PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
252.63 USD
+2.32 (+0.93%)
252.63 USD
0 (0%)
PRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
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's Return On Assets of 4.56% is amongst the best of the industry. PRI outperforms 82.19% of its industry peers.
Looking at the Return On Equity, with a value of 29.32%, PRI belongs to the top of the industry, outperforming 96.58% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.99%, PRI belongs to the best of the industry, outperforming 80.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRI is in line with the industry average of 4.53%.
The 3 year average ROIC (4.51%) for PRI is below the current ROIC(4.99%), indicating increased profibility in the last year.
| 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
The Profit Margin of PRI (21.41%) is better than 92.47% of its industry peers.
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 97.26% of its industry peers.
In the last couple of years the Operating Margin of PRI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 in line with its industry peers.
A Debt/Equity ratio of 0.80 indicates that PRI is somewhat dependend on debt financing.
The Debt to Equity ratio of PRI (0.80) is worse 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 | 2.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC7.26%
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 quite strong growth in Revenue. The Revenue has grown by 9.71% 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)9.71%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%12.73%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
PRI is valuated reasonably with a Price/Earnings ratio of 11.57.
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 (25.83), we can say PRI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.59 indicates a reasonable 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 32.68. PRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRI is valued a bit cheaper than the industry average as 63.01% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| EV/EBITDA | 7.28 |
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.
The decent profitability rating of PRI may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)0.64
EPS Next 2Y11.09%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 3.33, PRI has a dividend in line with its industry peers.
PRI's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of PRI grows each year by 19.20%, which is quite nice.
PRI has paid a dividend for at least 10 years, which is 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
19.17% 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.
DP19.17%
EPS Next 2Y11.09%
EPS Next 3Y10.19%
252.63
+2.32 (+0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change0.49%
Ins Owners0.55%
Ins Owner Change-1.65%
Market Cap8.18B
Revenue(TTM)3.09B
Net Income(TTM)676.50M
Analysts70.77
Price Target318.09 (25.91%)
Short Float %3.55%
Short Ratio6.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)1.25%
PT rev (3m)1.72%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)2.69%
EPS NY rev (1m)0.41%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 10.59 | ||
| P/S | 2.59 | ||
| P/FCF | 10.11 | ||
| P/OCF | 9.77 | ||
| P/B | 3.55 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)21.84
EY8.65%
EPS(NY)23.86
Fwd EY9.44%
FCF(TTM)24.98
FCFY9.89%
OCF(TTM)25.87
OCFY10.24%
SpS97.57
BVpS71.24
TBVpS69.84
PEG (NY)0.89
PEG (5Y)0.64
Graham Number187.11
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%
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 Turnover0.21
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
WACC7.26%
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 Y12.99%
EPS Next 2Y11.09%
EPS Next 3Y10.19%
EPS Next 5Y9.65%
Revenue 1Y (TTM)9.71%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%12.73%
Revenue Next Year8.1%
Revenue Next 2Y6.94%
Revenue Next 3Y6.45%
Revenue Next 5Y5.22%
EBIT growth 1Y-28.26%
EBIT growth 3Y8.3%
EBIT growth 5Y13.71%
EBIT Next Year2.1%
EBIT Next 3Y2.82%
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%
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 11.57 and the Price/Book (PB) ratio is 3.55.
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.