PFGNEUTRAL

PFG Return on Equity (ROE) Analysis

12.9%

Higher than 48% of Financial Services sector peers

Updated 127h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so Principal Financial’s 12.9% means it earns $0.129 for every $1 of equity invested.

Sector Performance

48th percentile

PFG

12.9%

Sector Median

13.3%

Sector Avg

19.5%

Prior Period

13.4%(Jul 2026)

↓ Declining

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so Principal Financial’s 12.9% means it earns $0.129 for every $1 of equity invested.

That return sits just above the sector median of 12.7%, placing the company at the 52nd percentile among peers. Trend data are unavailable: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 12.9% are provided. With only a current level and no direction, you cannot assess whether profitability is improving or deteriorating, which adds uncertainty to the investment case. The combination of a near-sector-average ROE and a missing trend implies limited edge but also no clear deterioration, reducing both upside opportunity and immediate downside risk. This metric supports the overall NEUTRAL verdict — the return is in line with peers, and the lack of trend data prevents any stronger bullish or bearish signal.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PFG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PFG's Return on Equity (ROE) compare to its sector?

PFG's Return on Equity (ROE) of 12.9% compares to a Financial Services sector median of 13.3%, placing it in the 48th percentile.

Who are PFG's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: HDB (13.8%), AFL (12.4%), ARES (12.3%), RF (11.9%), AIZ (14.9%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.