Prudential plc (PRU.L) stock analysis

In our weekly check, Prudential plc is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 4.

About Prudential plc

Prudential plc is a Financial Services company (Insurance - Life) based in Hong Kong, listed on LSE as PRU.L.

What our checks show for PRU.L

Red flags

• Analysts expect revenue to shrink about 19% a year.
• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.3 years.
• Return on capital (ROCE) is only 2%.

Warning signs

• Operating cash flow is only 0.57x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 8.4% a year.

Strengths

• The net margin rose by 22 points over 5 years, to 14.3%.
• The gross margin is 70.3% and has risen by 40.9 points: pricing power is holding.
• Analysts expect the net margin to improve by 5.8 points from today's 14.3%.
• Revenue grew 48% a year over the last 3 years.
• Earnings per share grew 60.9% a year over the last 3 years.
• The dividend takes 15% of profit: there is a cushion.

Similar companies

UNM · GL · SDLF.L · JXN · VOYA · PRI

Questions

What grade does Prudential plc (PRU.L) have?

In our weekly check, Prudential plc is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of PRU.L stock?

This week's biggest flags for Prudential plc: Weak revenue forecast, Deep past fall, Slow recovery after falls. In total 6 of 24 checks show a warning or a red flag.

What does Prudential plc do?

Prudential plc is a Financial Services company (Insurance - Life) based in Hong Kong, listed on LSE as PRU.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis