Principal Financial Group, Inc.
- Open
- 114.00
- Day high
- 114.90
- Day low
- 112.80
- Prev close
- 113.61
- Volume
- 1.1M
- Mkt cap
- $24.1B
- P/E (TTM)
- 15.9
- EPS (TTM)
- $7.09
- P/B
- 2.0
- P/S
- 1.6
- Yield
- 2.86%
- Per share
- $3.19
- ▼Insiders net selling -$2.9M over the last 3 months (0 open-market buys, 7 sales)
- 🏛Institutions accumulating (13F)
Principal Financial Group, Inc. (PFG) is a Financial Services company listed on NASDAQ. The stock is up 37% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 7 sales (SEC Form 4).
Principal Financial Group, Inc. (PFG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PFG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 24, 2026 | $2.01 | $2.07 | +3.0% | $3.5B | -14.6% |
| Apr 24, 2025 | $1.82 | $1.81 | -0.5% | $3.7B | -7.7% |
| Feb 6, 2025 | $1.93 | $1.94 | +0.5% | $4.8B | +15.4% |
| Oct 24, 2024 | $1.99 | $1.76 | -11.6% | $3.0B | -23.1% |
| Jul 25, 2024 | $1.84 | $1.63 | -11.4% | $4.3B | +13.6% |
| Apr 25, 2024 | $1.73 | $1.65 | -4.6% | $4.1B | +10.3% |
| Oct 26, 2023 | $1.65 | $1.72 | +4.2% | $4.6B | +27.6% |
| Jul 27, 2023 | $1.65 | $1.53 | -7.3% | $3.6B | +2.2% |
| Apr 27, 2023 | $1.54 | $1.48 | -3.9% | $2.8B | -16.3% |
| Jan 30, 2023 | $1.52 | $1.70 | +11.8% | $3.1B | -6.6% |
| Oct 27, 2022 | $1.45 | $1.69 | +16.6% | $4.6B | +45.6% |
| Apr 28, 2022 | $1.56 | $1.63 | +4.5% | $3.1B | -12.4% |
PFG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | STRABLE-SOETHOUT DEANNA Dofficer: Chair, President and CEO | Grant | 44 | — |
| Jun 30, 2026 | Auerbach Jonathandirector | Grant | 166 | — |
| Jun 30, 2026 | Cheong Wee Yeeofficer: President - Asia & Middle East | Grant | 368 | — |
| Jun 30, 2026 | Pitz Joelofficer: EVP & CFO | Grant | 234 | — |
| Jun 30, 2026 | Bhatia Kamalofficer: President and CEO - PAM | Grant | 430 | — |
| Jun 30, 2026 | Mills Scottdirector | Grant | 152 | — |
| Jun 30, 2026 | RIVERA ALFREDOdirector | Grant | 117 | — |
| Jun 30, 2026 | Kay Kathleen Bofficer: EVP-Chief Information Officer | Grant | 398 | — |
| Jun 30, 2026 | McCullum Kenneth A.officer: EVP - Chief Risk Officer | Grant | 73 | — |
| Jun 30, 2026 | STRABLE-SOETHOUT DEANNA Dofficer: Chair, President and CEO | Grant | 612 | — |
| Jun 30, 2026 | Mills Scottdirector | Grant | 253 | — |
| Jun 30, 2026 | Mitchell H Elizabethdirector | Grant | 80 | — |
| Jun 30, 2026 | Beams Mary E.director | Grant | 109 | — |
| Jun 30, 2026 | Carter Miller Jocelyndirector | Grant | 669 | — |
| Jun 30, 2026 | HOCHSCHILD ROGER Cdirector | Grant | 219 | — |
Source: PFG SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full PFG insider & 13F page →Principal Financial Group, Inc. company profile
Overview
Principal Financial Group, Inc. (NASDAQ:PFG) is a diversified financial services company founded in 1879 and headquartered in Des Moines, Iowa. The company went public in 2001 and has evolved from its origins as a mutual insurance company into a global provider of retirement, asset management, and insurance solutions. Principal serves businesses, individuals, and institutional clients worldwide, operating through four main business segments with approximately $718 billion in assets under management as of 2025.
Business
Principal Financial Group operates in the financial services industry, specifically focusing on retirement services, asset management, and insurance products. The company's business is organized into four primary segments: Retirement and Income Solutions (RIS) represents the largest segment, providing comprehensive retirement plan services primarily to small and medium-sized businesses. This division offers 401(k) and 403(b) defined contribution plans, defined benefit pension plans, individual retirement accounts (IRAs), and pension risk transfer services. Pension risk transfer involves taking on the pension obligations of corporations that want to remove these liabilities from their balance sheets. The segment also provides recordkeeping, administration, and investment management services for retirement plans. This business generates approximately 40-45% of the company's total revenue. Principal Global Investors (Asset Management) operates as an institutional investment manager, providing equity, fixed income, real estate, and alternative investment strategies to pension funds, insurance companies, and other institutional clients globally. The division manages assets across public and private markets, including specialized areas like private credit, infrastructure debt, and real estate funds. This segment contributes roughly 25-30% of total company revenue. Principal International focuses on pension and asset management services in emerging markets, particularly in Latin America (Brazil, Chile, Mexico) and Asia (China, Hong Kong, India, Southeast Asia). This division offers pension accumulation products, mutual funds, and life insurance in these international markets, representing about 15-20% of total revenue. U.S. Insurance Solutions provides specialty employee benefits including group dental, vision, life, and disability insurance, primarily targeting small and medium-sized businesses. The segment also offers individual life insurance products including universal, variable universal, and term life policies. This division accounts for approximately 15-20% of company revenue.
