PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRI - US74164M1080 - Common Stock
257.32 USD
-0.85 (-0.33%)
257.32 USD
0 (0%)
Overall PRI gets a fundamental rating of 5 out of 10. We evaluated PRI against 148 industry peers in the Insurance industry. PRI scores excellent on profitability, 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
PRI had positive earnings in the past year.
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 80.41% of its industry peers.
PRI has a Return On Equity of 31.31%. This is amongst the best in the industry. PRI outperforms 95.95% of its industry peers.
PRI has a Return On Invested Capital of 5.08%. This is in the better half of the industry: PRI outperforms 79.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRI is in line with the industry average of 4.57%.
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
With an excellent Profit Margin value of 22.28%, PRI belongs to the best of the industry, outperforming 91.22% of the companies in the same industry.
PRI's Profit Margin has declined in the last couple of years.
PRI has a Operating Margin of 30.07%. This is amongst the best in the industry. PRI outperforms 95.27% of its industry peers.
PRI's Operating Margin has improved in the last couple of years.
| 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.
PRI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRI has less shares outstanding
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 2.26. This is a good value and a sign of high solvency as PRI would need 2.26 years to pay back of all of its debts.
PRI's Debt to FCF ratio of 2.26 is in line compared to the rest of the industry. PRI outperforms 50.68% of 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 86.49% 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/WACC0.7
WACC7.21%
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.
The Earnings Per Share has been growing by 18.05% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.89% in the past 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
The Earnings Per Share is expected to grow by 10.13% 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 5.31% on average per year.
EPS Next Y12.99%
EPS Next 2Y11.09%
EPS Next 3Y10.19%
EPS Next 5Y10.13%
Revenue Next Year8.1%
Revenue Next 2Y6.94%
Revenue Next 3Y6.45%
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
With a Price/Earnings ratio of 11.78, the valuation of PRI can be described as very reasonable.
PRI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. PRI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.79, the valuation of PRI can be described as very reasonable.
PRI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, PRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRI is valued a bit cheaper than the industry average as 63.51% of the companies are valued more expensively.
PRI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.1 | ||
| EV/EBITDA | 7.2 |
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)0.91
PEG (5Y)0.65
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 3.32, PRI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, PRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 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 2Y11.09%
EPS Next 3Y10.19%
257.32
-0.85 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change-1.56%
Ins Owners0.55%
Ins Owner Change-2.8%
Market Cap8.21B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price Target310.95 (20.84%)
Short Float %3.38%
Short Ratio5.93
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)-1.98%
PT rev (3m)-1.02%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.79 | ||
| P/S | 2.55 | ||
| P/FCF | 10.1 | ||
| P/OCF | 9.85 | ||
| P/B | 3.58 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)21.84
EY8.49%
EPS(NY)23.86
Fwd EY9.27%
FCF(TTM)25.49
FCFY9.9%
OCF(TTM)26.11
OCFY10.15%
SpS101.07
BVpS71.93
TBVpS70.51
PEG (NY)0.91
PEG (5Y)0.65
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
WACC7.21%
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 5Y10.13%
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 5Y5.31%
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 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 11.78 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.