PRINCIPAL FINANCIAL GROUP INC

PFG

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.

Country: United StatesPrice: $113.98Market Cap: $24.4B

Company Profile

Industry: Insurance
SIC Sector: Insurance Carriers
Size: Large Cap($24.4B)
Revenue: $15.6B-3.1% YoY
Net Income: $1.2B-24.6% YoY

Financial Snapshot

Operating Margin--
Return on Equity10.0%
Debt / Equity0.33
Current Ratio--
EPS (Diluted)$5.25−21.4%
Buybacks (1y)$902.7M
Buybacks (2y)$1.9B
Shares Retired3.9% / 8.1% 2y

Similar Companies

UNHUNITEDHEALTH GROUP INC
$360.6B
PGRPROGRESSIVE CORP/OH/
$121.9B
ELVElevance Health, Inc.
$86.8B
CICigna Group
$74.7B

Shareholder Return

Fiscal 2025

Retired 3.9% of shares last year, 8.1% over two.

Buybacks
$902.7M
Dividends
$684.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
221.8% = 201.0% + 6.9%
FY23
−86.3% = −86.9% + 4.5%
FY24
162.0% = 152.1% + 3.9%
FY25
−21.4% = −24.6% + 4.2%
Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$24.4B$17.8Best.$17.2Best.$20.0Best.$16.4Best.
Revenue$15.6B↓3%$16.1B↑18%$13.7B↓22%$17.5B↑22%$14.4B
Operating Income----------
Net Income$1.2B↓25%$1.6B↑152%$623.2M↓87%$4.8B↑201%$1.6B
EPS (Diluted)$5.25↓21%$6.68↑162%$2.55↓86%$18.63↑222%$5.79
Gross Margin—————
Operating Margin—————
ROE10.0%↓30%14.2%↑148%5.7%↓88%47.7%↑385%9.8%
Total Debt$3.9B↓1%$4.0B↑1%$3.9B↓2%$4.0B↓7%$4.3B
Shareholders' Equity$11.9B↑7%$11.1B↑2%$10.9B↑9%$10.0B↓38%$16.1B
Current Ratio—————
Debt / Equity0.33↓7%0.36↓1%0.36↓10%0.40↑50%0.27
Operating Cash Flow$4.5B↓1%$4.6B↑21%$3.8B↑20%$3.2B↓3%$3.3B
Free Cash Flow----------
Scored from 10-K1d ago
MetricMarks

Risk-Aware Value

Akre

Three-Legged Stool

Druckenmiller

Macro-Enhanced Growth

Spier

Value Checklist

Pabrai

Dhandho Framework

Munger

Quality Focus

Ackman

Activist Value

Piotroski

F-Score

Greenblatt

Magic Formula

Lynch

GARP

Buffett

Quality Compounder

Graham

Defensive Value

VerdictHOLDFAILPASSBUYHOLDBUYPASSPASSNot rankedPASSFAILFAIL
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/A
Margin of Safety-14.0%-4.0%+39.5%N/A-122.3%N/AN/A-108.5%N/A-2686.8%N/A-41.8%
Data As Of10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)

Where They Agree

  • Efficiency

    All 6 investors flag PFG's efficiency

    ROIC (high and growing)0/7 years ROIC > 15% (latest: 14.1%)
    ✗AkreROIC > 15% for 3+ years
    Reinvestment Rate x ROIC
    ✗AkreReinvestment Rate * ROIC > 10%
    Return on Invested Capital
    ✗Munger> 15%
    Current Ratio Change YoY
    ✗PiotroskiIncreased YoY
    Show 5 more metrics ▾
    Revenue / Total Assets Change YoY0.05x -> 0.05x
    ✗PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)
    ✗Greenblatt> 25%
    ROIC (3-5 yr avg)8.1%
    ✗Buffett> 10%
    ROIC - WACC-1.9%
    ✗BuffettPositive (WACC = 10%)
    Current Ratio
    ✗Graham>= 2.0

