PFGNEUTRAL

Return on Equity (ROE)

13.4%

Higher than 51% of Financial Services sector peers

Updated 152h ago

Sector Performance

51th percentile

PFG

13.4%

Sector Median

12.9%

Sector Avg

17.5%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — a 13.4% ROE means Principal Financial earned $0.134 for every dollar of equity.

This sits nearly at the sector median of 13.6%, placing the company in the 49th percentile among peers, indicating performance is roughly in the middle of the Financial Services group. The year-over-year and quarter-over-quarter changes are both N/A, and no trend data is available for the last eight quarters, leaving any directional insight absent. With the ROE level matching the sector median and no trend history, there is neither a clear risk of underperformance nor a distinct opportunity for above-peer returns. This metric directly supports the overall NEUTRAL verdict, as the ROE is essentially average and provides no catalyst for an upgrade or downgrade.

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 13.4% compares to a Financial Services sector median of 12.9%, placing it in the 51th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: BLK (11.9%), RF (11.9%), HSBC (11.6%), GOLD (10.8%), PRU (10.7%).

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.