Principal Financial Group, Inc. cash flow to debt ratio of 114.74% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Principal Financial Group, Inc.'s free cash flow has decreased 2.10% from $4.53B last year to $4.44B, signaling decreasing performance

Principal Financial Group, Inc.'s debt to equity ratio is 0.36, which means that the company's assets are healthy financed, signaling financial stability.

Principal Financial Group, Inc.'s debt has decreased relative to shareholder equity from 0.37 last year to 0.36 today, signaling strengthened financials

Principal Financial Group, Inc. has a net cash position, so leverage is healthy.

Principal Financial Group, Inc.'s interest coverage ratio of 190.32 indicates that earnings with good margin can cover interest payments on company debt

Principal Financial Group, Inc.'s profit margin has increased (1.21%) in the last year from 9.74% to 9.86%, signaling increasing performance

Principal Financial Group, Inc.'s short-term assets of $57.26B exceed its short-term liabilities of $17.84B

Principal Financial Group, Inc.'s return on assets of 0.44% is lower than the 5.00% threshold, indicating inefficient asset utilization

Principal Financial Group, Inc.'s return on equity of 13.03%, is lower than 15.00%, indicating bad performance

Principal Financial Group, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Principal Financial Group, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Principal Financial Group, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Principal Financial Group, Inc. has a free cash flow yield of 18.22%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Principal Financial Group, Inc.'s yearly earnings has decreased 24.56% since last year from $1.57B to $1.19B, signaling decreasing performance

Principal Financial Group, Inc.'s yearly revenue has decreased 98.89% since last year from $16.13B to $178.30M, signaling decreasing performance

ROIC -19.29% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Principal Financial Group, Inc.'s 3-year revenue CAGR of -3.77% is negative, indicating declining revenue over the past 3 years

Principal Financial Group, Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Principal Financial Group, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Principal Financial Group, Inc. is undervalued relative to its fair value price of 286.25 based on Discounted Cash Flow model

Principal Financial Group, Inc. has an earnings yield of 6.22%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Principal Financial Group, Inc. is overvalued relative to its fair value price of 54.95 based on EBITDA multiple model

Principal Financial Group, Inc. has insufficient data to compute enterprise value.

Principal Financial Group, Inc. is overvalued relative to its fair value price of 74.88 based on Earnings Fair Value model

Principal Financial Group, Inc. has a PEG-ratio over 1 which is considered overvalued

Principal Financial Group, Inc. has a price-to-book ratio of 1.93x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Principal Financial Group, Inc. has a price-to-sales ratio of 1.59x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue