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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.52
PFG's Cash to Debt is ranked higher than
73% of the 146 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.19 vs. PFG: 0.52 )
PFG' s 10-Year Cash to Debt Range
Min: 0.11   Max: No Debt
Current: 0.52

Equity to Asset 0.05
PFG's Equity to Asset is ranked higher than
73% of the 153 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.06 vs. PFG: 0.05 )
PFG' s 10-Year Equity to Asset Range
Min: 0.02   Max: 0.08
Current: 0.05

0.02
0.08
Interest Coverage 7.89
PFG's Interest Coverage is ranked higher than
78% of the 134 Companies
in the Global Insurance - Life industry.

( Industry Median: 7.86 vs. PFG: 7.89 )
PFG' s 10-Year Interest Coverage Range
Min: 6.54   Max: 9999.99
Current: 7.89

6.54
9999.99
F-Score: 4
Z-Score: 0.15
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 12.10
PFG's Operating margin (%) is ranked higher than
87% of the 148 Companies
in the Global Insurance - Life industry.

( Industry Median: 8.18 vs. PFG: 12.10 )
PFG' s 10-Year Operating margin (%) Range
Min: 4.64   Max: 13.48
Current: 12.1

4.64
13.48
Net-margin (%) 9.83
PFG's Net-margin (%) is ranked higher than
90% of the 150 Companies
in the Global Insurance - Life industry.

( Industry Median: 4.94 vs. PFG: 9.83 )
PFG' s 10-Year Net-margin (%) Range
Min: 1.86   Max: 10.78
Current: 9.83

1.86
10.78
ROE (%) 9.42
PFG's ROE (%) is ranked higher than
81% of the 150 Companies
in the Global Insurance - Life industry.

( Industry Median: 9.91 vs. PFG: 9.42 )
PFG' s 10-Year ROE (%) Range
Min: 2.14   Max: 18.53
Current: 9.42

2.14
18.53
ROA (%) 0.44
PFG's ROA (%) is ranked higher than
74% of the 150 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.57 vs. PFG: 0.44 )
PFG' s 10-Year ROA (%) Range
Min: 0.16   Max: 0.74
Current: 0.44

0.16
0.74
ROC (Joel Greenblatt) (%) 224.49
PFG's ROC (Joel Greenblatt) (%) is ranked higher than
79% of the 123 Companies
in the Global Insurance - Life industry.

( Industry Median: 226.30 vs. PFG: 224.49 )
PFG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 89.02   Max: 315.1
Current: 224.49

89.02
315.1
Revenue Growth (%) 3.00
PFG's Revenue Growth (%) is ranked higher than
79% of the 140 Companies
in the Global Insurance - Life industry.

( Industry Median: 2.90 vs. PFG: 3.00 )
PFG' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 15.6
Current: 3

0
15.6
EBITDA Growth (%) 13.40
PFG's EBITDA Growth (%) is ranked higher than
90% of the 133 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.60 vs. PFG: 13.40 )
PFG' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 91.8
Current: 13.4

0
91.8
EPS Growth (%) 14.80
PFG's EPS Growth (%) is ranked higher than
89% of the 135 Companies
in the Global Insurance - Life industry.

( Industry Median: 6.50 vs. PFG: 14.80 )
PFG' s 10-Year EPS Growth (%) Range
Min: 0   Max: 56.4
Current: 14.8

0
56.4
» PFG's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

PFG Guru Trades in Q3 2013

Steven Cohen 6,204 sh (New)
Jeremy Grantham 155,771 sh (+52.27%)
Bill Nygren 4,500,000 sh (unchged)
Ray Dalio Sold Out
Bill Frels 2,639,222 sh (-1.79%)
» More
Q4 2013

PFG Guru Trades in Q4 2013

Paul Tudor Jones 14,473 sh (New)
Steven Cohen 57,130 sh (+820.86%)
Jeremy Grantham 162,928 sh (+4.59%)
Bill Frels 2,613,332 sh (-0.98%)
Bill Nygren 4,429,000 sh (-1.58%)
» More
Q1 2014