Where They Disagree

  • Profitability

    No clean pass — all 11 investors flag at least one profitability criterion

    Discount to Intrinsic Value-31.8% (IV=$72.40 vs Price=$95.42)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency26/26 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Return on Equity10.0% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    EPS Growth AccelerationLatest: -21.4%, Prior: 162.0%
    ✗DruckenmillerAccelerating EPS growth
    Show 19 more metrics ▾
    Margin of SafetyP/E=18.2x, P/B=1.7x
    ✗SpierP/E < 15 AND P/B < 2.0✗PabraiP/B < 1.5 or P/E < 15
    Operating Income / Revenue
    ✗Ackman>= 15%
    Net Income / Shareholders Equity10.0%
    ✗Ackman>= 15%
    Net Income / Total Assets0.35%
    ✓PiotroskiROA > 0
    ROA Change YoY0.50% -> 0.35% (delta: -0.15%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=1.33%, ROA=0.35%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY
    ✗PiotroskiImproved YoY
    EBIT / Enterprise Value
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=None, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    3-5 Year EPS CAGR0.8%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE10.0%
    ✗Lynch> 15%
    Net Income Positive (10+ years)26/26 years positive
    ✓BuffettPositive every year for 10+ years
    ROE (5-yr avg)17.5%
    ✓Buffett> 15% (5-yr avg)
    Operating Margin (10-yr trend)6.7% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)1.40
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness0.28x
    ✗Buffett$1 retained -> > $1 market value created
    Positive EPS (10 years)25/26 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)-98.6%
    ✗Graham>= 33% growth
  • Debt & Leverage

    3 of 8 pass — Marks, Akre, Lynch +2 more object

    Debt Levels0.33
    ✗AkreDebt/Equity < 0.3✓MungerDebt/Equity < 0.5
    Interest Coverage & Debt/EBITDA
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.33
    ✓Ackman<= 1.0
    LT Debt / Total Assets Change1.26% -> 1.15%
    ✓PiotroskiDecreased YoY
    Show 4 more metrics ▾
    Total Debt / Equity0.33
    ✗Lynch< 0.33
    Cash - Long-term Debt$504.7M
    ✓LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 0.33, IC: N/A
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    LT Debt vs Net Current Assets
    ✗GrahamLT Debt <= Net Current Assets
  • Valuation

    2 of 9 pass — Marks, Spier, Pabrai +4 more object

    P/B or P/E vs. Historical AverageP/E=18.2x, P/B=1.7x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-31.8% (IV=$72.40 vs Price=$95.42)
    ✗Marks>= 20% below intrinsic value
    Price vs. 200-day MAQualitative
    ✓DruckenmillerPrice above 200-day moving average
    Margin of SafetyP/E=18.2x, P/B=1.7x
    ✗SpierP/E < 15 AND P/B < 2.0
    Show 9 more metrics ▾
    P/E or FCF YieldP/E=18.2x
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Valuation ReasonablenessP/E=18.2x, OE Yield=5.7%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share
    ✗Ackman<= 25
    EBIT / Enterprise Value
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=None, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    P/E / EPS Growth Rate23.31
    ✗Lynch< 1.0 (ideally < 0.5)
    Price / 3-yr avg EPS19.8x
    ✗Graham<= 15x
    Price-to-Book Ratio1.7x
    ✗Graham<= 1.5x
    P/E x P/B34.50
    ✗Graham<= 22.5
  • Cash Flow

    1 of 6 pass — Marks, Pabrai, Ackman +2 more object

    FCF Positive
    ✗MarksPositive FCF in majority of recent years
    P/E or FCF YieldP/E=18.2x
    ✗PabraiP/E < 15 or FCF Yield > 10%
    (OCF - CapEx) / Market Cap
    ✗Ackman>= 4%
    Price / FCF per Share
    ✗Ackman<= 25
    Show 4 more metrics ▾
    Operating Cash Flow$4.5B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=1.33%, ROA=0.35%
    ✓PiotroskiCFO/Assets > ROA
    FCF Positive and Growing
    ✗LynchPositive and growing
    Free Cash Flow Proxy
    ✗BuffettPositive and growing
  • Growth

