Core Insights - Principal Financial Group has announced a strategic partnership with Barings to enhance its general account portfolio through an allocation of up to $1 billion in bespoke private investment grade portfolio finance investments [1] Group 1 - The investments will be structured as a separately managed account and a co-investment structure [1] - Principal Asset Management will manage the co-investment structure [1]

Core Insights - Principal Financial Group, Inc. (PFG) has a market capitalization of $18.8 billion and is a prominent global investment management company focusing on retirement, asset management, and insurance products and services [1] - The company is expected to report an adjusted EPS of $2.17 for fiscal Q3 2025, representing a 23.3% increase from $1.76 in the same quarter last year [2] - For fiscal 2025, analysts project an adjusted EPS of $8.28, indicating an 18.8% growth from $6.97 in fiscal 2024 [3] Stock Performance - Over the past 52 weeks, PFG shares have decreased by 3.6%, underperforming the S&P 500 Index, which gained 17.2%, and the Financial Select Sector SPDR Fund, which increased by 19.2% [4] - Following the release of better-than-expected Q2 2025 adjusted EPS of $2.16, the stock experienced a slight decline due to missing revenue estimates and a significant drop in Retirement and Income Solution revenues by 21.7% [5] Analyst Ratings - The consensus among analysts regarding PFG stock is cautious, with an overall "Hold" rating; out of 15 analysts, four recommend "Strong Buy," eight suggest "Hold," one indicates "Moderate Sell," and two have a "Strong Sell" rating [6] - The average analyst price target for Principal Financial is $86.23, suggesting a potential upside of 2.4% from current levels [6]

Core Insights - Principal Financial Group, Inc. (PFG) focuses on stable, recurring revenue streams, particularly in retirement and long-term savings, driven by strong demand in both U.S. and international markets [1][3] - The company has a solid presence in group benefits and protection, alongside a growing global asset management franchise, which reduces dependence on interest rate fluctuations [2][3] - PFG is experiencing steady growth in retirement and benefits, especially within the U.S. small to midsize business segment, supported by strong employment trends and rising wages [3][4] Business Strategy - PFG has utilized select acquisitions to enhance its core businesses, including the purchase of Wells Fargo's Institutional Retirement and Trust business, which has expanded its scale and service capabilities [4] - The company emphasizes fee-based income and aims to expand assets under management, contributing to a more resilient earnings profile [2][3] Financial Performance - Over the past five years, PFG has raised its dividend 12 times, with payouts increasing nearly 6%, and the current payout ratio is about 40% of earnings [5] - Management anticipates capital deployment to remain high in the second half of 2025, targeting $1.4 billion to $1.7 billion, including $700 million to $1 billion in share repurchases [6] Challenges - PFG faces rising operating expenses and increased claims costs, which could pressure profitability [7] - The return on invested capital (ROIC) for the trailing 12 months was 0.5%, significantly lower than the industry average of 2%, indicating inefficiencies in utilizing shareholders' funds [8] - The company's earnings history shows disappointing results, lagging estimates in three of the last four quarters with an average negative earnings surprise of 1.5% [9] Industry Context - Other players in the Insurance - Multi line sector include Radian Group Inc., Everest Group, and EverQuote, with Radian Group showing strong earnings performance [10][11] - Everest Group's growth is supported by product diversification and a balanced insurance mix, while EverQuote is positioned for long-term growth through digital adoption and technology investments [13][15]

Core Viewpoint - The article compares Principal Financial (PFG) and Prudential (PUK) to determine which stock is more attractive to value investors, highlighting PFG's stronger valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - PFG has a forward P/E ratio of 9.98, while PUK has a forward P/E of 13.38 [5]. - PFG's PEG ratio is 0.78, compared to PUK's PEG ratio of 0.79, indicating PFG's expected earnings growth is more favorable [5]. - PFG's P/B ratio is 1.61, whereas PUK's P/B ratio is 1.97, suggesting PFG is more undervalued relative to its book value [6]. Earnings Estimates - PFG currently holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while PUK has a Zacks Rank of 3 (Hold) [3][6]. - The stronger estimate revision activity for PFG suggests a more favorable earnings outlook compared to PUK [7]. Value Grades - PFG has a Value grade of A, while PUK has a Value grade of C, reflecting PFG's superior valuation metrics [6].

