PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRI - US74164M1080 - Common Stock
267.56 USD
+4.03 (+1.53%)
267.56 USD
0 (0%)
PRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. PRI scores excellent on profitability, 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.
Each year in the past 5 years PRI has 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 4.84%, PRI belongs to the best of the industry, outperforming 81.76% of the companies in the same industry.
PRI's Return On Equity of 31.31% is amongst the best of the industry. PRI outperforms 97.30% of its industry peers.
With a decent Return On Invested Capital value of 5.08%, PRI is doing good in the industry, outperforming 78.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PRI is significantly below the industry average of 14.93%.
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
With an excellent Profit Margin value of 22.28%, PRI belongs to the best 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.
The Operating Margin of PRI (30.07%) is better than 92.57% of its industry peers.
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
PRI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PRI has less shares outstanding
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.
Looking at the Debt to FCF ratio, with a value of 2.26, PRI is in line with its industry, outperforming 50.68% of the companies in the same 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 86.49% 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/WACC0.69
WACC7.37%
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.
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
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.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
Based on the Price/Earnings ratio of 12.25, the valuation of PRI can be described as correct.
PRI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PRI to the average of the S&P500 Index (27.19), we can say PRI is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.09, the valuation of PRI can be described as very reasonable.
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 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 11.09 |
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 66.22% 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 | 10.5 | ||
| EV/EBITDA | 7.35 |
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)0.75
PEG (5Y)0.68
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
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 18.50% 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.
DP18.5%
EPS Next 2Y11.74%
EPS Next 3Y10.88%
267.56
+4.03 (+1.53%)
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 Cap8.54B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price Target308.91 (15.45%)
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 | 12.25 | ||
| Fwd PE | 11.09 | ||
| P/S | 2.65 | ||
| P/FCF | 10.5 | ||
| P/OCF | 10.25 | ||
| P/B | 3.72 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)21.84
EY8.16%
EPS(NY)24.13
Fwd EY9.02%
FCF(TTM)25.49
FCFY9.53%
OCF(TTM)26.11
OCFY9.76%
SpS101.07
BVpS71.93
TBVpS70.51
PEG (NY)0.75
PEG (5Y)0.68
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
WACC7.37%
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 12.25 and the Price/Book (PB) ratio is 3.72.
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.