PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
254.05 USD
+0.06 (+0.02%)
254.05 USD
0 (0%)
Overall PRI gets a fundamental rating of 5 out of 10. We evaluated PRI against 146 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 has a correct valuation and a medium 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.
In the past 5 years PRI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PRI (4.84%) is better than 83.56% of its industry peers.
Looking at the Return On Equity, with a value of 31.31%, PRI belongs to the top of the industry, outperforming 96.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.08%, PRI belongs to the top of the industry, outperforming 80.14% of the companies in the same industry.
PRI had an Average Return On Invested Capital over the past 3 years of 4.51%. This is in line with the industry average of 4.51%.
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 91.78% 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 96.58% of the companies in the same industry.
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
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.
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.
PRI has a Debt to FCF ratio of 2.26. This is comparable to the rest of the industry: PRI outperforms 52.05% of its industry peers.
PRI has a Debt/Equity ratio of 0.80. This is a neutral value indicating PRI is somewhat dependend on debt financing.
PRI has a worse Debt to Equity ratio (0.80) than 86.30% 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 | 2.26 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC7.26%
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 nice 17.74% 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.
PRI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.89%.
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 9.65% on average over the next years. This is quite good.
Based on estimates for the next years, PRI will show a small growth in Revenue. The Revenue will grow by 5.22% on average per year.
EPS Next Y12.99%
EPS Next 2Y11.09%
EPS Next 3Y10.19%
EPS Next 5Y9.65%
Revenue Next Year8.1%
Revenue Next 2Y6.94%
Revenue Next 3Y6.45%
Revenue Next 5Y5.22%
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.
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
Based on the Price/Earnings ratio of 11.63, the valuation of PRI can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as PRI.
PRI is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.65, which indicates a very decent 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 (34.59), we can say PRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.65 |
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 64.38% 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 | 10.11 | ||
| EV/EBITDA | 7.21 |
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)0.9
PEG (5Y)0.64
EPS Next 2Y11.09%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 3.47, PRI has a dividend in line with its industry peers.
PRI's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| 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 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
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 2Y11.09%
EPS Next 3Y10.19%
254.05
+0.06 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change0.16%
Ins Owners0.55%
Ins Owner Change-1.65%
Market Cap8.23B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price Target318.09 (25.21%)
Short Float %3.55%
Short Ratio6.61
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)0.28%
PT rev (3m)1.49%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)0.46%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.65 | ||
| P/S | 2.55 | ||
| P/FCF | 10.11 | ||
| P/OCF | 9.87 | ||
| P/B | 3.58 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)21.84
EY8.6%
EPS(NY)23.86
Fwd EY9.39%
FCF(TTM)25.12
FCFY9.89%
OCF(TTM)25.74
OCFY10.13%
SpS99.6
BVpS70.88
TBVpS69.48
PEG (NY)0.9
PEG (5Y)0.64
Graham Number186.63
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
WACC7.26%
ROIC/WACC0.7
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 Y12.99%
EPS Next 2Y11.09%
EPS Next 3Y10.19%
EPS Next 5Y9.65%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%12.86%
Revenue Next Year8.1%
Revenue Next 2Y6.94%
Revenue Next 3Y6.45%
Revenue Next 5Y5.22%
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 11.63 and the Price/Book (PB) ratio is 3.58.
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 12.99% in the next year.