Principal Financial Group (PFG)
NASDAQFinancialsAsset ManagementSnapshot 2026-09-04
$116.68-1.54%
Close 2026-09-04 · 1-day change
NASDAQFinancialsAsset ManagementSnapshot 2026-09-04
Intact: The reason to own it still holds.
Principal Financial Group aims for 9-12% EPS growth in 2026. The company targets a strong return on equity of 15-17%. It plans to deploy $1.5-$1.8 billion in capital this year. The stock trades at a reasonable PE of 13.17 with a solid free cash flow yield of 15%.
EPS growth may lag as recent Q1 EPS missed estimates by 28%. Capital deployment progress is limited despite debt issuance. ROE targets lack clear evidence of achievement.
The market prices in about 10% revenue growth and values the stock near our fair value of $112.69. Our view aligns with consensus, expecting moderate growth but limited upside beyond current estimates.
Breaks if: Capital deployment falls below $1.3 billion in FY26
Breaks if: EPS growth falls below 6% YoY in FY26
Breaks if: ROE falls below 13% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
PFG represents a durable compounder with a focus on consistent earnings growth. The current thesis state is insufficient due to limited recent financial performance history, despite a recent earnings beat.
The market appears to price PFG at a premium compared to peers, reflecting a durable premium. However, there is an expectations gap, indicating that the market may be anticipating slightly lower performance than what PFG has historically delivered.
Management has set clear priorities for growth, including achieving 9-12% annual non-GAAP operating EPS growth. While recent results show progress, there is mixed progress on maintaining ROE targets, and there is a low probability of missing earnings expectations in the near term.
The long-term thesis hinges on the performance of sector bellwethers like BLK, BX, and KKR. If these companies continue to perform well, it could support PFG's growth. Conversely, any negative guidance from these peers could impact PFG's trajectory.
The most important moves since the prior daily snapshot.
Valuation fell by 19.5 points (from 52.4 to 32.9).
Yes, our read has strengthened. The latest earnings beat supports the goal of 9-12% annual non-GAAP operating EPS growth. The acquisition of Beam Benefits enhances service offerings and aligns with growth strategy.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Overall, PFG's fundamentals are strong, but its growth is closely tied to sector performance. Not investment advice.