PRIMERICA INC (PRI) Stock Fundamental Analysis
NYSE:PRI - New York Stock Exchange, Inc. - US74164M1080 - Common Stock
PRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. PRI has an excellent profitability rating, but 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.
PRI had positive earnings in each of the past 5 years.
PRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRI has a better Return On Assets (3.99%) than 72.34% of its industry peers.
Looking at the Return On Equity, with a value of 30.36%, PRI belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.17%, PRI belongs to the best of the industry, outperforming 86.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PRI is in line with the industry average of 4.61%.
The 3 year average ROIC (3.77%) for PRI is below the current ROIC(7.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 30.36% | ||
| ROIC | 7.17% |
ROA(3y)3.33%
ROA(5y)3.04%
ROE(3y)24.58%
ROE(5y)23.35%
ROIC(3y)3.77%
ROIC(5y)3.39%
1.3 Margins
PRI's Profit Margin of 19.40% is amongst the best of the industry. PRI outperforms 83.69% of its industry peers.
PRI's Profit Margin has improved in the last couple of years.
The Operating Margin of PRI (45.42%) is better than 97.16% of its industry peers.
PRI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.42% | ||
| PM (TTM) | 19.4% | ||
| GM | N/A |
OM growth 3Y4.39%
OM growth 5Y3.36%
PM growth 3Y5.62%
PM growth 5Y3.75%
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.
PRI has less shares outstanding than it did 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 2.45. This is a good value and a sign of high solvency as PRI would need 2.45 years to pay back of all of its debts.
PRI's Debt to FCF ratio of 2.45 is in line compared to the rest of the industry. PRI outperforms 48.94% of its industry peers.
PRI has a Debt/Equity ratio of 0.99. This is a neutral value indicating PRI is somewhat dependend on debt financing.
PRI has a Debt to Equity ratio of 0.99. This is amonst the worse of the industry: PRI underperforms 87.23% 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 | 0.99 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC7.85%
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 21.64%, which is quite impressive.
The Earnings Per Share has been growing by 16.88% on average over the past years. This is quite good.
Looking at the last year, PRI shows a quite strong growth in Revenue. The Revenue has grown by 9.74% in the last year.
The Revenue has been growing by 8.18% on average over the past years. This is quite good.
EPS 1Y (TTM)21.64%
EPS 3Y18.1%
EPS 5Y16.88%
EPS Q2Q%32.71%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y8.22%
Revenue growth 5Y8.18%
Sales Q2Q%4.34%
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 11.73% yearly.
PRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.12% yearly.
EPS Next Y21.57%
EPS Next 2Y14.45%
EPS Next 3Y12.79%
EPS Next 5Y11.73%
Revenue Next Year7.03%
Revenue Next 2Y5.84%
Revenue Next 3Y5.55%
Revenue Next 5Y5.12%
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
PRI is valuated correctly with a Price/Earnings ratio of 15.80.
Compared to the rest of the industry, the Price/Earnings ratio of PRI is on the same level as its industry peers.
PRI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 13.97 indicates a correct valuation of PRI.
PRI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PRI to the average of the S&P500 Index (24.44), we can say PRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 13.97 |
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 73.76% 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 | 12.45 | ||
| EV/EBITDA | 6.56 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PRI's earnings are expected to grow with 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)0.94
EPS Next 2Y14.45%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.25%.
PRI's Dividend Yield is comparable with the industry average which is at 2.99.
Compared to an average S&P500 Dividend Yield of 2.28, PRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of PRI is nicely growing with an annual growth rate of 20.82%!
PRI has paid a dividend for at least 10 years, which is 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)20.82%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
17.85% of the earnings are spent on dividend by PRI. This is a low number and sustainable payout ratio.
PRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.85%
EPS Next 2Y14.45%
EPS Next 3Y12.79%
PRIMERICA INC
NYSE:PRI (1/22/2025, 2:04:32 PM)
293.06
-0.47 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.01%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change-4.62%
Market Cap9.78B
Analysts70
Price Target321.47 (9.69%)
Short Float %1.01%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend2.61
Dividend Growth(5Y)20.82%
DP17.85%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.92%
Min EPS beat(2)4.22%
Max EPS beat(2)17.62%
EPS beat(4)2
Avg EPS beat(4)3.57%
Min EPS beat(4)-6.06%
Max EPS beat(4)17.62%
EPS beat(8)5
Avg EPS beat(8)5.07%
EPS beat(12)6
Avg EPS beat(12)0.28%
EPS beat(16)8
Avg EPS beat(16)0.71%
Revenue beat(2)1
Avg Revenue beat(2)2.53%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)6.21%
Revenue beat(4)1
Avg Revenue beat(4)0.83%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)6.21%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)4
Avg Revenue beat(12)7.1%
Revenue beat(16)8
Avg Revenue beat(16)5.98%
PT rev (1m)-0.42%
PT rev (3m)14.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)0%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 13.97 | ||
| P/S | 3.21 | ||
| P/FCF | 12.45 | ||
| P/OCF | 11.75 | ||
| P/B | 5.02 | ||
| P/tB | 5.14 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)18.55
EY6.33%
EPS(NY)20.97
Fwd EY7.16%
FCF(TTM)23.54
FCFY8.03%
OCF(TTM)24.95
OCFY8.51%
SpS91.3
BVpS58.34
TBVpS56.98
PEG (NY)0.73
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 30.36% | ||
| ROCE | 9.43% | ||
| ROIC | 7.17% | ||
| ROICexc | 7.45% | ||
| ROICexgc | 9.35% | ||
| OM | 45.42% | ||
| PM (TTM) | 19.4% | ||
| GM | N/A | ||
| FCFM | 25.79% |
ROA(3y)3.33%
ROA(5y)3.04%
ROE(3y)24.58%
ROE(5y)23.35%
ROIC(3y)3.77%
ROIC(5y)3.39%
ROICexc(3y)3.9%
ROICexc(5y)3.5%
ROICexgc(3y)5%
ROICexgc(5y)4.48%
ROCE(3y)4.96%
ROCE(5y)4.45%
ROICexcg growth 3Y12.72%
ROICexcg growth 5Y8.71%
ROICexc growth 3Y12.91%
ROICexc growth 5Y8.54%
OM growth 3Y4.39%
OM growth 5Y3.36%
PM growth 3Y5.62%
PM growth 5Y3.75%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 14.76% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.93% | ||
| Profit Quality | 132.92% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.85%
ROIC/WACC0.91
Cap/Depr(3y)8.8%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.02%
Cap/Sales(5y)N/A
Profit Quality(3y)134.48%
Profit Quality(5y)139.35%
High Growth Momentum
Growth
EPS 1Y (TTM)21.64%
EPS 3Y18.1%
EPS 5Y16.88%
EPS Q2Q%32.71%
EPS Next Y21.57%
EPS Next 2Y14.45%
EPS Next 3Y12.79%
EPS Next 5Y11.73%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y8.22%
Revenue growth 5Y8.18%
Sales Q2Q%4.34%
Revenue Next Year7.03%
Revenue Next 2Y5.84%
Revenue Next 3Y5.55%
Revenue Next 5Y5.12%
EBIT growth 1Y84.75%
EBIT growth 3Y12.96%
EBIT growth 5Y11.82%
EBIT Next Year9.03%
EBIT Next 3Y6.97%
EBIT Next 5YN/A
FCF growth 1Y5.32%
FCF growth 3Y2.27%
FCF growth 5Y6.62%
OCF growth 1Y7.68%
OCF growth 3Y2.48%
OCF growth 5Y7.69%