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 Analysis

Proven track record average dividend payer.


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

Stable Share Price: PRI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.5%

PRI

-1.4%

US Insurance

-1.1%

US Market


1 Year Return

-33.2%

PRI

-22.6%

US Insurance

-13.6%

US Market

Return vs Industry: PRI underperformed the US Insurance industry which returned -22.6% over the past year.

Return vs Market: PRI underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

PRIIndustryMarket
7 Day-4.5%-1.4%-1.1%
30 Day-25.5%-26.4%-17.8%
90 Day-36.1%-31.4%-22.5%
1 Year-32.5%-33.2%-20.7%-22.6%-11.9%-13.6%
3 Year5.0%1.9%-9.1%-16.2%12.1%4.9%
5 Year77.3%67.6%14.1%0.2%30.5%16.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRI ($84.16) is trading below our estimate of fair value ($198.84)

Significantly Below Fair Value: PRI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRI is poor value based on its PE Ratio (9.7x) compared to the Insurance industry average (8.7x).

PE vs Market: PRI is good value based on its PE Ratio (9.7x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: PRI is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: PRI is overvalued based on its PB Ratio (2.1x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRI's forecast earnings growth (3.3% per year) is above the savings rate (1.7%).

Earnings vs Market: PRI's earnings (3.3% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: PRI's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRI's revenue (4.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PRI's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRI's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Primerica performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRI has high quality earnings.

Growing Profit Margin: PRI's current net profit margins (17.4%) are higher than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: PRI's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: PRI's earnings growth over the past year (13.2%) is below its 5-year average (17.9% per year).

Earnings vs Industry: PRI earnings growth over the past year (13.2%) underperformed the Insurance industry 43.7%.


Return on Equity

High ROE: PRI's Return on Equity (22.2%) is considered high.


Next Steps

Financial Health

How is Primerica's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PRI has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRI's debt is covered by short term assets (assets are 3.2x debt).


Financial Institutions Analysis

Asset Level: PRI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PRI has a sufficient allowance for bad loans.

Low Risk Liabilities: PRI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PRI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PRI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PRI has an appropriate level of bad loans.


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRI's dividend (1.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).

High Dividend: PRI's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (5.56%).


Stability and Growth of Payments

Stable Dividend: PRI's dividends per share have been stable in the past 10 years.

Growing Dividend: PRI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.4%), PRI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRI's dividends in 3 years are forecast to be well covered by earnings (17.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Glenn Williams (60yo)

5s

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

Compensation vs Market: Glenn's total compensation ($USD5.15M) is about average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Williams
CEO & Director5yrsUS$5.15m0.18% $6.2m
Peter Schneider
President5yrsUS$3.00m0.080% $2.7m
Alison Rand
Executive VP & CFO20.25yrsUS$2.06m0.046% $1.6m
Gregory Pitts
Executive VP & COO10.33yrsUS$1.97m0.047% $1.6m
William Kelly
Co-Head of Business Technology2.33yrsUS$1.31m0.044% $1.5m
Michael Adams
Executive VP & Chief Business Technology Officer10yrsno datano data
Nicole Russell
Senior Vice President of Investor Relations1.33yrsno datano data
Jeffrey Fendler
Executive VP and Chief Compliance & Risk Officer6.17yrsno datano data
Brett Rogers
Executive VP & General Counsel1.25yrsno datano data
Robert Peterman
Executive VP & Chief Marketing Officer1.83yrsno datano data

5.0yrs

Average Tenure

60yo

Average Age

Experienced Management: PRI's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Williams
CEO & Director5yrsUS$5.15m0.18% $6.2m
Gary Crittenden
Independent Director6.75yrsUS$201.93k0.037% $1.3m
John Addison
Director10.5yrsUS$275.59k0.047% $1.6m
Cynthia Day
Independent Director6.25yrsUS$195.59k0.026% $904.7k
Barbara Yastine
Independent Director9.33yrsUS$190.59k0.032% $1.1m
P. Benson
Lead Director6.17yrsUS$225.59k0.0037% $126.0k
Joel Babbit
Independent Director8.67yrsUS$185.59k0.013% $451.0k
Beatriz Perez
Independent Director5.92yrsUS$185.59k0.013% $454.0k
Donald Williams
Non-Executive Chairman of the Board10.5yrsUS$275.59k0.065% $2.2m
C. Chambliss
Independent Director2.83yrsUS$103.95k0.014% $464.0k

6.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PRI's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PRI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.432b
  • Shares outstanding: 40.78m
  • 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; Investment and Savings Products; and Corporate and Other Distributed Products. It underwrites individual term life insurance products. The company also provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, fixed indexed annuities, and segregated funds. In addition, it offers auto and homeowners' insurance, home automation solutions, and mortgage loan referrals; ID theft defense services; and insurance products, including supplemental medical and dental, accidental death, and disability for small businesses. Further, the company provides prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters. The company distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 02:25
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.