PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
274.23 USD
-0.17 (-0.06%)
274.23 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRI. PRI was compared to 146 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.
PRI had a positive operating cash flow in the past year.
In the past 5 years PRI has always been profitable.
PRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRI has a better Return On Assets (4.56%) than 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 81.51% 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 4.47%.
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 better Profit Margin (21.41%) than 93.84% of its industry peers.
PRI's Profit Margin has declined in the last couple of years.
PRI has a Operating Margin of 30.16%. This is amongst the best in the industry. PRI outperforms 96.58% 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
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.
PRI has a better debt/assets ratio than last year.
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 50.00% 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 has a worse Debt to Equity ratio (0.80) than 86.99% 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
WACC7.31%
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 23.56%, which is quite impressive.
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.
PRI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
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 Y12.55%
EPS Next 2Y10.55%
EPS Next 3Y9.69%
EPS Next 5Y9.29%
Revenue Next Year7.7%
Revenue Next 2Y6.54%
Revenue Next 3Y5.96%
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 12.94.
Compared to the rest of the industry, the Price/Earnings ratio of PRI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PRI is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.61, the valuation of PRI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRI is on the same level as its industry peers.
PRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.61 |
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 62.33% 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 | 10.98 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
The 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)0.72
EPS Next 2Y10.55%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, PRI has a dividend in line with its industry peers.
PRI's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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.
The dividend of PRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.17%
EPS Next 2Y10.55%
EPS Next 3Y9.69%
274.23
-0.17 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change-4.3%
Ins Owners0.55%
Ins Owner Change-1.73%
Market Cap8.88B
Analysts71.43
Price Target314.16 (14.56%)
Short Float %3.57%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)0.23%
PT rev (3m)2.47%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)3.2%
EPS NY rev (1m)2.94%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.61 | ||
| P/S | 2.81 | ||
| P/FCF | 10.98 | ||
| P/OCF | 10.6 | ||
| P/B | 3.85 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)21.19
EY7.73%
EPS(NY)23.63
Fwd EY8.62%
FCF(TTM)24.98
FCFY9.11%
OCF(TTM)25.87
OCFY9.43%
SpS97.57
BVpS71.24
TBVpS69.84
PEG (NY)1.03
PEG (5Y)0.72
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
WACC7.31%
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 Y12.55%
EPS Next 2Y10.55%
EPS Next 3Y9.69%
EPS Next 5Y9.29%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%-1.25%
Revenue Next Year7.7%
Revenue Next 2Y6.54%
Revenue Next 3Y5.96%
Revenue Next 5Y5.54%
EBIT growth 1Y-28.26%
EBIT growth 3Y8.3%
EBIT growth 5Y13.71%
EBIT Next Year-9.11%
EBIT Next 3YN/A
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%