Prudential Financial Profitability Analysis
| PRS Stock | USD 23.71 0.03 0.13% |
Net Income | First Reported 2001-12-31 | Previous Quarter 413 M | Current Value -32 M | Quarterly Volatility 927.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.88 | 1.21 |
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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 |
Prudential Financial's Revenue Breakdown by Earning Segment
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Is Diversified Metals & Mining 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.
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 considered to be number one stock in return on equity category among its peers. It also is rated top company in revenue category among its peers totaling about 598,173,322,005 of Revenue per Return On Equity. 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 |
| = | 0.12 |
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 |
| = | 70.41 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 top company in revenue category among its peers. Market size based on revenue of Materials industry is at this time estimated at about 386.68 Billion. Prudential Financial retains roughly 70.41 Billion in revenue claiming about 18% of all equities under Materials 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -7.5 B | -7.1 B | |
| Operating Income | 57.1 B | 59.9 B | |
| Income Before Tax | 3.2 B | 3.3 B | |
| Total Other Income Expense Net | -53.9 B | -51.2 B | |
| Net Income | 2.8 B | 2.9 B | |
| Income Tax Expense | 507 M | 589.1 M | |
| Net Loss | -1.6 B | -1.5 B | |
| Net Loss | -1.7 B | -1.6 B | |
| Non Operating Income Net Other | -50.4 M | -47.9 M | |
| Change To Netincome | 3.8 B | 4 B | |
| Net Income Per Share | 7.54 | 5.62 | |
| Income Quality | 2.99 | 3.54 | |
| Net Income Per E B T | 0.84 | 0.96 |
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.
Prudential Financial Profitability Trends
Prudential Financial profitability trend refers to the progression of profit or loss within a business. An upward trend means that Prudential Financial's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Prudential Financial's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Prudential Financial Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Prudential Financial different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Prudential Financial in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Prudential Financial's future profitability.
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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.