Principal Financial Group, Inc. (PFG)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I want durable franchises bought below intrinsic value. Principal Financial provides retirement, asset management, and insurance products, which can produce recurring fees and customer stickiness. But the filed numbers show uneven quality. In fiscal 2025, the year ended 2025-12-31, revenue was $15.6 billion and net income was $1.2 billion, down from $16.1 billion and $1.6 billion in fiscal 2024, the year ended 2024-12-31. In fiscal 2023, the year ended 2023-12-31, net income was $623.2 million on $13.7 billion of revenue. That is not smooth compounding. The given Lynch category is Slow Grower—Shrinking, with profit down about 3.2% a year over five years and revenue up 1.2%. At the 2026-10-13 close of $107.64, FairStock calculates a P/E of 15.31 and P/B of 1.90. Its Graham Number is $94.59, leaving a negative 13.80% margin of safety, and its FairStock Score is 43/100. FairStock's ROE is 12.95%, its Piotroski F-Score is 5/9, and its Altman Z-Score is 0.13, though that last measure is not well suited to a financial firm. Cash generation is the strongest feature: trailing free cash flow is $4.9 billion, a 20.9% FCF yield, and the dividend yield is 2.86%. Debt-to-equity is 0.35 and beta is 0.87. Growth is the problem. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $3.5 billion and net income was $424.6 million, versus $3.7 billion and $48.1 million in fiscal Q1 2025, the quarter ended 2025-03-31. One better quarter does not prove a turn. The moat is moderate—scale in retirement services helps, but asset management is competitive and insurance is capital-intensive. At this price, I see a fair-to-full valuation with limited margin of safety.

In plain English: Principal Financial Group sells retirement plans, asset management, and insurance products to businesses and individuals. The business looks mixed: profits have been uneven, and in fiscal 2025 revenue and net income were lower than in fiscal 2024. At the latest close of $107.64, the price looks a bit high compared with the company's assets and earnings history, though cash generation is strong and the dividend payout is about 2.86% of the share price.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer