial, Inc. [PRU] has a Price to Book Ratio of 0.69, a Price to Cash Flow Ratio of 1.60 and P/E Ratio of 11.52. These metrics all suggest that Prudential Financial, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Prudential Financial, Inc. [PRU] earns $1,211,836 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.07. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 1.59.
Prudential Financial, Inc. [PRU] has 407.80M shares outstanding, amounting to a total market cap of $40.27B. Its stock price has been found in the range of 75.61 to 106.64. At its current price, it has moved by -7.39% from its 52-week high, and it has moved 30.62% from its 52-week low.
This stock’s Beta value is currently 1.50, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.17. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Prudential Financial, Inc. [PRU] a Reliable Buy?
Prudential Financial, Inc. [PRU] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.