MeritValue

PRINCIPAL FINANCIAL GROUP INC

PFGdata completeness 88%19 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'interestExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

PRINCIPAL FINANCIAL GROUP INC earns about 17% on equity, and has bought back 17% of its shares over 5 years. The applicable estimate puts fair value near $72.13 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$14.4B1$17.5B2$13.7B3$16.1B3$15.6B3
Net income$1.58B4$4.76B5$623.2M6$1.57B6$1.19B6
Operating cash flow$3.25B7$3.17B8$3.79B9$4.6B9$4.54B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$4.36B10$4.08B11$3.99B12$4.11B13$3.95B13
Cash & equivalents$2.33B14$4.85B15$4.71B16$4.21B17$4.43B17
Diluted shares272.9M255.3M244.6M235.3M225.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$526.54
your share of equity
Profit it earned you last year
$52.51
Free cash flow it threw off
—
Debt you’d be carrying
$175.19

10 shares is a claim on $526.54 of net worth that earned you $52.51 last year, against $175.19 of debt.

iii. Is this a good business?
Moat signal · return on equity
17% avg · 5y
FY21 10%FY22 48%FY23 6%FY24 14%FY25 10%

It earned an average 17% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−17% shares · 5y

Share count is down 17% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$72.13
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.57B
  • growthAssumed0.0%
Graham Number
$78.87
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001104659-24-025516 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001410578-25-000160 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-017031 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001104659-24-025516 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001410578-25-000160 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-017031 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001104659-24-025516 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001410578-25-000160 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001104659-26-017031 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001104659-23-022860 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001104659-24-025516 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001410578-25-000160 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001104659-26-017031 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0001104659-23-022860 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0001104659-24-025516 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0001410578-25-000160 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001104659-26-017031 (CashAndCashEquivalentsAtCarryingValue)