    1 of 5 pass — Druckenmiller, Ackman, Lynch +1 more object

    Positive Net Income Frequency26/26 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    EPS Growth AccelerationLatest: -21.4%, Prior: 162.0%
    ✗DruckenmillerAccelerating EPS growth
    Revenue Growth RateLatest: -3.1%, Prior: 18.0%
    ✗DruckenmillerRevenue growth accelerating
    3yr Median Revenue Growth-3.1%
    ✗Ackman>= 5%
    Show 5 more metrics ▾
    Positive EPS Growth Frequency3/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    P/E / EPS Growth Rate23.31
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR0.8%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    EPS Growth (3-yr avg, 10-yr window)-98.6%
    ✗Graham>= 33% growth
  • Verdicts

    Split decision: 4 PASS · 3 FAIL · 2 HOLD · 2 BUY

    Overall verdict
    •MarksHOLD (5/8)✗AkreFAIL (1/7)✓DruckenmillerPASS (4/7)✓SpierBUY (7/8)•PabraiHOLD (5/8)✓MungerBUY (6/7)✓AckmanPASS (4/9)✓PiotroskiPASS (F-Score 5)•GreenblattNot ranked✓LynchPASS (PEG 23.31)✗BuffettFAIL (3/9)✗GrahamFAIL (2/9)
  • Valuation models

    Models split on PFG at $113.98 — fair values range $4.09–$188.33

    Marks fair value$99.98
    ✗Marks-14.0% margin vs $113.98
    Akre fair value$109.63
    ✗Akre-4.0% margin vs $113.98
    Druckenmiller fair value$188.33
    ✓Druckenmiller+39.5% margin vs $113.98
    Pabrai fair value$51.27
    ✗Pabrai-122.3% margin vs $113.98
    Show 3 more metrics ▾
    Piotroski fair value$54.67
    ✗Piotroski-108.5% margin vs $113.98
    Lynch fair value$4.09
    ✗Lynch-2686.8% margin vs $113.98
    Graham fair value$80.36
    ✗Graham-41.8% margin vs $113.98

Historical Score Timeline

Industry Peers

Similar companies in Insurance

PFG vs Peers — Financial Grading

Revenue$15.6BMedian
Net Income$1.2BMedian
ROE10.0%Bottom 25%
D/E0.33Median
Op. Margin—
Curr. Ratio—
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroski
UNITEDHEALTH GROUP INCUNH$360.6B$401.73$447.6B$12.1B12.0%0.784.2%0.793/96/91/70/3F-Score 7
PROGRESSIVE CORP/OH/PGR$121.9B$209.60$87.7B$11.3B37.3%0.00——3/93/96/70/3F-Score 6
Elevance Health, Inc.ELV$86.8B$400.32$199.1B$5.7B12.9%0.753.6%1.545/95/92/71/3F-Score 6
Cigna GroupCI$74.7B$282.56$274.9B$6.0B14.3%0.013.3%0.851/94/93/71/3F-Score 8
AEGON LTD.AEFC$28.5B$18.36—$1.1B10.4%———0/91/91/70/3F-Score 5
MARKEL GROUP INC.MKL$22.9B$1847.24$15.5B$2.1B11.3%0.2320.6%—4/96/95/71/3F-Score 5
Fidelity National Financial, Inc.FNF$13.3B$49.47$14.4B$602.0M8.1%0.59——2/92/92/70/3F-Score 5
Enact Holdings, Inc.ACT$6.9B$49.94$1.2B$674.2M12.6%0.14——5/91/94/70/3F-Score 5