PFG Guru Trades in Q1 2014

David Dreman 1,017 sh (New)
Louis Moore Bacon 9,438 sh (New)
Bill Nygren 4,429,000 sh (unchged)
Paul Tudor Jones Sold Out
Bill Frels 2,610,414 sh (-0.11%)
Jeremy Grantham 113,200 sh (-30.52%)
Steven Cohen 6,625 sh (-88.4%)
» More
Q2 2014

PFG Guru Trades in Q2 2014

Manning & Napier Advisors, Inc 31,940 sh (New)
» More
» Details

Insider Trades

Latest Guru Trades with PFG

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Dreman 2014-03-31 New Buy$41.71 - $49.79 $ 51.7913%1017
Ray Dalio 2013-09-30 Sold Out $36.97 - $44.85 $ 51.7924%0
Ray Dalio 2013-06-30 New Buy$33.34 - $38.88 $ 51.7942%6600
Ray Dalio 2012-12-31 Sold Out 0.0045%$26.17 - $28.7 $ 51.7988%0
Ray Dalio 2012-09-30 New Buy$24.98 - $29.16 $ 51.7995%12382
Ray Dalio 2012-06-30 Sold Out 0.01%$23.32 - $29.69 $ 51.7999%0
Ray Dalio 2012-03-31 Reduce -64.93%0.01%$24.47 - $29.68 $ 51.79102%11882
Ray Dalio 2011-09-30 Add 281.26%0.01%$21.63 - $30.86 $ 51.79103%39582
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Preferred stocks of Principal Financial Group

SymbolPriceYieldDescription
PFGZP101.755.47Pfd Shs Series -A
PFGPRB0.006.34Series B Preferred Stock, NonCumulative

Guru Investment Theses on Principal Financial Group

Bill Frels Comments on Principal Financial Group - Jun 25, 2014

Principal Financial Group (PFG) declined 6.73% following a tremendous 2013, and we view this simply as a correction.



From Bill Frels' Mairs & Power Balance Fund First Quarter 2014 Commentary.



Check out Bill Frels latest stock trades

Bill Nygren Comments on Principal Financial Group - Oct 08, 2012

Principal Financial Group (PFG-$27)
Principal Financial is a leader in providing administration services and asset management for small to mid-sized corporate retirement plans. Additionally, just over a third of its income comes from various life, annuity and dental insurance operations. Despite the overwhelming majority of income coming from the asset management business, the stock is priced like a less attractive insurer. In 2007, before the financial collapse, Principal stock surpassed $70 when operating earnings were $3.93 and book value was $26.55. So, the P/E ratio was 18x, and the stock sold for about 265% of its book value. Today, the stock sells at about 85% of expected year-end book value and at less than 9x expected 2013 earnings. Assets under management have been growing nicely; inflows alone account for a mid-single-digit growth rate. Because of Principal’s strength in asset accumulation in emerging markets, we believe that growth rate is sustainable. Further, the company is repurchasing about 3% of its shares each year, and it recently raised its dividend to a current yield of more than 3%. We believe that investors’ distaste for owning financial services stocks has given us a very attractive entry price for this investment.

From Oakmark Funds' third-quarter letter to shareholders.

