Stock Price & Analysis

Based on current market conditions and analyst expectations, it is recommended to hold PFG stock as it has modest upside potential and a "Hold" consensus rating. Selling is not advised due to its strong fundamentals and dividend stability.

PFG stock is predicted to reach $89 by year-end 2025, driven by strong EPS growth of 9-12% and a mean analyst target of $86.07. The stock's current price of $83.58 and improving technical indicators support this bullish outlook.

The S1 support level for PFG Stock is $81.54 ,The R1 resistant level for PFG Stock is $89.08.

As of the end of day on 2025-03-13, the price of PFG Stock was $80.53.

The target price for PFG Stock according to analyst rating is 85.40, with the highest price target at 93.00 and the lowest at 74.00. Analysts have a Hold rating on PFG Stock overall.

The market cap of PFG is $18.2B.

Analysis and Insights

Valuation Metrics:

PFG's valuation metrics suggest it may be undervalued compared to industry peers. The current P/E ratio of 11.59 (Q4 2024) is below the industry average, indicating potential undervaluation. Similarly, the EV/EBITDA ratio of 12.47 is lower than sector norms, further supporting this view. The price-to-sales (P/S) ratio of 1.16 and price-to-book (P/B) ratio of 1.58 are also below industry averages, suggesting the stock may be attractively priced.

Financial Performance:

PFG has demonstrated stable financial performance, with Q4 2024 revenue of $3,966.5 million and net income of $905.4 million. The company maintains a strong return on equity (ROE) of 14.28% and a net margin of 22.75%, indicating robust profitability. The debt-to-equity ratio of 36.9% reflects manageable leverage, and the current ratio of 1.81 suggests adequate liquidity.

Dividend Yield and Analyst Sentiment:

PFG offers a dividend yield of 3.68%, which is attractive for income-focused investors. Analysts maintain a "Hold" consensus rating, with a mean price target of $86.07, representing a modest 3% upside from current levels. The stock has underperformed the S&P 500 over the past year but has shown resilience in recent months, with a 9% YTD gain.

Conclusion:

Based on the analysis, PFG does not appear overvalued. Its valuation metrics are below industry averages, and the company demonstrates strong financial health with attractive profitability and dividend yield. While analyst sentiment is mixed, the stock offers a compelling combination of value and income potential.

Principal Financial Group, Inc. is a global financial company. The Company offers businesses, individuals and institutional clients a range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. The Company's segments include retirement and income solutions, principal asset management, and benefits and protection. The Retirement and Income Solutions segment offers workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, and pension risk transfer, among others. The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail and high net worth investors. The Benefits and Protection segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance, supplemental health products, and individual disability insurance, and life insurance.

The price prediction for PFG stock by 2030 is $90 per share. This forecast is based on the company's strong EPS growth outlook of 9-12%, its mean analyst price target of $86.07, and its inclusion in ESG ETFs, which may enhance its long-term value. Additionally, PFG's stable dividend and improving ROE support this bullish outlook.

PFG has a total of 19800 employees.