Principal Financial Group trades at an attractive forward P/E of 10.8x with a strong Piotroski F-Score of 8/9 and positive price momentum, but revenue is declining 4% year-over-year, two recent earnings misses have emerged, and the stock is priced above analyst targets with negative upside.
Thesis pillars
- Attractive Valuation Low Pe→Stable
- Piotroski Balance Sheet Strength→Stable
- Revenue Decline Miss Streak↑Improving
- +1 more pillar — see the Why tab for full reasoning
Principal Financial Group Inc (PFG) Stock Analysis
Range Bound setup
Financial Services · Asset Management
Wait for pullback to $103.17. Weak momentum — blocks BUY_NOW at $109.40. Engine's entry $103.17 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Near 52-week high (4.8% away).
Principal Financial Group provides retirement plan services, asset management, and employee benefits and life insurance to businesses and individuals, with $1,814.6 billion in AUA and $781.0 billion in AUM at December 31, 2025. The company earns AUM/AUA-based fees, insurance... Read more
Wait for pullback to $103.17. Weak momentum — blocks BUY_NOW at $109.40. Engine's entry $103.17 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Near 52-week high (4.8% away). Chart setup: RSI 40 mid-range, Bollinger mid-band. Earnings in 2 days. Wait until post-earnings. Score 5.0/10, moderate confidence.
Passes 4/7 gates (clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 2d<=7d. Suitability: moderate.
About Principal Financial Group Inc
About Principal Financial Group Inc
Principal Financial Group administered $1,814.6 billion in assets under administration and managed $781.0 billion in assets under management at December 31, 2025, organized across three reportable segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. The retirement business served more than 42,000 defined contribution plans holding $625.3 billion in assets and covering approximately 11.3 million eligible participants. Specialty Benefits provided 321,000 coverages to more than 3,300,000 employees across roughly 103,000 employer groups.
Principal Financial Group earns fee income tied to AUM and AUA from its asset management and retirement administration operations, insurance premiums in Specialty Benefits and Life Insurance, and spread income from guaranteed investment contracts and funding agreements. The Principal Asset Management segment managed $593.9 billion in assets at December 31, 2025, with 30% of WSRS account values managed internally and 66% managed entirely by third-party asset managers. Individual variable annuity products are sold primarily through affiliated financial representatives, who accounted for 68% of annuity sales in 2025. In Brazil, the Brasilprev joint venture with Banco do Brasil holds exclusive distribution rights for pension and income annuity products through the Banco network until October 2032. Principal Bank, a U.S. federal savings bank with approximately $9.3 billion in assets and nearly 816,000 customers at December 31, 2025, primarily accepts IRA rollovers from retirement plans serviced by affiliates.
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Principal Financial Group's 10-K identifies the California commercial mortgage loan portfolio as a named regional concentration. If economic conditions in California deteriorate or catastrophes occur—including earthquakes, wildfires, drought, or flooding—the company may experience delinquencies or defaults that could harm its financial strength. Separately, approximately 41% of total invested assets at December 31, 2025 consisted of less liquid instruments including privately placed fixed maturities, mortgage loans, and real estate, which may be difficult to sell at reported values in a stressed market scenario.
See also: Financial Services · Asset Management
From Principal Financial Group Inc's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-26Recent Developments — Principal Financial Group Inc
Latest news
- NEWS Principal Financial Group Inc. stock outperforms competitors despite losses on the day - MarketWatch — MarketWatch positive
- NEWS Analysts Offer Insights on Financial Companies: Principal Financial (PFG) and Robinhood (HOOD) - The Globe and Mail — The Globe and Mail neutral
- NEWS PFG Maintained by Wells Fargo -- Price Target Lowered to $113 - GuruFocus — GuruFocus neutral
- NEWS Principal Financial Group, Inc. (NASDAQ:PFG) Given Consensus Rating of "Hold" by Brokerages - MarketBeat — MarketBeat neutral
- NEWS Paychex, Inc. $PAYX Stock Holdings Decreased by PFG Advisors - MarketBeat — MarketBeat negative
Generated 2026-07-26T09:23:01Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMloan_portfolioCalifornia commercial mortgage loans10-K Item 1A: 'Regional concentration of our commercial mortgage loan portfolio in California may subject us to losses attributable to economic downturns or catastrophes in that state'
- MEDIUMcounterpartyBanco do Brasil10-K Item 1: 'with our partner with Banco do Brasil...the exclusive distribution rights of its pension accumulation and income annuity products through the Banco network until October 2032'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -4.5% YoY. Growth thesis broken unless recovery story develops.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $103.17. Weak momentum — blocks BUY_NOW at $109.40. Engine's entry $103.17 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Near 52-week high (4.8% away). Chart setup: RSI 40 mid-range, Bollinger mid-band. Earnings in 2 days. Wait until post-earnings. Target $112.60 (+2.9%), stop $98.27 (−11.3%), A.R:R -3.1:1. Score 5.0/10, moderate confidence.
Take-profit target: $112.60 (-15.4% upside). Target $112.60 (+2.9%), stop $98.27 (−11.3%), A.R:R -3.1:1. Stop-loss: $98.27.
Analyst target reached - limited upside remaining; Near 52-week high (4.8% away).
Principal Financial Group Inc trades at a P/E of 15.4 (forward 10.6). TrendMatrix value score: 7.5/10. Verdict: Buy (Wait for Entry).
22 analysts cover PFG with a consensus score of 2.7/5. Average price target: $106.
What does Principal Financial Group Inc do?Principal Financial Group provides retirement plan services, asset management, and employee benefits and life insurance...
Principal Financial Group provides retirement plan services, asset management, and employee benefits and life insurance to businesses and individuals, with $1,814.6 billion in AUA and $781.0 billion in AUM at December 31, 2025. The company earns AUM/AUA-based fees, insurance premiums, and spread income; it focuses on small and medium-sized businesses as an underserved U.S. market while serving institutional clients globally.