PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
278.99 USD
+0.67 (+0.24%)
278.99 USD
0 (0%)
Overall PRI gets a fundamental rating of 5 out of 10. We evaluated PRI against 146 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
With an excellent Return On Assets value of 4.56%, PRI belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
The Return On Equity of PRI (29.32%) is better than 95.89% of its industry peers.
The Return On Invested Capital of PRI (4.99%) is better than 81.51% of its industry peers.
PRI had an Average Return On Invested Capital over the past 3 years of 4.51%. This is in line with the industry average of 4.43%.
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 has a Profit Margin of 21.41%. This is amongst the best in the industry. PRI outperforms 92.47% of its industry peers.
In the last couple of years the Profit Margin of PRI has declined.
With an excellent Operating Margin value of 30.16%, PRI belongs to the best of the industry, outperforming 96.58% of the companies in the same industry.
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.
PRI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRI has less shares outstanding
PRI has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PRI is 2.29, which is a good value as it means it would take PRI, 2.29 years of fcf income to pay off 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 52.05% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that PRI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, PRI is doing worse than 86.99% of the companies in the same industry.
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
WACC7.39%
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.
Measured over the past years, PRI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.05% on average per year.
Looking at the last year, PRI shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
The Revenue has been growing by 8.51% on average over the past years. This is quite good.
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
PRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.29% yearly.
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
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 correctly with a Price/Earnings ratio of 13.17.
PRI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.86, PRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.83, the valuation of PRI can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as PRI.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, PRI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
62.33% of the companies in the same industry are more expensive than PRI, based on the Enterprise Value to EBITDA ratio.
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 | 11.17 | ||
| EV/EBITDA | 8 |
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)1.06
PEG (5Y)0.73
EPS Next 2Y10.45%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
PRI's Dividend Yield is comparable with the industry average which is at 3.38.
PRI's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of PRI is nicely growing with an annual growth rate of 19.20%!
PRI has paid a dividend for at least 10 years, which is 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
19.17% 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.
DP19.17%
EPS Next 2Y10.45%
EPS Next 3Y9.45%
278.99
+0.67 (+0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change-4.31%
Ins Owners0.55%
Ins Owner Change-1.65%
Market Cap9.04B
Analysts70.77
Price Target317.22 (13.7%)
Short Float %3.85%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)3.23%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)3.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.83 | ||
| P/S | 2.86 | ||
| P/FCF | 11.17 | ||
| P/OCF | 10.78 | ||
| P/B | 3.92 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 8 |
EPS(TTM)21.19
EY7.6%
EPS(NY)23.58
Fwd EY8.45%
FCF(TTM)24.98
FCFY8.95%
OCF(TTM)25.87
OCFY9.27%
SpS97.57
BVpS71.24
TBVpS69.84
PEG (NY)1.06
PEG (5Y)0.73
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
WACC7.39%
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%