PRUNEUTRAL

Return on Equity (ROE)

10.7%

Higher than 33% of Financial Services sector peers

Updated 28h ago

Sector Performance

33th percentile

PRU

10.7%

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 every dollar of shareholders' equity — a 10.7% ROE means PRU earned $0.107 for each $1 of equity.

This is below the Financial Services sector median of 12.9%, placing PRU in the 33rd percentile among its peers, indicating weaker profitability relative to the industry. The year-over-year change and quarter-over-quarter change are both listed as N/A, and the trend direction over the last eight quarters is also unavailable, so no recent performance trajectory can be assessed. Because the ROE level is below the sector median and no trend data exists to suggest improvement, the metric points to average or slightly below-average efficiency with an unclear outlook. This combination does not signal a strong risk or opportunity on its own, but it reinforces the overall NEUTRAL verdict by showing neither a compelling strength nor an obvious weakness in capital efficiency.

Frequently Asked Questions

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

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 PRU's Return on Equity (ROE) compare to its sector?

PRU's Return on Equity (ROE) of 10.7% compares to a Financial Services sector median of 12.9%, placing it in the 33th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: AFL (12.4%), ARES (12.3%), BLK (11.9%), RF (11.9%), HSBC (11.6%).

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.