Stock fact sheet · data as of
Principal Financial Group, Inc. (PFG): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · Value
Is PFG undervalued?
At 107.26 (close of 16 Oct 2026), PFG trades 32% below the GLS average fair value of 158.46. That average comes from 9 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Principal Financial Group, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between GLS Growth (2.02) and 10 Cap (471.06). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files PFG under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for PFG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 209.99 | +96% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 94.01 | -12% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 173.81 | +62% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 58.82 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.02 | -98% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 471.06 | +339% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 290.03 | +170% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 47.82 | -55% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 78.60 | -27% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1,269.14 | -1283% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 108.33 | +1% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Principal Financial Group, Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 7.5%, ROE 10.0%, ROA 0.3% - with debt at 0.33 times equity and a free-cash-flow yield of 21.1%.
The dividend yield is 3.03% at a payout ratio of 45%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Segment Retirement and Investor Services 47%, Benefits and Protection 32%, Principal Asset Management 20% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 7.5% |
|---|---|---|---|
| GLS Moat | 3.8 / 10 | ROE | 10.0% |
| Debt / equity | 0.33 | ROA | 0.3% |
| Free-cash-flow yield | 21.1% | Payout ratio | 45% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 78: Good
With a Wheel Score of 78 - the Good band - Principal Financial Group, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 11/20, Moat 6/15, Premium 17/20, Stability 19/20; Moat (6/15) scores lowest.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (17 of 20 points). Chain open interest is 2,782 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.3M shares a day on a market cap of $23.0B, with a beta of 0.87; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 32% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 6 / 15 | moat 3.8/10 | |
| Premium | 17 / 20 | implied volatility 32% | |
| Stability | 19 / 20 | 1.3M shares/day, $23.0B cap, beta 0.87 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Principal Financial Group, Inc. reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Principal Financial Group, Inc. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AMUSX American Funds U.S. Government Securities Fund Class A | 11.44 | 3.53 | -225% | 33No options | $23.3B |
| JVMAX John Hancock Funds Disciplined Value Mid Cap Fund Class A | 29.35 | 4.94 | -494% | 31No options | $22.5B |
| JVMRX John Hancock Funds Disciplined Value Mid Cap Fund | 31.36 | 5.15 | -509% | 31No options | $22.5B |
| APDKX Artisan International Value Fund Advisor Class | 59.43 | 44.81 | -33% | 34No options | $24.4B |
| ARTKX Artisan International Fund | 59.58 | 44.41 | -34% | 34No options | $24.5B |
| WCMRX WCM Focused International Growth Fd Inv Cl | 26.34 | 20.04 | -31% | 21No options | $21.5B |
| APHKX Artisan International Value Fund Institutional Class | 59.78 | 46.89 | -27% | 33No options | $24.6B |
| TROW T. Rowe Price Group, Inc. | 99.62 | 116.88 | +15% | 81Prime | $21.3B |
| RPTIX T. Rowe Price Mid-Cap Growth Fund | 100.80 | 114.61 | +12% | 39No options | $20.7B |
| PARDX T. Rowe Price Retirement 2040 Fund | 37.23 | 39.50 | +6% | 34No options | $25.9B |
| LZOEX Lazard Emerging Markets Equity Portfolio | 32.34 | 1.35 | -2297% | 28No options | $20.0B |
| VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares | 11.21 | 1.17 | -857% | 28No options | $27.3B |
⚖ Compare PFG with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about PFG
Is PFG undervalued right now?
By the GLS models, yes: at 107.26 the stock is 32% below the average fair value of 158.46 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PFG and what does it mean?
PFG scores 78 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PFG?
158.46 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Principal Financial Group, Inc. report earnings next?
The next earnings report is due on 26 Oct 2026 (after the close), 10 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PFG have listed options, and how liquid are they?
Yes. The nightly snapshot found 214 listed contracts with 2,782 open interest across all expiries and implied volatility of 32% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.