PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRI - US74164M1080 - Common Stock
258.73 USD
+0.37 (+0.14%)
258.73 USD
0 (0%)
Overall PRI gets a fundamental rating of 5 out of 10. We evaluated PRI 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
In the past year PRI was profitable.
PRI had a positive operating cash flow in the past year.
PRI had positive earnings in each of the past 5 years.
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 81.76% 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.
PRI has a better Return On Invested Capital (5.08%) than 78.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRI is significantly below the industry average of 14.93%.
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
Looking at the Profit Margin, with a value of 22.28%, PRI belongs to the top of the industry, outperforming 92.57% of the companies in the same industry.
In the last couple of years the Profit Margin of PRI has declined.
PRI has a better Operating Margin (30.07%) than 92.57% of its industry peers.
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
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
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.
PRI has a Debt to FCF ratio (2.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.80 indicates that PRI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, PRI is doing worse than 86.49% of the companies in the same industry.
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 | 2.26 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC7.33%
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.
The Earnings Per Share has been growing by 18.05% on average over the past years. This is quite good.
Looking at the last year, PRI shows a small growth in Revenue. The Revenue has grown by 5.89% in the last year.
The Revenue has been growing by 8.51% on average over the past years. This is quite good.
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
Based on estimates for the next years, PRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.13% on average per year.
Based on estimates for the next years, PRI will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
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.
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.
The rest of the industry has a similar Price/Earnings ratio as PRI.
When comparing the Price/Earnings ratio of PRI to the average of the S&P500 Index (26.60), we can say PRI is valued rather cheaply.
PRI is valuated reasonably with a Price/Forward Earnings ratio of 10.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRI is on the same level as its industry peers.
PRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRI is valued a bit cheaper than 64.86% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| 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%.
PRI's Dividend Yield is comparable with the industry average which is at 2.48.
PRI's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| 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
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%
258.73
+0.37 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change-3.41%
Market Cap8.26B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price Target308.91 (19.39%)
Short Float %4.1%
Short Ratio6.3
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-DateN/A
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)-0.66%
PT rev (3m)-2.62%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 10.72 | ||
| P/S | 2.56 | ||
| P/FCF | 10.15 | ||
| 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 EY9.33%
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
WACC7.33%
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 for PRI stock?
ChartMill assigns a valuation rating of 6 / 10 to PRIMERICA INC (PRI). This can be considered as Fairly Valued.
What is the profitability of 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.
Can you provide the expected EPS growth for PRI stock?
The Earnings per Share (EPS) of PRIMERICA INC (PRI) is expected to grow by 16.44% in the next year.