PRIMERICA INC (PRI) Stock Fundamental Analysis
NYSE:PRI - New York Stock Exchange, Inc. - US74164M1080 - Common Stock - Currency: USD
Overall PRI gets a fundamental rating of 5 out of 10. We evaluated PRI against 143 industry peers in the Insurance industry. PRI has an excellent profitability rating, 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
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.
Each year in the past 5 years PRI had a positive operating cash flow.
1.2 Ratios
PRI's Return On Assets of 4.37% is amongst the best of the industry. PRI outperforms 83.92% of its industry peers.
PRI has a Return On Equity of 28.24%. This is amongst the best in the industry. PRI outperforms 95.10% of its industry peers.
The Return On Invested Capital of PRI (7.74%) is better than 89.51% 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 4.13%.
The 3 year average ROIC (4.51%) for PRI is below the current ROIC(7.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 28.24% | ||
| ROIC | 7.74% |
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
The Profit Margin of PRI (20.10%) is better than 88.81% of its industry peers.
In the last couple of years the Profit Margin of PRI has declined.
With an excellent Operating Margin value of 45.61%, PRI belongs to the best of the industry, outperforming 97.20% 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 | 45.61% | ||
| PM (TTM) | 20.1% | ||
| 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) just above the Cost of Capital (WACC), PRI is creating some value.
Compared to 1 year ago, PRI has less shares outstanding
PRI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRI has an improved debt to assets ratio.
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 45.45% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that PRI is somewhat dependend on debt financing.
PRI's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. PRI is outperformed by 87.41% 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 | 0.83 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | N/A |
ROIC/WACC1.01
WACC7.67%
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 24.41%, 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.
Looking at the last year, PRI shows a quite strong growth in Revenue. The Revenue has grown by 10.53% 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)24.41%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%28.39%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%8.52%
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 9.49% yearly.
Based on estimates for the next years, PRI will show a small growth in Revenue. The Revenue will grow by 5.33% on average per year.
EPS Next Y9.01%
EPS Next 2Y8.94%
EPS Next 3Y8.88%
EPS Next 5Y9.49%
Revenue Next Year5.7%
Revenue Next 2Y5.46%
Revenue Next 3Y5.84%
Revenue Next 5Y5.33%
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 13.04.
PRI's Price/Earnings ratio is in line with the industry average.
PRI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
Based on the Price/Forward Earnings ratio of 11.62, the valuation of PRI can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as PRI.
PRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
PRI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRI is cheaper than 76.22% of the companies 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 | 10.69 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
PRI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)0.72
EPS Next 2Y8.94%
EPS Next 3Y8.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, PRI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.23, PRI has a dividend in line with its industry peers.
PRI's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
On average, the dividend of PRI grows each year by 19.20%, which is quite nice.
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
19.03% of the earnings are spent on dividend by PRI. This is a low number and sustainable payout ratio.
The dividend of PRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.03%
EPS Next 2Y8.94%
EPS Next 3Y8.88%
266.57
-2.01 (-0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change3.82%
Ins Owners0.52%
Ins Owner Change3.58%
Market Cap8.76B
Analysts69.23
Price Target303.96 (14.03%)
Short Float %3.32%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend3.3
Dividend Growth(5Y)19.2%
DP19.03%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.93%
Min EPS beat(2)-0.09%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)6.42%
Min EPS beat(4)-0.09%
Max EPS beat(4)17.62%
EPS beat(8)5
Avg EPS beat(8)3.37%
EPS beat(12)7
Avg EPS beat(12)3.35%
EPS beat(16)8
Avg EPS beat(16)1.03%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)1.46%
Max Revenue beat(2)1.53%
Revenue beat(4)3
Avg Revenue beat(4)2.01%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)6.21%
Revenue beat(8)4
Avg Revenue beat(8)0.42%
Revenue beat(12)5
Avg Revenue beat(12)7.83%
Revenue beat(16)8
Avg Revenue beat(16)5.95%
PT rev (1m)-4.97%
PT rev (3m)-5.82%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-1.3%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 11.62 | ||
| P/S | 2.76 | ||
| P/FCF | 10.69 | ||
| P/OCF | 10.32 | ||
| P/B | 3.88 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)20.44
EY7.67%
EPS(NY)22.94
Fwd EY8.61%
FCF(TTM)24.93
FCFY9.35%
OCF(TTM)25.83
OCFY9.69%
SpS96.48
BVpS68.67
TBVpS67.29
PEG (NY)1.45
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 28.24% | ||
| ROCE | 10.1% | ||
| ROIC | 7.74% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 9.99% | ||
| OM | 45.61% | ||
| PM (TTM) | 20.1% | ||
| GM | N/A | ||
| FCFM | 25.84% |
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-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 9.08% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.9% | ||
| Profit Quality | 128.54% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.67%
ROIC/WACC1.01
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)24.41%
EPS 3Y18.52%
EPS 5Y18.05%
EPS Q2Q%28.39%
EPS Next Y9.01%
EPS Next 2Y8.94%
EPS Next 3Y8.88%
EPS Next 5Y9.49%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y4.46%
Revenue growth 5Y8.51%
Sales Q2Q%8.52%
Revenue Next Year5.7%
Revenue Next 2Y5.46%
Revenue Next 3Y5.84%
Revenue Next 5Y5.33%
EBIT growth 1Y82.89%
EBIT growth 3Y8.3%
EBIT growth 5Y13.71%
EBIT Next Year-9.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y18.14%
FCF growth 3Y9.62%
FCF growth 5Y11.4%
OCF growth 1Y17.98%
OCF growth 3Y9.48%
OCF growth 5Y12.17%