# Principal Financial Group (PFG.US)

Canonical: https://gigainvestors.com/s/PFG

Analysis as of: 2026-10-16T07:31:08.858Z. Financial observations: FY2000–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $108.96 per share; close as of 2026-10-15.

Estimated value: low $110.45 per share, central $122.49 per share, high $138.52 per share. Buy at or below the central value $122.49 per share. Valuation as of 2026-10-16T07:31:08.858Z; scenarios are not confidence intervals.

Expected annual return: 11.1% at the stated quote. About 11.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.54×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.13×

- FY2019: 0.10×

- FY2020: 0.11×

- FY2021: 0.13×

- FY2022: 0.34×

- FY2023: 0.05×

- FY2024: 0.12×

- FY2025: 0.09×

- LTM to Jun 2026: 0.12×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.0%

- ROIC, second-lowest year: 6.8%

- Typical minus recent gross margin: -0.8 pp

- Typical gross margin (annual median): 44.4%

- Recent gross margin (lower of latest and 3-year median): 45.2%

- Years with nonpositive capital: 10

- Capital spending / revenue: 0.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 10.2%

- FY2017: 14.0%

- FY2018: 10.6%

- FY2019: 7.8%

- FY2020: 6.8%

- FY2021: 7.8%

- FY2022: 13.8%

- FY2023: 4.5%

- FY2024: 10.5%

- FY2025: 7.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.09×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $11B

- Net income, five-year total: $9.7B

- Return on incremental invested capital: 0.1%

- Working capital / revenue, annual change: 32.5 pp

- Working capital / revenue, change between three-year averages: 237.7 pp

- Working capital / revenue, final three-year average: -105.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.04×

- FY2023: 1.27×

- FY2024: 1.12×

- FY2025: 1.13×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 10.6% vs 7.9%

- Per-share earnings: 4.50 to 5.25 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.7%

- Ordinary dilution, 5-year annual growth: -4.0%

- Market cap gain: $2.5B

- Cumulative retained earnings: $10B

- Diluted shares, 10-year annual growth: -2.7%

- Diluted shares, 5-year annual growth: -4.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.0%

- Per-share value change: $0.75

- Per-share value, starting three-year median: $4.50

- Per-share value, ending three-year median: $5.25

- Buybacks concentrated in cheaper years (correlation): 0.24

- Average buyback yield: 4.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $4.7B

- Cumulative net income, 10 years: $18B

- ROIC, first three-year median: 10.6%

- ROIC, last three-year median: 7.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.50

- FY2017: $7.88

- FY2018: $5.35

- FY2019: $4.96

- FY2020: $5.05

- FY2021: $5.79

- FY2022: $18.63

- FY2023: $2.55

- FY2024: $6.68

- FY2025: $5.25

### accounting: pass

- Sloan accruals: -1.0%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.83×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.58×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: -0.7%

- FY2018: -1.5%

- FY2019: -1.4%

- FY2020: -0.7%

- FY2021: -0.5%

- FY2022: 0.5%

- FY2023: -1.0%

- FY2024: -1.0%

- FY2025: -1.0%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 0.9% a year for ten years · sales +0.4%

Story as of 2026-10-16T09:59:23.377Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.9% a year for ten years

- 2026-07-28: PFG Q2 Earnings Beat on Solid Underwriting, Revenues Rise Y/Y ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pfg-q2-earnings-beat-solid-155700487.html))

### Sales · FY2025–2026

sales +0.4%; source https://www.sec.gov/Archives/edgar/data/1126328/000110465926017031/pfg-20251231x10k.htm; observed 2026-02-18.

- FY2017: $14B 

- FY2018: $14B 

- FY2019: $16B 

- FY2020: $15B 

- FY2021: $14B 

- FY2022: $18B 

- FY2023: $14B 

- FY2024: $16B 

- FY2025: $16B 

- FY2026: $16B 

### Gross margin · FY2025

gross margin 45.2%; source https://www.sec.gov/Archives/edgar/data/1126328/000110465926017031/pfg-20251231x10k.htm; observed 2026-02-18.

