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Principal Financial GroupPFG +0.75%70 Return-on-Tangible-Asset is 0.51% as of Mar. 2026, which is 6% below its 10-year median of 0.54. GuruFocus rates PFG with a GF Scoreâ„¢ of 70/100 and a GF Valueâ„¢ of $91.08 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,635 Asset Management companies, Principal Financial Group ranks worse than 70.46% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Principal Financial Group's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,698 Mil. Principal Financial Group's average total tangible assets for the quarter that ended in Mar. 2026 was $334,176 Mil. Therefore, Principal Financial Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 0.51%.
The historical rank and industry rank for Principal Financial Group's Return-on-Tangible-Asset or its related term are showing as below:
PFG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.21 Med: 0.54 Max: 1.61
Current: 0.48
During the past 13 years, Principal Financial Group's highest Return-on-Tangible-Asset was 1.61%. The lowest was 0.21%. And the median was 0.54%.
PFG's Return-on-Tangible-Asset is ranked worse than 70.46% of 1635
companies
in the Asset Management industry
Industry Median: 4.23
vs PFG: 0.48
Principal Financial Group (NAS:PFG) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companyÂ’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companyÂ’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Principal Financial Group Return-on-Tangible-Asset Related Terms
Principal Financial Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Principal Financial Group's Return-on-Tangible-Asset 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.
Principal Financial Group Return-on-Tangible-Asset Chart
PFG vs TROW, ARES, RJF: Return-on-Tangible-Asset Comparison
For the Asset Management subindustry, Principal Financial Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Principal Financial Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Principal Financial Group's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 0.51% mean?
Principal Financial Group (PFG) has a Return-on-Tangible-Asset of 0.51% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Principal Financial Group and its competitors. This is near median its historical median of 0.54. Over the past decade, Principal Financial Group's Return-on-Tangible-Asset has ranged from 0.21 to 1.61. According to the industry distribution chart, Principal Financial Group ranks #1152 out of 1635 companies in the Asset Management industry, placing it in the top 70.5%.
Is Principal Financial Group's Return-on-Tangible-Asset too high?
Principal Financial Group's current Return-on-Tangible-Asset of 0.51% is near median its 10-year median of 0.54. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 1.61. The Asset Management industry median Return-on-Tangible-Asset is 4.23. Principal Financial Group's value of 0.51% is 87.9% below this industry median. Based on the distribution chart, Principal Financial Group ranks #1152 out of 1635 companies in the Asset Management industry, which is below the industry midpoint. Overall, Principal Financial Group has a GF Scoreâ„¢ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Principal Financial Group's Return-on-Tangible-Asset compare to TROW and ARES?
According to the Asset Management industry distribution chart, Principal Financial Group ranks #1152 out of 1635 companies for Return-on-Tangible-Asset. This places Principal Financial Group in the lower half of its industry. The industry median Return-on-Tangible-Asset is 4.23. Principal Financial Group's value of 0.51% is 87.9% below this benchmark. Historically, Principal Financial Group's own Return-on-Tangible-Asset has ranged from 0.21 to 1.61 over the past decade. While the company's 10-year median is 0.54 vs. the industry median of 4.23, Principal Financial Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Asset Management company?
The median Return-on-Tangible-Asset among Asset Management companies is 4.23, based on 1,635 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Principal Financial Group's current Return-on-Tangible-Asset of 0.51% is 87.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Principal Financial Group and its competitors. For the Asset Management industry, the median Return-on-Tangible-Asset is 4.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Principal Financial Group's current Return-on-Tangible-Asset is 0.51%, which is near median its own 10-year median of 0.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Principal Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Principal Financial Group (PFG) is currently considered Modestly Overvalued. The stock's GF Value™ is $91.08, compared to a current price of $113.91 — trading 25.1% above its estimated fair value. The current Return-on-Tangible-Asset is 0.51%, which is near median its 10-year median of 0.54 and 87.9% below the Asset Management industry median of 4.23. Principal Financial Group's overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Principal Financial Group (PFG), the current Return-on-Tangible-Asset is 0.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Principal Financial Group (PFG) Overvalued in 2026?
Based on GuruFocus' analysis, Principal Financial Group stock appears to be overvalued.
The current stock price of $113.91 is trading 25.1% above its estimated GF Value™ of $91.08.
GuruFocus considers Principal Financial Group to be Modestly Overvalued.
Key valuation signals for PFG:
Return-on-Tangible-Asset: 0.51% (near median its 10-year median of 0.54)
GF Value™: $91.08 vs. price of $113.91 (25.1% above fair value)
Industry Position: 87.9% below the Asset Management median (#1152 of 1635)
No single metric tells the full story. See the PFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Principal Financial Group Inc is a financial services provider. It offers various financial products and services including retirement, asset management, and workplace benefits and protection solutions to individuals and institutional clients. The company, along with its subsidiaries, operates in the following reportable segments; Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Maximum revenue is generated from the Retirement and Income Solutions segment which provides workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities (including RILAs), pension risk transfer, and investment services to businesses, their employees, and other individuals.
70GF Score
Get the complete analysis for PFG
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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