PRIMERICA INC (PRI)
US74164M1080 - Common Stock
We assign a fundamental rating of 5 out of 10 to PRI. PRI was compared to 140 industry peers in the Insurance industry. While PRI has a great profitability rating, there are quite some 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.
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
PRI has a Return On Assets of 3.82%. This is in the better half of the industry: PRI outperforms 76.26% of its industry peers.
Looking at the Return On Equity, with a value of 27.79%, PRI belongs to the top of the industry, outperforming 94.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.99%, PRI is in the better half of the industry, outperforming 76.26% 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 4.12%.
The last Return On Invested Capital (3.99%) for PRI is above the 3 year average (3.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 27.79% | ||
| ROIC | 3.99% |
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
The Profit Margin of PRI (20.39%) is better than 86.33% of its industry peers.
In the last couple of years the Profit Margin of PRI has grown nicely.
PRI has a Operating Margin of 27.64%. This is amongst the best in the industry. PRI outperforms 87.05% of its industry peers.
In the last couple of years the Operating Margin of PRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.64% | ||
| PM (TTM) | 20.39% | ||
| 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.
PRI has a better debt/assets ratio than last year.
2.2 Solvency
PRI has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as PRI would need 3.01 years to pay back of all of its debts.
PRI has a Debt to FCF ratio (3.01) which is in line with its industry peers.
A Debt/Equity ratio of 0.96 indicates that PRI is somewhat dependend on debt financing.
The Debt to Equity ratio of PRI (0.96) is worse than 83.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC7.37%
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 39.46% 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 16.88% yearly.
PRI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.46%.
The Revenue has been growing by 8.18% on average over the past years. This is quite good.
EPS 1Y (TTM)39.46%
EPS 3Y18.1%
EPS 5Y16.88%
EPS growth Q2Q21.78%
Revenue 1Y (TTM)-17.46%
Revenue growth 3Y8.22%
Revenue growth 5Y8.18%
Revenue growth Q2Q5.74%
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 10.34% yearly.
Based on estimates for the next years, PRI will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y12.56%
EPS Next 2Y11.42%
EPS Next 3Y10.52%
EPS Next 5Y10.34%
Revenue Next Year5.69%
Revenue Next 2Y5.11%
Revenue Next 3Y4.87%
Revenue Next 5Y4.35%
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
Based on the Price/Earnings ratio of 14.01, the valuation of PRI can be described as correct.
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 28.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.45 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 (20.47), we can say PRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 12.45 |
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 70.50% 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 | 11.82 | ||
| EV/EBITDA | 8.47 |
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)1.12
PEG (5Y)0.83
EPS Next 2Y11.42%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, PRI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.28, PRI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, PRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.82%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
16.32% 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.
DP16.32%
EPS Next 2Y11.42%
EPS Next 3Y10.52%
PRIMERICA INC
NYSE:PRI (5/16/2024, 7:12:02 PM)
After market: 224.33 0 (0%)224.33
-1.41 (-0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 12.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 27.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.64% | ||
| PM (TTM) | 20.39% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)39.46%
EPS 3Y18.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.46%
Revenue growth 3Y8.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
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OCF growth 5Y