- FY2016: 44.2% 

- FY2017: 44.5% 

- FY2018: 42.5% 

- FY2019: 38.9% 

- FY2020: 43.8% 

- FY2021: 49.0% 

- FY2022: 63.0% 

- FY2023: 43.2% 

- FY2024: 45.6% 

- FY2025: 45.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are USD 15.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1126328/000110465926017031/pfg-20251231x10k.htm#000110465926017031 (filed 2026-02-18); FY2025: revenue 15625500000; grossProfit 7061000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PFG.US: 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. The Retirement and Income Solutions segment provides retirement, and related financial products and services. This segment offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, registered index-linked annuities, and bank products, as well as trust and custody services. The Principal Asset Management segment provides equity, fixed income, real estate, and other alternative investments, as well as fund offerings. This segment also offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans. The Benefits and Protection segment provides specialty benefits, such as specialty benefits group dental and vision insurance, group life and other insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products. This segment serves insurance solutions for small and medium-sized businesses and their owners, as well as employees. The company was founded in 1879 and is based in Des Moines, Iowa.

### Why customers stay

Margins ranged from 43.2% to 45.6% during 2023–25; it earns 9% on its capital.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2023-12-31 (filed 2026-02-18); FY2023: grossProfit / revenue = 43.2%.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2024-12-31 (filed 2026-02-18); FY2024: grossProfit / revenue = 45.6%.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2025-12-31 (filed 2026-02-18); FY2025: grossProfit / revenue = 45.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2016,0.10159350660976993],[2017,0.14017377016530572],[2018,0.10574783052577846],[2019,0.0782900978558456],[2020,0.06827480069589156],[2021,0.07836469687263689],[2022,0.13778555140068813],[2023,0.04494902066004829],[2024,0.10516374453746115],[2025,0.07927187316500293]]; median 0.09043268988738642. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.4% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2016-12-31 (filed 2026-02-18); FY2016: growth capex 0; upkeep 154900000; owner earnings 1348200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2017-12-31 (filed 2026-02-18); FY2017: growth capex 0; upkeep 164800000; owner earnings 2341300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2018-12-31 (filed 2026-02-18); FY2018: growth capex 0; upkeep 92300000; owner earnings 1659300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2019-12-31 (filed 2026-02-18); FY2019: growth capex 0; upkeep 132400000; owner earnings 1488600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2020-12-31 (filed 2026-02-18); FY2020: growth capex 0; upkeep 108800000; owner earnings 1538900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2021-12-31 (filed 2026-02-18); FY2021: growth capex 0; upkeep 129900000; owner earnings 1725600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2022-12-31 (filed 2026-02-18); FY2022: growth capex 0; upkeep 116300000; cash acquisitions 0; owner earnings 4936500000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2023-12-31 (filed 2026-02-18); FY2023: growth capex 0; upkeep 102000000; cash acquisitions 0; owner earnings 793900000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2024-12-31 (filed 2026-02-18); FY2024: growth capex 0; upkeep 68800000; cash acquisitions 27100000; owner earnings 1758400000. Growth capex plus acquisitions / owner earnings = 0.015411737943585078.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2025-12-31 (filed 2026-02-18); FY2025: growth capex 0; upkeep 98000000; cash acquisitions 5600000; owner earnings 1338500000. Growth capex plus acquisitions / owner earnings = 0.004183787822189018.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,464900000],[2017,540000000],[2018,598600000],[2019,606000000],[2020,614500000],[2021,654100000],[2022,642300000],[2023,625500000],[2024,658400000],[2025,684000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/PFG.US.json#2025-12-31 (filed 2026-02-18); FY2025: cash repurchases 902700000 USD.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PFG.US SharesStats.PercentInsiders = 1.121 percentage points; cache date 2026-10-16.

### What could break it

"We may need to fund deficiencies in our Closed Block assets." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1126328/000110465926017031/pfg-20251231x10k.htm (filed 2026-02-18); We may need to fund deficiencies in our Closed Block assets.

### What the price says

The price assumes cash profits shrink 0.9% yearly over ten years; actual growth was 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate -0.025987361114573726. Price 108.96; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.330872483221476 → FY2025 5.930438635356668. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $54.60 per share

