Principal Financial Group Inc

Valuation Analysis

About the Company

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services. This segment offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, registered index-linked

Principal Financial Group Inc Stock at a Glance

Principal Financial Group Inc (PFG) is currently trading at $111.11 with a market capitalization of $24B. The trailing P/E ratio stands at 15.94x, with a forward P/E of 10.88x. The 52-week range spans from $75.00 to $111.51; the current price is 0.4% below the yearly high. Year-over-year revenue growth stands at -4.5%. The net profit margin stands at 10.1%.

💰 Dividend

Principal Financial Group Inc pays an annual dividend of $3.28 per share, representing a yield of 2.95%. The payout ratio stands at 44.91%.

📊 Analyst Rating

12 analysts rate Principal Financial Group Inc (PFG) on consensus: Hold. The average price target is $101.50, implying -8.65% from the current price. Analyst price targets range from $87.00 to $113.00.

Principal Financial Group Inc: The Investment Case in Detail

Principal Financial Group Inc (PFG) operates in the Financial Services — specifically Asset Management — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 819% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -4.5% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valuation in Context

The PEG ratio at 1.06 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 10.88x is meaningfully below the trailing 15.94x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 98.9% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.28%).

Trading Data

💵 Dividend Info

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