PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
272.14 USD
+5.56 (+2.09%)
272.14 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRI. PRI was compared to 145 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
In the past year PRI was profitable.
In the past year PRI had a positive cash flow from operations.
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
PRI's Return On Assets of 4.56% is amongst the best of the industry. PRI outperforms 82.76% of its industry peers.
PRI has a better Return On Equity (29.32%) than 96.55% of its industry peers.
PRI has a better Return On Invested Capital (4.99%) than 81.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRI is in line with the industry average of 4.40%.
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
PRI's Profit Margin of 21.41% is amongst the best of the industry. PRI outperforms 93.10% of its industry peers.
PRI's Profit Margin has declined in the last couple of years.
The Operating Margin of PRI (30.16%) is better than 96.55% of its industry peers.
PRI's Operating Margin has improved in the last couple of years.
| 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
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
PRI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRI has been reduced compared to a year ago.
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 of 2.29. This is comparable to the rest of the industry: PRI outperforms 51.72% 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's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. PRI is outperformed by 86.90% of its industry peers.
Even though the debt/equity ratio score it not favorable for PRI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC7.3%
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 impressive 23.56% over the past year.
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 5.93% 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)23.56%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%15.92%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%-1.25%
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 9.29% on average per year.
Based on estimates for the next years, PRI will show a small growth in Revenue. The Revenue will grow by 5.54% on average per year.
EPS Next Y12.47%
EPS Next 2Y10.45%
EPS Next 3Y9.45%
EPS Next 5Y9.29%
Revenue Next Year7.87%
Revenue Next 2Y6.74%
Revenue Next 3Y6.55%
Revenue Next 5Y5.54%
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.
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
A Price/Earnings ratio of 12.84 indicates a correct valuation of PRI.
Compared to the rest of the industry, the Price/Earnings ratio of PRI is on the same level as its industry peers.
PRI is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.54, the valuation of PRI can be described as very reasonable.
PRI's Price/Forward Earnings is on the same level as the industry average.
PRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
61.38% of the companies in the same industry are more expensive than PRI, based on the Enterprise Value to EBITDA ratio.
PRI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.89 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
PRI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PRI may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)0.71
EPS Next 2Y10.45%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, PRI has a reasonable but not impressive dividend return.
PRI's Dividend Yield is comparable with the industry average which is at 3.54.
PRI's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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 19.17% 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.
DP19.17%
EPS Next 2Y10.45%
EPS Next 3Y9.45%
272.14
+5.56 (+2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change0.02%
Ins Owners0.55%
Ins Owner Change-1.65%
Market Cap8.81B
Analysts70.77
Price Target317.22 (16.57%)
Short Float %3.85%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)0.97%
PT rev (3m)2.11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.54 | ||
| P/S | 2.79 | ||
| P/FCF | 10.89 | ||
| P/OCF | 10.52 | ||
| P/B | 3.82 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)21.19
EY7.79%
EPS(NY)23.58
Fwd EY8.66%
FCF(TTM)24.98
FCFY9.18%
OCF(TTM)25.87
OCFY9.51%
SpS97.57
BVpS71.24
TBVpS69.84
PEG (NY)1.03
PEG (5Y)0.71
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%
ROICexcg growth 3Y11.32%
ROICexcg 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
WACC7.3%
ROIC/WACC0.68
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)23.56%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%15.92%
EPS Next Y12.47%
EPS Next 2Y10.45%
EPS Next 3Y9.45%
EPS Next 5Y9.29%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%-1.25%
Revenue Next Year7.87%
Revenue Next 2Y6.74%
Revenue Next 3Y6.55%
Revenue Next 5Y5.54%
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%