PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
274.23 USD
-0.17 (-0.06%)
274.23 USD
0 (0%)
Taking everything into account, PRI scores 5 out of 10 in our fundamental rating. PRI was compared to 146 industry peers in the Insurance industry. PRI has an excellent profitability rating, but there are concerns on its financial health. PRI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PRI was profitable.
In the past year PRI had a positive cash flow from operations.
In the past 5 years PRI has always been profitable.
In the past 5 years PRI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.56%, PRI belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
With an excellent Return On Equity value of 29.32%, PRI belongs to the best of the industry, outperforming 96.58% of the companies in the same industry.
PRI's Return On Invested Capital of 4.99% is amongst the best of the industry. PRI outperforms 81.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRI is in line with the industry average of 4.47%.
The last Return On Invested Capital (4.99%) for PRI is above the 3 year average (4.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 29.32% | ||
| ROIC | 4.99% |
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
Looking at the Profit Margin, with a value of 21.41%, PRI belongs to the top of the industry, outperforming 93.84% of the companies in the same industry.
In the last couple of years the Profit Margin of PRI has declined.
PRI's Operating Margin of 30.16% is amongst the best of the industry. PRI outperforms 96.58% of its industry peers.
PRI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.16% | ||
| PM (TTM) | 21.41% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRI is destroying value.
The number of shares outstanding for PRI has been reduced compared to 1 year ago.
The number of shares outstanding for PRI has been reduced compared to 5 years ago.
Compared to 1 year ago, PRI has an improved debt to assets ratio.
2.2 Solvency
PRI has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as PRI would need 2.29 years to pay back of all of its debts.
PRI has a Debt to FCF ratio (2.29) which is comparable to the rest of the industry.
PRI has a Debt/Equity ratio of 0.80. This is a neutral value indicating PRI is somewhat dependend on debt financing.
The Debt to Equity ratio of PRI (0.80) is worse than 86.99% of its industry peers.
Although PRI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC7.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.56% over the past year.
PRI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.05% yearly.
The Revenue has been growing slightly by 5.93% in the past year.
The Revenue has been growing by 8.51% on average over the past years. This is quite good.
EPS 1Y (TTM)23.56%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%15.92%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%-1.25%
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 9.29% yearly.
The Revenue is expected to grow by 5.54% on average over the next years.
EPS Next Y12.55%
EPS Next 2Y10.55%
EPS Next 3Y9.69%
EPS Next 5Y9.29%
Revenue Next Year7.7%
Revenue Next 2Y6.54%
Revenue Next 3Y5.96%
Revenue Next 5Y5.54%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 12.94 indicates a correct valuation of PRI.
PRI's Price/Earnings ratio is in line with the industry average.
PRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 11.61, which indicates a very decent valuation of PRI.
The rest of the industry has a similar Price/Forward Earnings ratio as PRI.
The average S&P500 Price/Forward Earnings ratio is at 22.73. PRI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.61 |
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 62.33% of the companies listed in the same industry.
PRI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.98 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
PRI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)0.72
EPS Next 2Y10.55%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.52%.
PRI's Dividend Yield is comparable with the industry average which is at 3.53.
Compared to the average S&P500 Dividend Yield of 2.41, PRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)19.2%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
PRI pays out 19.17% of its income as dividend. This is a sustainable payout ratio.
The dividend of PRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.17%
EPS Next 2Y10.55%
EPS Next 3Y9.69%
274.23
-0.17 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change-4.3%
Ins Owners0.55%
Ins Owner Change-1.65%
Market Cap8.88B
Analysts71.43
Price Target314.16 (14.56%)
Short Float %3.57%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend3.3
Dividend Growth(5Y)19.2%
DP19.17%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.86%
Min EPS beat(2)3.78%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)6.31%
Min EPS beat(4)-0.09%
Max EPS beat(4)17.62%
EPS beat(8)5
Avg EPS beat(8)3.38%
EPS beat(12)8
Avg EPS beat(12)4.17%
EPS beat(16)8
Avg EPS beat(16)0.62%
Revenue beat(2)1
Avg Revenue beat(2)0.6%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.46%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)0.8%
Revenue beat(12)4
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)5.58%
PT rev (1m)0.23%
PT rev (3m)2.47%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)3.2%
EPS NY rev (1m)2.94%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.61 | ||
| P/S | 2.81 | ||
| P/FCF | 10.98 | ||
| P/OCF | 10.6 | ||
| P/B | 3.85 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)21.19
EY7.73%
EPS(NY)23.63
Fwd EY8.62%
FCF(TTM)24.98
FCFY9.11%
OCF(TTM)25.87
OCFY9.43%
SpS97.57
BVpS71.24
TBVpS69.84
PEG (NY)1.03
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 29.32% | ||
| ROCE | 6.52% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 6.51% | ||
| OM | 30.16% | ||
| PM (TTM) | 21.41% | ||
| GM | N/A | ||
| FCFM | 25.6% |
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%
ROICexcg growth 3Y11.32%
ROICexcg 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 8.75% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.31% | ||
| Profit Quality | 119.6% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.31%
ROIC/WACC0.68
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)23.56%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%15.92%
EPS Next Y12.55%
EPS Next 2Y10.55%
EPS Next 3Y9.69%
EPS Next 5Y9.29%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%-1.25%
Revenue Next Year7.7%
Revenue Next 2Y6.54%
Revenue Next 3Y5.96%
Revenue Next 5Y5.54%
EBIT growth 1Y-28.26%
EBIT growth 3Y8.3%
EBIT growth 5Y13.71%
EBIT Next Year-9.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22%
FCF growth 3Y9.62%
FCF growth 5Y11.4%
OCF growth 1Y22.35%
OCF growth 3Y9.48%
OCF growth 5Y12.17%