Group 1: Company Overview - Principal Financial (PFG) is based in Des Moines and operates in the Finance sector, with a year-to-date share price change of 5.28% [3] - The company currently pays a dividend of $0.78 per share, resulting in a dividend yield of 3.83%, which is significantly higher than the Insurance - Multi line industry's yield of 1.65% and the S&P 500's yield of 1.54% [3] Group 2: Dividend Performance - The current annualized dividend of Principal Financial is $3.12, reflecting a 9.5% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 5.97% [4] - The current payout ratio is 40%, indicating that the company pays out 40% of its trailing 12-month earnings per share as dividends [4] Group 3: Earnings Growth and Future Outlook - For the fiscal year, Principal Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $8.28 per share, representing an expected increase of 18.79% from the previous year [5] - The attractiveness of dividends is highlighted by their potential tax advantages and the ability to reduce overall portfolio risk, which can enhance stock investing profits [5] Group 4: Investment Opportunity - Principal Financial is positioned as a compelling investment opportunity, offering an attractive dividend and holding a strong Zacks Rank of 2 (Buy) [6]

Company Overview - Principal Financial Group, Inc. (PFG) is based in Des Moines, Iowa, and offers retirement, asset management, and insurance products and services, with a market cap of $18 billion [1] - The company provides a diverse portfolio including pension plans, annuities, mutual funds, asset management, life insurance, and specialty benefits, which helps clients save, invest, protect, and retire [1][2] Market Position - PFG is classified as a "large-cap stock" due to its market cap exceeding $10 billion, indicating its size and influence in the asset management industry [2] - The company's diverse offerings contribute to stable, recurring revenue and resilience across market cycles [2] Stock Performance - Currently, PFG is trading 12.1% below its 52-week high of $91.98, reached on October 17, 2024, and has gained 6.7% over the past three months, underperforming the S&P 500 Index's 10.3% return [3] - Over the past 52 weeks, PFG shares have fallen 3.5%, significantly lagging behind the S&P 500's 17.1% increase [4] - Year-to-date, PFG shares are up 4.5%, compared to the S&P 500's 12.2% surge [4] Recent Financial Performance - In Q2, PFG reported an adjusted EPS of $2.16, a 32.5% improvement from the previous year, exceeding consensus estimates of $1.98 [5] - The company's Assets Under Management (AUM) grew by 7.7% year-over-year to $752.7 billion, indicating healthy net inflows [5] - PFG's performance has been outpaced by its competitor, Corebridge Financial, Inc. (CRBG), which saw a 17.4% increase over the past 52 weeks [5] Analyst Sentiment - Analysts maintain a cautious outlook on PFG, with a consensus rating of "Hold" from 15 analysts [6] - The mean price target for PFG is $85.92, suggesting a 6.3% premium to its current price levels [6]

Core Insights - The Principal Financial Group is a global leader in investment management, offering a range of financial products and services including retirement services, insurance solutions, and asset management [1] - Founded in 1879, the company is a member of the FORTUNE 500 and manages $519.3 billion in assets [1] - The Principal serves approximately 19.7 million customers worldwide from various regions including Asia, Australia, Europe, Latin America, and the United States [1] - The company is publicly traded on the New York Stock Exchange under the ticker symbol PFG [1] Company Overview - Principal Financial Group provides diverse financial services through its family of companies, catering to businesses, individuals, and institutional clients [1] - The company offers plan administrative services through Principal Life and distributes its funds via Principal Funds Distributor, Inc. [1] - Insurance products are issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co [1]

Company Overview - Principal Financial (PFG) is based in Des Moines and operates in the Finance sector, with a year-to-date share price change of 3.44% [3] - The company currently pays a dividend of $0.78 per share, resulting in a dividend yield of 3.9%, which is significantly higher than the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.51% [3] Dividend Performance - The current annualized dividend of Principal Financial is $3.12, reflecting a 9.5% increase from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 5.97% [4] - The current payout ratio stands at 40%, indicating that the company distributes 40% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Principal Financial's earnings in 2025 is projected at $8.28 per share, with an expected increase of 18.79% compared to the previous year [5] - Future dividend growth is anticipated to be influenced by earnings growth and the payout ratio [4] Investment Considerations - Principal Financial is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a solid dividend option, particularly appealing to income investors [6]

Core Insights - The Principal Financial Group is a global leader in investment management, offering a variety of financial products and services including retirement services, insurance solutions, and asset management [1] - Founded in 1879, the company is a member of the FORTUNE 500 and manages $519.3 billion in assets [1] - The Principal serves approximately 19.7 million customers worldwide from offices located in Asia, Australia, Europe, Latin America, and the United States [1] - The company is publicly traded on the New York Stock Exchange under the ticker symbol PFG [1] Company Overview - Principal Financial Group provides a diverse range of financial products and services to businesses, individuals, and institutional clients [1] - The company includes various financial services companies under its umbrella, focusing on retirement, asset management, and insurance [1] - Insurance products are issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co [1] Additional Information - Plan administrative services are offered by Principal Life [1] - Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. [1] - Securities are offered through Princor Financial Services Corp., which is a member of SIPC and/or independent broker/dealers [1]

Group Benefits and Life Insurance Business - The group benefits business at Principal is uniquely focused on small to midsized businesses (SMBs), which is a key differentiator compared to broader market competitors [1] - SMBs are defined as businesses with 2 to approximately 500 employees, indicating a targeted market segment for Principal's offerings [2]