Revenue model
Principal Financial Group generates revenue through multiple complementary business models across its diversified platform. The company primarily makes money through asset-based fees, where it charges a percentage of assets under management and administration. In the retirement business, Principal earns fees based on participant account balances in 401(k) plans, typically ranging from 0.50% to 1.50% annually depending on plan size and services provided. The asset management division generates revenue through management fees charged to institutional clients, typically ranging from 0.30% to 2.00% of assets under management depending on the investment strategy complexity. Performance fees provide additional upside when investment returns exceed benchmarks. The company also earns transaction-based revenue from pension risk transfer deals, where it receives substantial upfront premiums when taking on corporate pension obligations. Insurance premiums represent another significant revenue stream, particularly from specialty benefits like dental, vision, and disability insurance where Principal collects monthly premiums from employer groups. The life insurance business generates revenue through premium collections and investment spreads on policy reserves. Several factors influence Principal's profitability margins. Market performance significantly impacts fee revenue since most fees are asset-based - rising markets increase assets under management while falling markets reduce fee income. Interest rate environments affect investment spreads and the attractiveness of pension risk transfer deals. Competition in the retirement services market, particularly from larger players like Fidelity and Vanguard, can pressure fee rates. Regulatory changes around fiduciary standards and fee disclosure requirements can impact pricing power. Scale economies benefit Principal as larger plans generate higher margins due to fixed cost absorption, while participant behavior such as withdrawal rates and job market mobility affects asset retention and growth.
Competitive moat
Principal Financial Group possesses a moderate competitive moat built primarily around its dominant position in the small and medium-sized business (SMB) retirement market. The company has established strong relationships with benefits brokers and consultants who serve as key distribution channels for SMB clients. These relationships create switching costs and provide Principal with consistent deal flow that larger competitors often overlook due to the smaller transaction sizes. The company's integrated platform approach creates some customer stickiness, as businesses that use Principal for retirement plans often add other services like dental, vision, and life insurance. This multi-product relationship increases switching costs and improves client retention. Principal's expertise in pension risk transfer also represents a specialized capability that requires significant capital, actuarial expertise, and regulatory approvals that create barriers to entry. However, Principal faces meaningful competitive threats that limit the strength of its moat. Large-scale competitors like Fidelity, Vanguard, and Empower continue to gain market share through aggressive pricing and superior technology platforms. These players can offer lower fees due to their massive scale advantages. Fintech disruptors are also entering the retirement space with more user-friendly digital experiences and automated services that appeal to younger participants. The asset management business faces intense fee pressure as institutional clients increasingly favor passive strategies and negotiate lower fees. Principal's international operations, while providing geographic diversification, operate in markets with regulatory uncertainty and currency risks that can impact long-term returns. Overall, while Principal has carved out a defensible niche in SMB retirement services, the moat is not exceptionally wide and requires continuous investment in technology and service capabilities to maintain competitive positioning.
Risks & safety
Principal Financial Group demonstrates strong financial stability with adequate liquidity and manageable debt levels, though insurance industry characteristics create unique balance sheet considerations. • Liquidity Position: $3.9 billion in cash and short-term investments as of Q1 2025, providing substantial liquidity buffer. Strong free cash flow generation of $961 million in Q1 2025 supports ongoing operations and capital returns. • Debt and Solvency: Debt-to-equity ratio of 0.39 is reasonable for an insurance company. Risk-based capital (RBC) ratio maintained at 375-400% target range, well above regulatory minimums. No immediate solvency concerns given diversified revenue streams and capital generation. • Valuation Metrics: Trading at P/E ratio of 98.7x based on Q1 2025 earnings, though this appears elevated due to quarterly volatility. Full-year 2024 P/E of 11.1x appears more reasonable. Price-to-book ratio of 1.69x reflects modest premium to book value. • Other Considerations: Large asset base of $313 billion creates asset-liability matching requirements typical of insurance companies. Current ratio of 0.21 appears low but is normal for insurance operations where current liabilities include policy reserves. Strong operational cash flow generation provides confidence in meeting obligations.
Recent development
Over the past few years, Principal has executed several strategic initiatives to enhance its competitive position and drive growth. The company has significantly expanded its pension risk transfer capabilities, completing over $3 billion in PRT sales in 2024, making it a major player in helping corporations transfer pension obligations. This represents a key growth driver as more companies seek to derisk their balance sheets. In asset management, Principal has built out its private markets capabilities, launching a private credit business that deployed $2.5 billion in capital and establishing private infrastructure debt capabilities. The company raised over $3.6 billion for its real estate fund across 11 countries and launched a private credit REIT fund to capitalize on growing institutional demand for alternative investments. The company has made strategic acquisitions to strengthen its retirement ecosystem, including the purchase of Ascensus' ESOP business, making Principal the number one employee stock ownership plan provider. This acquisition enhances its ability to serve the complete spectrum of retirement plan needs for small and medium-sized businesses. Technology and digital transformation initiatives have focused on improving participant experiences and operational efficiency. Principal has enhanced its target date fund offerings and expanded its investment management capabilities to better compete for institutional mandates. The company has also been realigning its organizational structure, combining certain asset management functions to improve coordination between domestic and international operations. International expansion continues with growing presence in Asia and Latin America, though the company remains focused on markets where it can achieve meaningful scale. Recent regulatory developments, particularly pension reform in Chile, are viewed positively as they reinforce the defined contribution system where Principal has expertise.
PFG company profile · for informational purposes only — not investment advice.
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