NYSE:PRI

Stock Analysis Report

Executive Summary

Primerica, Inc., together with its subsidiaries, provides financial products to middle income households in the United States and Canada.

Snowflake

Fundamentals

Proven track record and fair value.


Similar Companies

Share Price & News

How has Primerica's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

NYSE:PRI

-2.3%

US Insurance

-1.6%

US Market


1 Year Return

-4.0%

NYSE:PRI

5.6%

US Insurance

-3.0%

US Market

PRI underperformed the Insurance industry which returned 5.6% over the past year.

PRI underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

PRIIndustryMarket
7 Day-0.7%-2.3%-1.6%
30 Day-8.3%-5.9%-5.7%
90 Day-4.6%-0.6%0.2%
1 Year-2.9%-4.0%8.1%5.6%-0.8%-3.0%
3 Year106.9%100.8%40.6%30.0%38.1%29.1%
5 Year141.1%127.9%60.5%41.5%50.8%34.1%

Price Volatility Vs. Market

How volatile is Primerica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Primerica undervalued based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Primerica's share price is below the future cash flow value, and at a moderate discount (> 20%).

Primerica's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Primerica is good value based on earnings compared to the US Insurance industry average.

Primerica is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Primerica is poor value based on expected growth next year.


Price Based on Value of Assets

Primerica is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Primerica expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Primerica's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Primerica's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

Primerica's revenue growth is positive but not above the United States of America market average.

Primerica's earnings growth is positive but not above the United States of America market average.

Primerica's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Primerica will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Primerica performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Primerica's year on year earnings growth rate has been positive over the past 5 years.

Primerica's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Primerica's 1-year earnings growth is negative, it can't be compared to the US Insurance industry average.


Return on Equity

Primerica has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Primerica used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Primerica has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Primerica's financial position?


Financial Position Analysis

Primerica is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Primerica's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Primerica's level of debt (94.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (36.1% vs 94.9% today).

Debt is well covered by operating cash flow (33.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.2x debt.


Next Steps

Dividend

What is Primerica's current dividend yield, its reliability and sustainability?

1.26%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Primerica's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Primerica's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Whilst dividend payments have been stable, Primerica has been paying a dividend for less than 10 years.

Dividend payments have increased, but Primerica only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6x coverage).


Next Steps

Management

What is the CEO of Primerica's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Glenn Williams (60yo)

4.3yrs

Tenure

US$5,145,317

Compensation

Mr. Glenn Jackson Williams has been the Chief Executive Officer of Primerica, Inc. since April 2015 and also serves as its Director. Mr. Williams served as the President of Primerica, Inc. from 2005 to Apr ...


CEO Compensation Analysis

Glenn's remuneration is about average for companies of similar size in United States of America.

Glenn's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

The tenure for the Primerica management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

62.5yo

Average Age

The tenure for the Primerica board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$38,51315 Mar 19
P. Benson
EntityIndividual
Role
Lead Director
Lead Director
Shares312
Max PriceUS$123.44
SellUS$399,14015 Mar 19
John Addison
EntityIndividual
Role
Unit Chairman
Director
Shares3,249
Max PriceUS$122.85
SellUS$614,26515 Mar 19
William Kelly
EntityIndividual
Role
Unit CEO
Chief Executive Officer of PFS Investments Inc.
Shares5,000
Max PriceUS$122.85
BuyUS$19,86925 Jan 19
Alison Rand
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares294.86
Max PriceUS$125.00
SellUS$229,84814 Sep 18
Barbara Yastine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,846
Max PriceUS$124.51
SellUS$38,36207 Sep 18
P. Benson
EntityIndividual
Role
Lead Director
Lead Director
Shares311
Max PriceUS$123.35
SellUS$299,46507 Sep 18
Gregory Pitts
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares2,449
Max PriceUS$122.28

Ownership Breakdown


Management Team

  • Ben Rogers (54yo)

    Executive VP & General Counsel

    • Tenure: 0.6yrs
  • Jeffrey Fendler (62yo)

    Executive VP and Chief Compliance & Risk Officer

    • Tenure: 5.5yrs
  • Alison Rand (51yo)

    Executive VP & CFO

    • Tenure: 19.6yrs
    • Compensation: US$2.06m
  • Peter Schneider (63yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$3.00m
  • Glenn Williams (60yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$5.15m
  • Gregory Pitts (56yo)

    Executive VP & COO

    • Tenure: 9.7yrs
    • Compensation: US$1.97m
  • William Kelly (63yo)

    Chief Executive Officer of PFS Investments Inc.

    • Tenure: 1.6yrs
    • Compensation: US$1.31m
  • Michael Adams (62yo)

    Executive VP & Chief Business Technology Officer

    • Tenure: 9.3yrs
  • Nicole Russell

    Senior Vice President of Investor Relations

    • Tenure: 0.7yrs
  • Bobby Peterman (53yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 1.2yrs

Board Members

  • Gary Crittenden (66yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$201.93k
  • John Addison (62yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$275.59k
  • Cynthia Day (53yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$195.59k
  • Barbara Yastine (60yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$190.59k
  • P. Benson (72yo)

    Lead Director

    • Tenure: 5.5yrs
    • Compensation: US$225.59k
  • Joel Babbit (65yo)

    Director

    • Tenure: 8.0yrs
    • Compensation: US$185.59k
  • Beatriz Perez (49yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$185.59k
  • Rick Williams (63yo)

    Non-Executive Chairman of the Board

    • Tenure: 9.8yrs
    • Compensation: US$275.59k
  • Glenn Williams (60yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$5.15m
  • C. Chambliss (75yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$103.95k

Company Information

Primerica, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Primerica, Inc.
  • Ticker: PRI
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$4.805b
  • Shares outstanding: 41.88m
  • Website: https://www.primerica.com

Number of Employees


Location

  • Primerica, Inc.
  • 1 Primerica Parkway
  • Duluth
  • Georgia
  • 30099
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRINYSE (New York Stock Exchange)YesVoting Common StockUSUSDApr 2010
PI7DB (Deutsche Boerse AG)YesVoting Common StockDEEURApr 2010

Biography

Primerica, Inc., together with its subsidiaries, provides financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Invest ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:21
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.