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PFG (Principal Financial Group) Piotroski F-Score : 4 (As of Dec. 13, 2024)


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What is Principal Financial Group Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Principal Financial Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Principal Financial Group's Piotroski F-Score or its related term are showing as below:

PFG' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Principal Financial Group was 9. The lowest was 4. And the median was 6.


Principal Financial Group Piotroski F-Score Historical Data

The historical data trend for Principal Financial Group's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Principal Financial Group Piotroski F-Score Chart

Principal Financial Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 6.00 7.00 7.00 4.00

Principal Financial Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 4.00 6.00 7.00 4.00

Competitive Comparison of Principal Financial Group's Piotroski F-Score

For the Asset Management subindustry, Principal Financial Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Principal Financial Group's Piotroski F-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Principal Financial Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Principal Financial Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -871.7 + 532.5 + 353.1 + -220 = $-206 Mil.
Cash Flow from Operations was 944 + 584.2 + 1431.7 + 1128 = $4,088 Mil.
Revenue was 2690.8 + 4053.3 + 4310.8 + 3011.6 = $14,067 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(287900 + 305000 + 308683.5 + 308777.3 + 322857.7) / 5 = $306643.7 Mil.
Total Assets at the begining of this year (Sep23) was $287,900 Mil.
Long-Term Debt & Capital Lease Obligation was $3,933 Mil.
Total Assets was $322,858 Mil.
Total Liabilities was $311,265 Mil.
Net Income was -16.2 + -140.1 + 388.8 + 1246.2 = $1,479 Mil.

Revenue was 3150.8 + 2819 + 3557.3 + 4598.7 = $14,126 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(282580.6 + 290867 + 299400 + 299200 + 287900) / 5 = $291989.52 Mil.
Total Assets at the begining of last year (Sep22) was $282,581 Mil.
Long-Term Debt & Capital Lease Obligation was $3,930 Mil.
Total Assets was $287,900 Mil.
Total Liabilities was $277,228 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Principal Financial Group's current Net Income (TTM) was -206. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Principal Financial Group's current Cash Flow from Operations (TTM) was 4,088. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=-206.1/287900
=-0.00071587

ROA (Last Year)=Net Income/Total Assets (Sep22)
=1478.7/282580.6
=0.00523284

Principal Financial Group's return on assets of this year was -0.00071587. Principal Financial Group's return on assets of last year was 0.00523284. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Principal Financial Group's current Net Income (TTM) was -206. Principal Financial Group's current Cash Flow from Operations (TTM) was 4,088. ==> 4,088 > -206 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=3932.9/306643.7
=0.01282563

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=3930.2/291989.52
=0.01346007

Principal Financial Group's gearing of this year was 0.01282563. Principal Financial Group's gearing of last year was 0.01346007. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep24)=Total Assets/Total Liabilities
=322857.7/311264.5
=1.03724549

Current Ratio (Last Year: Sep23)=Total Assets/Total Liabilities
=287900/277228.4
=1.03849389

Principal Financial Group's current ratio of this year was 1.03724549. Principal Financial Group's current ratio of last year was 1.03849389. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Principal Financial Group's number of shares in issue this year was 230.7. Principal Financial Group's number of shares in issue last year was 244.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=-206.1/14066.5
=-0.01465183

Net Margin (Last Year: TTM)=Net Income/Revenue
=1478.7/14125.8
=0.1046808

Principal Financial Group's net margin of this year was -0.01465183. Principal Financial Group's net margin of last year was 0.1046808. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=14066.5/287900
=0.04885898

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=14125.8/282580.6
=0.04998857

Principal Financial Group's asset turnover of this year was 0.04885898. Principal Financial Group's asset turnover of last year was 0.04998857. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Principal Financial Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Principal Financial Group  (NAS:PFG) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Principal Financial Group Piotroski F-Score Related Terms

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Principal Financial Group Business Description

Traded in Other Exchanges
Address
711 High Street, Des Moines, IA, USA, 50392
Principal Financial Group Inc is a leader in Global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through diverse family of financial services companies. It operates in four business segments that are Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions. The company receives maximum revenue in the form of premiums.
Executives
Luis E. Valdes officer: Executive Chairman, Latam 711 HIGH STREET, DES MOINES IA 50392-0300
Sandra L Helton director 711 HIGH STREET, DES MOINES IA 50392-0300
Wee Yee Cheong officer: EVP, Principal Asia 711 HIGH STREET, DES MOINES IA 50392
Roberto Walker officer: EVP, Principal Latin American 711 HIGH ST., DES MOINES IA 50392
Renee V. Schaaf officer: President - RIS 711 HIGH STREET, DES MOINES IA 50392
Natalie Lamarque officer: EVP, General Counsel, and Secr 711 HIGH STREET, DES MOINES IA 50392
H Elizabeth Mitchell director PLATINUM UNDERWRITERS REINSURANCE, INC., 2 WORLD FINANCIAL CENTER, SUITE 2300, NEW YORK NY 10281
Jonathan Auerbach director C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Claudio Muruzabal director 711 HIGH STREET, DES MOINES IA 50392
Maliz E Beams director C/O PORT FINANCIAL CORP, 1380 SOLDIERS FIELD RD, BRIGHTON MA 02135
Alfredo Rivera director THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Scott Mills director 1515 BROADWAY, NEW YORK NY 10036
Clare Stack Richer director BAIN CAPITAL, LP, 200 CLARENDON STREET, BOSTON MA 02116
Diane C Nordin director 711 HIGH ST., DES MOINES IA 50392
Roger C Hochschild director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015