PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
263.1 USD
-1.28 (-0.48%)
263.1 USD
0 (0%)
PRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. PRI scores excellent on profitability, but there are concerns on its financial health. PRI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRI had positive earnings in the past year.
In the past year PRI had a positive cash flow from operations.
Each year in the past 5 years PRI has been profitable.
PRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRI has a Return On Assets of 4.56%. This is amongst the best in the industry. PRI outperforms 82.31% of its industry peers.
The Return On Equity of PRI (29.32%) is better than 95.92% of its industry peers.
With an excellent Return On Invested Capital value of 4.99%, PRI belongs to the best of the industry, outperforming 80.95% 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 4.46%.
The last Return On Invested Capital (4.99%) for PRI is above the 3 year average (4.51%), which is a sign of increasing profitability.
| 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 92.52% of its industry peers.
In the last couple of years the Profit Margin of PRI has declined.
PRI has a Operating Margin of 30.16%. This is amongst the best in the industry. PRI outperforms 96.60% 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.
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 2.29. 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.
With a Debt to FCF ratio value of 2.29, PRI perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
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 86.39% of the companies in the same industry.
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 | 2.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC7.23%
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.
The Revenue has been growing slightly by 5.93% in the past 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
The Earnings Per Share is expected to grow by 9.29% on average over the next years. This is quite good.
PRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.54% yearly.
EPS Next Y12.93%
EPS Next 2Y11.03%
EPS Next 3Y10.01%
EPS Next 5Y9.29%
Revenue Next Year7.87%
Revenue Next 2Y6.63%
Revenue Next 3Y6.43%
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.
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
With a Price/Earnings ratio of 12.42, PRI is valued correctly.
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 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.04 indicates a reasonable valuation of PRI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, PRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
PRI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRI is cheaper than 63.27% of the companies in the same industry.
PRI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
PRI's 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)0.96
PEG (5Y)0.69
EPS Next 2Y11.03%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
PRI's Dividend Yield is comparable with the industry average which is at 3.26.
Compared to the average S&P500 Dividend Yield of 2.30, PRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 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 2Y11.03%
EPS Next 3Y10.01%
263.1
-1.28 (-0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change0.23%
Ins Owners0.55%
Ins Owner Change-1.65%
Market Cap8.52B
Revenue(TTM)3.16B
Net Income(TTM)676.50M
Analysts70.77
Price Target317.22 (20.57%)
Short Float %3.55%
Short Ratio6.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)1.44%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)2.61%
EPS NY rev (1m)0.41%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.04 | ||
| P/S | 2.7 | ||
| P/FCF | 10.53 | ||
| P/OCF | 10.17 | ||
| P/B | 3.69 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 7.6 |
EPS(TTM)21.19
EY8.05%
EPS(NY)23.83
Fwd EY9.06%
FCF(TTM)24.98
FCFY9.49%
OCF(TTM)25.87
OCFY9.83%
SpS97.57
BVpS71.24
TBVpS69.84
PEG (NY)0.96
PEG (5Y)0.69
Graham Number184.3
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%
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 Turnover0.21
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
WACC7.23%
ROIC/WACC0.69
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 Y12.93%
EPS Next 2Y11.03%
EPS Next 3Y10.01%
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 2Y6.63%
Revenue Next 3Y6.43%
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%
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 5 / 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 12.42 and the Price/Book (PB) ratio is 3.69.
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 12.93% in the next year.