Prudential Looks Cheap, But Japan And Cash Flow Risks Loom

2026-02-23 23:46:20

Prudential Financial appears undervalued with a discounted P/E and attractive dividend, but faces significant challenges. The company is grappling with elevated financial leverage, negative free cash flow, and a temporary sales suspension in Japan due to misconduct. While Prudential benefits from scale and long-term growth markets, these risks could impede its recovery despite potential upsides from its asset management arm and an Indian joint venture listing.

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