WEBULL
WebtradeDownload

Principal Financial Group (PFG) Posted Strong Q3 Results, Is The Stock Now Expensive?

Simply Wall St · 2d ago

Principal Financial Group’s latest earnings and dividend move

Principal Financial Group (PFG) reported third quarter revenue of US$4,616.4 million and net income of US$631.9 million, along with a higher quarterly dividend of US$0.85 per share for common shareholders.

The jump in third quarter figures and the dividend increase came alongside strong share price momentum, with Principal Financial Group’s share price return of 31.19% year to date and a 1-year total shareholder return of 49.52%. This signals that investors have been rewarding the story, while recent price gains have moderated in the last quarter.

Scan the wider insurance space by reviewing the 31 resilient stocks with low risk scores, which combines resilient balance sheets with more measured price moves than Principal Financial Group’s recent run.

Bulls point to Principal Financial Group’s strong quarterly numbers and rising dividend, while bears focus on the rapid share price run. Which story does the current valuation actually support next?

Most Popular Narrative: 6% Overvalued

On Simply Wall St's most followed narrative, Principal Financial Group screens as modestly expensive, with a fair value of $111.17 against a last close of $117.31, so the recent share price strength now leans ahead of that framework.

The view that Principal Financial Group is fairly valued and bullish implies the current share price already reflects consistent delivery on margins, ROE in the 15% to 17% range, and sizable capital returns, with limited room for disappointment on execution or market conditions.

Portfolio reshaping through the sale of the Chile annuity business, the completed transition of Hong Kong pensions, and capability oriented deals such as Beam Benefits and the dental network is concentrating Principal Financial Group on fee based, scalable platforms that can support margins and long term revenue growth.

See why 7 investors see Principal Financial Group as 6% overvalued.

Result: Fair Value of $111.17 (OVERVALUED)

Still, the bullish Principal Financial Group narrative could be tested if fee pressure persists in asset management or if active equity outflows continue to drag on revenue.

Find out about the key risks to this Principal Financial Group narrative.

Another View: Principal Financial Group Through The P/E Lens

On a plain P/E check, Principal Financial Group looks inexpensive next to direct peers yet a touch rich versus the wider US Insurance group. PFG trades on 12.6x earnings compared with a peer average near 48.4x, while the sector sits closer to 11.8x and a fair ratio implies about 12.4x.

The gap between the current 12.6x and that fair ratio is small, which keeps valuation risk finely balanced. The much lower multiple than close peers could point to opportunity if those comparisons hold, or signal that the market is already baking in business specific constraints. Which side of that trade off do you think fits your thesis on PFG next?

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:PFG P/E Ratio as at Nov 2026
NasdaqGS:PFG P/E Ratio as at Nov 2026

Next Steps

Plenty in this Principal Financial Group story points to optimism; however, every investor will weigh the trade off differently. Put the figures side by side with your own expectations, then pressure test that view against the 4 key rewards.

Looking for more Principal Financial Group style investment ideas?

Once you have a view on Principal Financial Group, do not stop there. Use the Simply Wall St Screener to surface other opportunities that could fit your portfolio.