PRIMERICA INC (PRI) Stock Fundamental Analysis
USA - NYSE:PRI - US74164M1080 - Common Stock
257.89 USD
+2.85 (+1.12%)
Taking everything into account, PRI scores 5 out of 10 in our fundamental rating. PRI was compared to 147 industry peers in the Insurance industry. While PRI belongs to the best of the industry regarding profitability, 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.
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 83.67% of its industry peers.
PRI has a better Return On Equity (31.31%) than 97.28% of its industry peers.
The Return On Invested Capital of PRI (5.08%) is better than 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRI is in line with the industry average of 4.44%.
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
Looking at the Profit Margin, with a value of 22.28%, PRI belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Profit Margin of PRI has declined.
PRI's Operating Margin of 30.07% is amongst the best of 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 | 30.07% | ||
| 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.
The number of shares outstanding for PRI has been reduced compared to 1 year ago.
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
The Debt to FCF ratio of PRI is 2.26, which is a good value as it means it would take PRI, 2.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PRI (2.26) is comparable to the rest of the industry.
PRI has a Debt/Equity ratio of 0.80. This is a neutral value indicating PRI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, PRI is not doing good in the industry: 86.39% of the companies in the same industry are doing better.
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
WACC7.29%
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.
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 5.89%.
Measured over the past years, PRI shows a quite strong growth in Revenue. The Revenue has been growing by 8.51% on average per year.
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
PRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.65% yearly.
The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y12.99%
EPS Next 2Y11.09%
EPS Next 3Y10.19%
EPS Next 5Y9.65%
Revenue Next Year8.1%
Revenue Next 2Y6.94%
Revenue Next 3Y6.45%
Revenue Next 5Y5.22%
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 11.81, the valuation of PRI can be described as very reasonable.
PRI's Price/Earnings ratio is in line with the industry average.
PRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.56.
With a Price/Forward Earnings ratio of 10.81, the valuation of PRI can be described as very reasonable.
PRI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.62. PRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 10.81 |
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 63.27% 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 | 10.27 | ||
| EV/EBITDA | 7.24 |
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)0.91
PEG (5Y)0.65
EPS Next 2Y11.09%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
PRI has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.51, PRI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, PRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
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%
NYSE:PRI (11/18/2025, 12:30:42 PM)
257.89
+2.85 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change-1.49%
Ins Owners0.55%
Ins Owner Change-6.92%
Market Cap8.35B
Revenue(TTM)3.23B
Net Income(TTM)718.85M
Analysts70.77
Price Target318.09 (23.34%)
Short Float %3.38%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)0.28%
PT rev (3m)1.49%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)0.46%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 10.81 | ||
| P/S | 2.59 | ||
| P/FCF | 10.27 | ||
| P/OCF | 10.02 | ||
| P/B | 3.64 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)21.84
EY8.47%
EPS(NY)23.86
Fwd EY9.25%
FCF(TTM)25.12
FCFY9.74%
OCF(TTM)25.74
OCFY9.98%
SpS99.6
BVpS70.88
TBVpS69.48
PEG (NY)0.91
PEG (5Y)0.65
Graham Number186.63
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
WACC7.29%
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 5Y9.65%
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 5Y5.22%
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 11.81 and the Price/Book (PB) ratio is 3.64.
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.