Check out Bill Nygren latest stock trades

Top Ranked Articles about Principal Financial Group

Bill Frels Comments on Principal Financial Group
Principal Financial Group (PFG) declined 6.73% following a tremendous 2013, and we view this simply as a correction. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.40
PFG's P/E(ttm) is ranked higher than
81% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 15.70 vs. PFG: 15.40 )
PFG' s 10-Year P/E(ttm) Range
Min: 4.37   Max: 29.04
Current: 15.4

4.37
29.04
P/B 1.53
PFG's P/B is ranked higher than
76% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.47 vs. PFG: 1.53 )
PFG' s 10-Year P/B Range
Min: 0.46   Max: 2.48
Current: 1.53

0.46
2.48
P/S 1.60
PFG's P/S is ranked higher than
68% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.80 vs. PFG: 1.60 )
PFG' s 10-Year P/S Range
Min: 0.16   Max: 1.77
Current: 1.6

0.16
1.77
PFCF 7.64
PFG's PFCF is ranked higher than
77% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.58 vs. PFG: 7.64 )
PFG' s 10-Year PFCF Range
Min: 0.76   Max: 11.62
Current: 7.64

0.76
11.62
EV-to-EBIT 12.20
PFG's EV-to-EBIT is ranked higher than
78% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 11.95 vs. PFG: 12.20 )
PFG' s 10-Year EV-to-EBIT Range
Min: 0.2   Max: 25
Current: 12.2

0.2
25
PEG 1.49
PFG's PEG is ranked higher than
81% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 2.02 vs. PFG: 1.49 )
PFG' s 10-Year PEG Range
Min: 0.41   Max: 7.13
Current: 1.49

0.41
7.13
Shiller P/E 22.04
PFG's Shiller P/E is ranked higher than
84% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 25.60 vs. PFG: 22.04 )
PFG' s 10-Year Shiller P/E Range
Min: 2.08   Max: 25.63
Current: 22.04

2.08
25.63

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.16
PFG's Dividend Yield is ranked higher than
55% of the 135 Companies
in the Global Insurance - Life industry.

( Industry Median: 2.10 vs. PFG: 2.16 )
PFG' s 10-Year Dividend Yield Range
Min: 1.23   Max: 5.63
Current: 2.16

1.23
5.63
Dividend Payout 0.33
PFG's Dividend Payout is ranked higher than
90% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.59 vs. PFG: 0.33 )
PFG' s 10-Year Dividend Payout Range
Min: -15.52   Max: 6.98
Current: 0.33

-15.52
6.98
Dividend growth (3y) 21.20
PFG's Dividend growth (3y) is ranked higher than
89% of the 100 Companies
in the Global Insurance - Life industry.

( Industry Median: 6.60 vs. PFG: 21.20 )
PFG' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 37.5
Current: 21.2

0
37.5
Yield on cost (5-Year) 5.14
PFG's Yield on cost (5-Year) is ranked higher than
79% of the 135 Companies
in the Global Insurance - Life industry.

( Industry Median: 3.35 vs. PFG: 5.14 )
PFG' s 10-Year Yield on cost (5-Year) Range
Min: 2.87   Max: 13.16
Current: 5.14

2.87
13.16
Share Buyback Rate 2.60
PFG's Share Buyback Rate is ranked higher than
93% of the 125 Companies
in the Global Insurance - Life industry.

( Industry Median: -0.30 vs. PFG: 2.60 )
PFG' s 10-Year Share Buyback Rate Range
Min: 0   Max: -6.7
Current: 2.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.04
PFG's Price/Tangible Book is ranked higher than
73% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.77 vs. PFG: 2.04 )
PFG' s 10-Year Price/Tangible Book Range
Min: 0.8   Max: 4.99
Current: 2.04

0.8
4.99
Price/DCF (Projected) 0.50
PFG's Price/DCF (Projected) is ranked higher than
81% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.48 vs. PFG: 0.50 )
PFG' s 10-Year Price/DCF (Projected) Range
Min: 0.07   Max: 0.67
Current: 0.5

0.07
0.67
Price/Median PS Value 1.20
PFG's Price/Median PS Value is ranked higher than
72% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.04 vs. PFG: 1.20 )
PFG' s 10-Year Price/Median PS Value Range
Min: 0.17   Max: 1.27
Current: 1.2

