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.

Rewards

Trading at 34% below its fair value

Earnings are forecast to grow 5.08% per year

Risk Analysis

No risks detected for PRI from our risk checks.


Snowflake Analysis

Good value with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

PRI

2.1%

US Insurance

1.7%

US Market


1 Year Return

16.9%

PRI

19.7%

US Insurance

23.6%

US Market

Return vs Industry: PRI underperformed the US Insurance industry which returned 19.6% over the past year.

Return vs Market: PRI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PRIIndustryMarket
7 Day-0.6%2.1%1.7%
30 Day-3.8%1.6%3.5%
90 Day2.1%4.8%11.7%
1 Year18.2%16.9%22.8%19.7%26.2%23.6%
3 Year82.0%76.7%37.5%26.8%53.2%43.3%
5 Year163.5%149.1%74.8%53.7%75.5%56.1%

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

34.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRI ($128.62) is trading below our estimate of fair value ($194.84)

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


Price To Earnings Ratio

PE vs Industry: PRI is good value based on its PE Ratio (15.3x) compared to the Insurance industry average (16.4x).

PE vs Market: PRI is good value based on its PE Ratio (15.3x) compared to the US market (18.9x).


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 (3.3x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRI's forecast earnings growth (5.1% per year) is above the savings rate (1.7%).

Earnings vs Market: PRI's earnings (5.1% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: PRI's revenue (6.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: PRI's revenue (6.6% 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 (22.7%)


Next Steps

Past Performance

How has Primerica performed over the past 5 years?

18.4%

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 lower than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: PRI's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: PRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PRI had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Insurance industry average (-11.3%).


Return on Equity

High ROE: PRI's Return on Equity (22.4%) is considered high.


Return on Assets


Return on Capital Employed


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 3x 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?

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: PRI's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PRI's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PRI has been paying a dividend for less than 10 years.

Growing Dividend: PRI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.2%), 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 (15.8% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Glenn Williams (60yo)

4.8yrs

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 ($USD5.15M) is about average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

4.8yrs

Average Tenure

60yo

Average Age

Experienced Management: PRI's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PRI's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$179,17709 Dec 19
Barbara Yastine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,325
Max PriceUS$135.23
SellUS$387,33112 Nov 19
Gregory Pitts
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares3,000
Max PriceUS$129.11
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
Senior Key Executive
Co-Head of Business Technology & CEO of PFS Investments
Shares5,000
Max PriceUS$122.85

Ownership Breakdown

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


Management Team

  • Ben Rogers (54yo)

    Executive VP & General Counsel

    • Tenure: 1yrs
  • Jeffrey Fendler (62yo)

    Executive VP and Chief Compliance & Risk Officer

    • Tenure: 5.9yrs
  • Alison Rand (51yo)

    Executive VP & CFO

    • Tenure: 20yrs
    • Compensation: US$2.06m
  • Peter Schneider (63yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$3.00m
  • Glenn Williams (60yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$5.15m
  • Gregory Pitts (56yo)

    Executive VP & COO

    • Tenure: 10.1yrs
    • Compensation: US$1.97m
  • Bill Kelly (63yo)

    Co-Head of Business Technology & CEO of PFS Investments

    • Tenure: 2.1yrs
    • Compensation: US$1.31m
  • Michael Adams (62yo)

    Executive VP & Chief Business Technology Officer

    • Tenure: 9.8yrs
  • Nicole Russell

    Senior Vice President of Investor Relations

    • Tenure: 1.1yrs
  • Bobby Peterman (53yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 1.6yrs

Board Members

  • Gary Crittenden (66yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$201.93k
  • John Addison (62yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$275.59k
  • Cynthia Day (53yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$195.59k
  • Barbara Yastine (60yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$190.59k
  • P. Benson (72yo)

    Lead Director

    • Tenure: 5.9yrs
    • Compensation: US$225.59k
  • Joel Babbit (65yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$185.59k
  • Beatriz Perez (49yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$185.59k
  • Rick Williams (63yo)

    Non-Executive Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: US$275.59k
  • Glenn Williams (60yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$5.15m
  • C. Chambliss (75yo)

    Independent Director

    • Tenure: 2.6yrs
    • 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$5.312b
  • Shares outstanding: 41.36m
  • 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 Analysis2020/01/20 00:15
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.