PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRI - US74164M1080 - Common Stock
260.21 USD
-1.95 (-0.74%)
260.21 USD
0 (0%)
PRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. While PRI has a great profitability rating, there are quite some concerns on its financial health. PRI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PRI had positive earnings in the past year.
In the past year PRI had a positive cash flow from operations.
Each year in the past 5 years PRI has been profitable.
PRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRI has a better Return On Assets (4.84%) than 81.08% of its industry peers.
With an excellent Return On Equity value of 31.31%, PRI belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
The Return On Invested Capital of PRI (5.08%) is better than 77.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRI is significantly below the industry average of 14.88%.
The last Return On Invested Capital (5.08%) for PRI is above the 3 year average (4.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 31.31% | ||
| ROIC | 5.08% |
ROA(3y)3.41%
ROA(5y)3.15%
ROE(3y)23.89%
ROE(5y)23.09%
ROIC(3y)4.51%
ROIC(5y)3.99%
1.3 Margins
PRI has a better Profit Margin (22.28%) than 92.57% of its industry peers.
In the last couple of years the Profit Margin of PRI has declined.
PRI's Operating Margin of 30.07% is amongst the best of the industry. PRI outperforms 92.57% of its industry peers.
In the last couple of years the Operating Margin of PRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.07% | ||
| PM (TTM) | 22.28% | ||
| GM | N/A |
OM growth 3Y3.67%
OM growth 5Y4.8%
PM growth 3Y-4.72%
PM growth 5Y-3.09%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRI is destroying value.
Compared to 1 year ago, PRI has less shares outstanding
Compared to 5 years ago, PRI has less shares outstanding
PRI has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PRI is 2.26, which is a good value as it means it would take PRI, 2.26 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.26, PRI perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that PRI is somewhat dependend on debt financing.
The Debt to Equity ratio of PRI (0.80) is worse than 87.16% of its industry peers.
Even though the debt/equity ratio score it not favorable for PRI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.26 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC7.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.74%, which is quite good.
Measured over the past years, PRI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.05% on average per year.
Looking at the last year, PRI shows a small growth in Revenue. The Revenue has grown by 5.89% in the last year.
PRI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
EPS 1Y (TTM)17.74%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%11.44%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%12.86%
3.2 Future
The Earnings Per Share is expected to grow by 10.13% on average over the next years. This is quite good.
PRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
EPS Next Y16.44%
EPS Next 2Y11.74%
EPS Next 3Y10.88%
EPS Next 5Y10.13%
Revenue Next Year8.13%
Revenue Next 2Y6.42%
Revenue Next 3Y6.06%
Revenue Next 5Y5.31%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.91, which indicates a very decent valuation of PRI.
Compared to the rest of the industry, the Price/Earnings ratio of PRI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.57, PRI is valued rather cheaply.
The Price/Forward Earnings ratio is 10.78, which indicates a very decent valuation of PRI.
PRI's Price/Forward Earnings ratio is in line with the industry average.
PRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
PRI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRI is cheaper than 64.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.21 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.72
PEG (5Y)0.66
EPS Next 2Y11.74%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
PRI's Dividend Yield is comparable with the industry average which is at 2.30.
Compared to an average S&P500 Dividend Yield of 1.88, PRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
On average, the dividend of PRI grows each year by 19.20%, which is quite nice.
PRI has been paying a dividend for at least 10 years, so it has a reliable track record.
PRI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.2%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
PRI pays out 18.50% of its income as dividend. This is a sustainable payout ratio.
PRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.5%
EPS Next 2Y11.74%
EPS Next 3Y10.88%
260.21
-1.95 (-0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.15%
Inst Owner Change-1.56%
Ins Owners0.54%
Ins Owner Change-3.41%
Market Cap8.31B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price TargetN/A
Short Float %4.2%
Short Ratio7.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend3.3
Dividend Growth(5Y)19.2%
DP18.5%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.45%
Min EPS beat(2)3.78%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)5.19%
Min EPS beat(4)-0.09%
Max EPS beat(4)13.12%
EPS beat(8)5
Avg EPS beat(8)4.38%
EPS beat(12)8
Avg EPS beat(12)5.11%
EPS beat(16)9
Avg EPS beat(16)1.51%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.74%
Revenue beat(4)3
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)0.85%
Revenue beat(12)5
Avg Revenue beat(12)0.01%
Revenue beat(16)7
Avg Revenue beat(16)5.54%
PT rev (1m)-2.47%
PT rev (3m)-1.25%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)3.05%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 10.78 | ||
| P/S | 2.57 | ||
| P/FCF | 10.21 | ||
| P/OCF | 9.96 | ||
| P/B | 3.62 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)21.84
EY8.39%
EPS(NY)24.13
Fwd EY9.27%
FCF(TTM)25.49
FCFY9.79%
OCF(TTM)26.11
OCFY10.04%
SpS101.07
BVpS71.93
TBVpS70.51
PEG (NY)0.72
PEG (5Y)0.66
Graham Number188
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 31.31% | ||
| ROCE | 6.63% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.31% | ||
| ROICexgc | 6.63% | ||
| OM | 30.07% | ||
| PM (TTM) | 22.28% | ||
| GM | N/A | ||
| FCFM | 25.22% |
ROA(3y)3.41%
ROA(5y)3.15%
ROE(3y)23.89%
ROE(5y)23.09%
ROIC(3y)4.51%
ROIC(5y)3.99%
ROICexc(3y)4.7%
ROICexc(5y)4.15%
ROICexgc(3y)5.93%
ROICexgc(5y)5.27%
ROCE(3y)5.88%
ROCE(5y)5.21%
ROICexgc growth 3Y11.32%
ROICexgc growth 5Y12.44%
ROICexc growth 3Y13.03%
ROICexc growth 5Y13.1%
OM growth 3Y3.67%
OM growth 5Y4.8%
PM growth 3Y-4.72%
PM growth 5Y-3.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.26 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 5.97% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.84% | ||
| Profit Quality | 113.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.31%
ROIC/WACC0.69
Cap/Depr(3y)8.9%
Cap/Depr(5y)9.38%
Cap/Sales(3y)1.03%
Cap/Sales(5y)1.05%
Profit Quality(3y)149.37%
Profit Quality(5y)148.26%
High Growth Momentum
Growth
EPS 1Y (TTM)17.74%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%11.44%
EPS Next Y16.44%
EPS Next 2Y11.74%
EPS Next 3Y10.88%
EPS Next 5Y10.13%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%12.86%
Revenue Next Year8.13%
Revenue Next 2Y6.42%
Revenue Next 3Y6.06%
Revenue Next 5Y5.31%
EBIT growth 1Y-29.9%
EBIT growth 3Y8.3%
EBIT growth 5Y13.71%
EBIT Next Year2.1%
EBIT Next 3Y2.82%
EBIT Next 5YN/A
FCF growth 1Y26.65%
FCF growth 3Y9.62%
FCF growth 5Y11.4%
OCF growth 1Y26.71%
OCF growth 3Y9.48%
OCF growth 5Y12.17%
PRIMERICA INC / PRI FAQ
What is the ChartMill fundamental rating of PRIMERICA INC (PRI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PRI.
What is the valuation status of PRIMERICA INC (PRI) stock?
ChartMill assigns a valuation rating of 6 / 10 to PRIMERICA INC (PRI). This can be considered as Fairly Valued.
How profitable is PRIMERICA INC (PRI) stock?
PRIMERICA INC (PRI) has a profitability rating of 7 / 10.
What is the valuation of PRIMERICA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PRIMERICA INC (PRI) is 11.91 and the Price/Book (PB) ratio is 3.62.
What is the expected EPS growth for PRIMERICA INC (PRI) stock?
The Earnings per Share (EPS) of PRIMERICA INC (PRI) is expected to grow by 16.44% in the next year.