0.17
1.27
Price/Peter Lynch Fair Value 0.99
PFG's Price/Peter Lynch Fair Value is ranked higher than
90% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 9999.00 vs. PFG: 0.99 )
PFG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 2.72
Current: 0.99

0.6
2.72
Price/Graham Number 1.11
PFG's Price/Graham Number is ranked higher than
77% of the 154 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.07 vs. PFG: 1.11 )
PFG' s 10-Year Price/Graham Number Range
Min: 0.59   Max: 1.66
Current: 1.11

0.59
1.66
Earnings Yield (Greenblatt) 8.20
PFG's Earnings Yield (Greenblatt) is ranked higher than
73% of the 149 Companies
in the Global Insurance - Life industry.

( Industry Median: 9.30 vs. PFG: 8.20 )
PFG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4   Max: 422.6
Current: 8.2

4
422.6
Forward Rate of Return (Yacktman) 28.19
PFG's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 133 Companies
in the Global Insurance - Life industry.

( Industry Median: 21.65 vs. PFG: 28.19 )
PFG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 5.1   Max: 125.1
Current: 28.19

5.1
125.1

Business Description

Industry: Insurance - Life » Insurance - Life
Compare:LFC, PIAIF, AAGIY, CNPAY, CHPXF » details
Traded in other countries:PG4.Germany, PFGZP.USA
Principal Financial Group, Inc. was incorporated in Delaware. The Company is a provider of retirement savings, investment and insurance products and services. The Company's U.S. and international operations concentrate primarily on asset accumulation and asset management. In addition, it offers a broad range of individual and group life insurance, individual and group disability insurance and group dental and vision insurance. The Company primarily focuses on small and medium-sized businesses, which it defines as companies with less than 1,000 employees, providing a broad array of retirement and employee benefit solutions to meet the needs of the business, the business owner and their employees. The Company organizes its businesses into the following reportable segments: Retirement and Investor Services; Principal Global Investors; Principal International and U.S. Insurance Solutions. Its Retirement and Investor Services segment offers products and services for defined contribution pension plans, including 401(k) and 403(b) plans, defined benefit pension plans, non-qualified executive benefit plans and employee stock ownership plan ("ESOP") consulting services. The Company's Principal Global Investors segment manages assets for sophisticated investors around the world, using a multi-boutique strategy that enables the segment to provide an expanded range of diverse investment capabilities including equity, fixed income and real estate investments. Its Principal International segment has operations in Brazil, Chile, China, Hong Kong Special Administrative Region, India, Mexico and Southeast Asia. The Company focuses on countries with large middle classes, favorable demographics, and growing long-term savings, ideally with defined contribution retirement markets. The Company's U.S. Insurance Solutions segment offers individual life insurance and specialty benefits, which include group dental, group vision, group life, group disability, wellness and individual disability insurance. It focuses on providing comprehensive insurance solutions for small and medium-sized businesses and their owners and executives. The Company's businesses are subject to regulation and supervision by U.S. federal and state regulatory authorities as well as non-U.S. regulatory authorities for its operations outside the U.S., which can have a significant effect on its business.
» More Articles for PFG

Headlines

Articles On GuruFocus.com
Bill Frels Comments on Principal Financial Group Jun 25 2014 
Bill Frels' Mairs & Power Balance Fund First Quarter 2014 Commentary Jun 25 2014 
Why Principal’s Retirement Insurance May Be Its Best Asset Apr 14 2014 
14 Stocks Building Deferred Gratification with Increased Dividends Jul 29 2013 
Bill Nygren Calls Financials a ‘Unusual Opportunity,’ His Favorites and a New Buy Nov 30 2012 
Nygren Buys UnitedHealth, Principal Financial and Cummins Inc., Sells Diageo and Best Buy Nov 30 2012 
comment on PFG Oct 29 2012 
comment on PFG Oct 22 2012 
comment on PFG Oct 08 2012 
Bill Nygren Comments on Principal Financial Group Oct 08 2012 


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