PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRI - US74164M1080 - Common Stock
258.83 USD
+0.21 (+0.08%)
258.83 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRI. PRI was compared to 148 industry peers in the Insurance industry. While PRI belongs to the best of the industry regarding profitability, there are 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.
PRI had a positive operating cash flow in the past year.
Each year in the past 5 years PRI has been profitable.
Each year in the past 5 years PRI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PRI (4.84%) is better than 81.08% of its industry peers.
PRI has a Return On Equity of 31.31%. This is amongst the best in the industry. PRI outperforms 97.30% of its industry peers.
PRI has a Return On Invested Capital of 5.08%. This is in the better half of the industry: PRI outperforms 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 3 year average ROIC (4.51%) for PRI is below the current ROIC(5.08%), indicating increased profibility in the last year.
| 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's Profit Margin of 22.28% is amongst the best of the industry. PRI outperforms 92.57% of its industry peers.
In the last couple of years the Profit Margin of PRI has declined.
With an excellent Operating Margin value of 30.07%, PRI belongs to the best of the industry, outperforming 92.57% of the companies in the same industry.
PRI's Operating Margin has improved in the last couple of years.
| 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
Compared to 1 year ago, PRI has an improved debt to assets ratio.
2.2 Solvency
PRI has a debt to FCF ratio of 2.26. This is a good value and a sign of high solvency as PRI would need 2.26 years to pay back of all of its debts.
The Debt to FCF ratio of PRI (2.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.80 indicates that PRI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, PRI is not doing good in the industry: 87.16% of the companies in the same industry are doing better.
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.
Measured over the past years, PRI shows a quite strong growth in Revenue. The Revenue has been growing by 8.51% on average per year.
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
PRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.13% yearly.
The Revenue is expected to grow by 5.31% on average over the next years.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.85, which indicates a very decent valuation of PRI.
PRI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.39, PRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of PRI can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as PRI.
PRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRI indicates a somewhat cheap valuation: PRI is cheaper than 64.86% of the companies listed 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 | 10.16 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
PRI's 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.
Compared to an average industry Dividend Yield of 2.30, PRI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, PRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of PRI is nicely growing with an annual growth rate of 19.20%!
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
18.50% of the earnings are spent on dividend by PRI. This is a low number and sustainable payout ratio.
The dividend of PRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.5%
EPS Next 2Y11.74%
EPS Next 3Y10.88%
258.83
+0.21 (+0.08%)
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 Cap8.26B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price Target310.23 (19.86%)
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 | 11.85 | ||
| Fwd PE | 10.73 | ||
| P/S | 2.56 | ||
| P/FCF | 10.16 | ||
| P/OCF | 9.91 | ||
| P/B | 3.6 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)21.84
EY8.44%
EPS(NY)24.13
Fwd EY9.32%
FCF(TTM)25.49
FCFY9.85%
OCF(TTM)26.11
OCFY10.09%
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 11.85 and the Price/Book (PB) ratio is 3.6.
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.