- 2016-11: $57.69 per share

- 2016-12: $57.86 per share

- 2017-01: $57.09 per share

- 2017-02: $62.54 per share

- 2017-03: $63.11 per share

- 2017-04: $65.13 per share

- 2017-05: $62.91 per share

- 2017-06: $64.07 per share

- 2017-07: $66.75 per share

- 2017-08: $62.52 per share

- 2017-09: $64.34 per share

- 2017-10: $65.85 per share

- 2017-11: $70.79 per share

- 2017-12: $70.56 per share

- 2018-01: $67.60 per share

- 2018-02: $62.33 per share

- 2018-03: $60.91 per share

- 2018-04: $59.22 per share

- 2018-05: $55.80 per share

- 2018-06: $52.95 per share

- 2018-07: $58.08 per share

- 2018-08: $55.19 per share

- 2018-09: $58.59 per share

- 2018-10: $47.07 per share

- 2018-11: $49.32 per share

- 2018-12: $44.17 per share

- 2019-01: $50.07 per share

- 2019-02: $52.64 per share

- 2019-03: $50.19 per share

- 2019-04: $57.16 per share

- 2019-05: $51.57 per share

- 2019-06: $57.92 per share

- 2019-07: $58.04 per share

- 2019-08: $53.22 per share

- 2019-09: $57.14 per share

- 2019-10: $53.38 per share

- 2019-11: $55.10 per share

- 2019-12: $55.00 per share

- 2020-01: $52.95 per share

- 2020-02: $44.39 per share

- 2020-03: $31.34 per share

- 2020-04: $36.41 per share

- 2020-05: $38.62 per share

- 2020-06: $41.54 per share

- 2020-07: $42.43 per share

- 2020-08: $42.11 per share

- 2020-09: $40.27 per share

- 2020-10: $39.22 per share

- 2020-11: $49.79 per share

- 2020-12: $49.61 per share

- 2021-01: $49.27 per share

- 2021-02: $56.58 per share

- 2021-03: $59.96 per share

- 2021-04: $63.87 per share

- 2021-05: $65.39 per share

- 2021-06: $63.19 per share

- 2021-07: $62.13 per share

- 2021-08: $66.81 per share

- 2021-09: $64.40 per share

- 2021-10: $67.09 per share

- 2021-11: $68.58 per share

- 2021-12: $72.33 per share

- 2022-01: $73.06 per share

- 2022-02: $70.64 per share

- 2022-03: $73.41 per share

- 2022-04: $68.14 per share

- 2022-05: $72.93 per share

- 2022-06: $66.79 per share

- 2022-07: $66.94 per share

- 2022-08: $74.76 per share

- 2022-09: $72.15 per share

- 2022-10: $88.13 per share

- 2022-11: $89.68 per share

- 2022-12: $83.92 per share

- 2023-01: $92.55 per share

- 2023-02: $89.56 per share

- 2023-03: $74.32 per share

- 2023-04: $74.69 per share

- 2023-05: $65.46 per share

- 2023-06: $75.84 per share

- 2023-07: $79.87 per share

- 2023-08: $77.71 per share

- 2023-09: $72.07 per share

- 2023-10: $67.68 per share

- 2023-11: $73.83 per share

- 2023-12: $78.67 per share

- 2024-01: $79.10 per share

- 2024-02: $80.86 per share

- 2024-03: $86.31 per share

- 2024-04: $79.14 per share

- 2024-05: $82.04 per share

- 2024-06: $78.45 per share

- 2024-07: $81.51 per share

- 2024-08: $81.42 per share

- 2024-09: $85.90 per share

- 2024-10: $82.40 per share

- 2024-11: $87.09 per share

- 2024-12: $77.41 per share

- 2025-01: $82.45 per share

- 2025-02: $89.04 per share

- 2025-03: $84.37 per share

- 2025-04: $74.15 per share

- 2025-05: $77.89 per share

- 2025-06: $79.43 per share

- 2025-07: $77.83 per share

- 2025-08: $80.51 per share

- 2025-09: $82.91 per share

- 2025-10: $84.04 per share

- 2025-11: $84.82 per share

- 2025-12: $88.21 per share

- 2026-01: $94.72 per share

- 2026-02: $95.42 per share

- 2026-03: $90.11 per share

- 2026-04: $100.91 per share

- 2026-05: $103.62 per share

- 2026-06: $107.78 per share

- 2026-07: $113.70 per share

- 2026-08: $110.16 per share

- 2026-09: $111.96 per share

- 2026-10: $108.96 per share

## Annual estimated value (USD per share)

- FY2016: low $50.18 per share, central $57.10 per share, high $66.31 per share

- FY2017: low $57.17 per share, central $65.05 per share, high $75.54 per share

- FY2018: low $278.02 per share, central $286.37 per share, high $297.48 per share

- FY2019: low $325.93 per share, central $335.39 per share, high $347.99 per share

- FY2020: low $357.17 per share, central $365.90 per share, high $377.54 per share

- FY2021: low $362.77 per share, central $372.05 per share, high $384.42 per share

- FY2022: low $87.50 per share, central $99.57 per share, high $115.63 per share

- FY2023: low $350.37 per share, central $359.16 per share, high $370.86 per share

- FY2024: low $393.67 per share, central $412.59 per share, high $430.13 per share

- FY2025: low $229.51 per share, central $240.88 per share, high $256.03 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:53.402Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1126328/000110465926017031/pfg-20251231x10k.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.