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Primerica

NYSE:PRI
Snowflake Description

Proven track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRI
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Primerica, Inc., together with its subsidiaries, provides financial products to middle income households in the United States and Canada. The last earnings update was 74 days ago. More info.


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PRI Share Price and Events
7 Day Returns
-3.1%
NYSE:PRI
-1.7%
US Insurance
-1.2%
US Market
1 Year Returns
11.2%
NYSE:PRI
14%
US Insurance
3.4%
US Market
PRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Primerica (PRI) -3.1% 0.2% -4% 11.2% 130% 158.7%
US Insurance -1.7% 1.1% 8.4% 14% 37.2% 51.5%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • PRI underperformed the Insurance industry which returned 14% over the past year.
  • PRI outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
PRI
Industry
5yr Volatility vs Market

PRI Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Primerica to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Primerica.

NYSE:PRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $38.87 * 18.6%
$7.24
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $38.87
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PRI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 21%) (29.86%))
0.897
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.897 * 5.96%)
8.08%

Discounted Cash Flow Calculation for NYSE:PRI using Excess Returns Model Model

The calculations below outline how an intrinsic value for Primerica is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:PRI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (18.6% – 8.08%) * $38.87)
$4.10
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $4.10 / (8.08% - 2.73%)
$76.75
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $38.87 + $76.75
$115.61
NYSE:PRI Discount to Share Price
Calculation Result
Value per share (USD) From above. $115.61
Current discount Discount to share price of $121.14
= -1 x ($121.14 - $115.61) / $115.61
-4.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Primerica is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Primerica's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Primerica's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $7.74
NYSE:PRI Share Price ** NYSE (2019-07-19) in USD $121.14
United States of America Insurance Industry PE Ratio Median Figure of 89 Publicly-Listed Insurance Companies 17.47x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Primerica.

NYSE:PRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PRI Share Price ÷ EPS (both in USD)

= 121.14 ÷ 7.74

15.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Primerica's expected growth come at a high price?
Raw Data
NYSE:PRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
5.7%per year
United States of America Insurance Industry PEG Ratio Median Figure of 62 Publicly-Listed Insurance Companies 1.73x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:PRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.65x ÷ 5.7%

2.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Primerica is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Primerica's assets?
Raw Data
NYSE:PRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $35.88
NYSE:PRI Share Price * NYSE (2019-07-19) in USD $121.14
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:PRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PRI Share Price ÷ Book Value per Share (both in USD)

= 121.14 ÷ 35.88

3.38x

* Primary Listing of Primerica.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Primerica is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess Primerica's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Primerica has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PRI Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Primerica expected to grow at an attractive rate?
  • Primerica's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Primerica's earnings growth is positive but not above the United States of America market average.
  • Primerica's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PRI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 5.7%
NYSE:PRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 6.7%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 8.5%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PRI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 2,211 371 2
2019-12-31 2,050 351 2
NYSE:PRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,975 500 336
2018-12-31 1,937 478 322
2018-09-30 1,890 465 403
2018-06-30 1,830 434 385
2018-03-31 1,773 383 361
2017-12-31 1,716 392 348
2017-09-30 1,664 338 237
2017-06-30 1,618 309 228
2017-03-31 1,582 312 224
2016-12-31 1,538 294 218
2016-09-30 1,496 285 209
2016-06-30 1,467 281 200

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Primerica's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Primerica's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Primerica Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PRI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 9.05 9.15 8.95 3.00
2019-12-31 8.13 8.14 8.12 2.00
NYSE:PRI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 7.74
2018-12-31 7.35
2018-09-30 9.11
2018-06-30 8.61
2018-03-31 7.99
2017-12-31 7.63
2017-09-30 5.15
2017-06-30 4.92
2017-03-31 4.79
2016-12-31 4.59
2016-09-30 4.34
2016-06-30 4.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Primerica will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Primerica's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Primerica has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PRI Past Performance

  How has Primerica performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Primerica's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Primerica's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Primerica Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PRI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,974.69 335.68 507.11
2018-12-31 1,937.33 322.20 503.54
2018-09-30 1,890.31 403.40 488.47
2018-06-30 1,830.46 384.92 471.62
2018-03-31 1,773.38 361.37 457.57
2017-12-31 1,715.97 347.73 445.27
2017-09-30 1,664.23 236.88 436.14
2017-06-30 1,618.28 228.26 426.02
2017-03-31 1,582.09 224.42 416.72
2016-12-31 1,537.96 217.58 405.16
2016-09-30 1,496.48 208.76 399.56
2016-06-30 1,467.06 200.18 397.70
2016-03-31 1,436.68 190.15 394.89
2015-12-31 1,417.25 188.30 397.92
2015-09-30 1,406.95 185.70 398.05
2015-06-30 1,387.19 177.90 398.29
2015-03-31 1,365.10 177.83 393.60
2014-12-31 1,340.58 177.78 382.65
2014-09-30 1,313.08 168.97 364.42
2014-06-30 1,284.09 167.96 354.21
2014-03-31 1,256.45 161.82 350.76
2013-12-31 1,229.00 156.03 336.12
2013-09-30 1,216.85 159.11 326.01
2013-06-30 1,205.53 163.42 325.55
2013-03-31 1,202.56 165.88 309.51
2012-12-31 1,153.77 168.66 295.46
2012-09-30 1,162.07 166.01 451.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Primerica has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Primerica used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
  • Primerica has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Primerica's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Primerica has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PRI Health

 How is Primerica's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Primerica's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Primerica's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Primerica Company Filings, last reported 3 months ago.

NYSE:PRI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,521.39 1,474.09 314.41
2018-12-31 1,461.51 1,395.91 283.92
2018-09-30 1,443.46 1,335.34 241.33
2018-06-30 1,400.58 1,298.64 182.36
2018-03-31 1,426.50 1,258.51 219.37
2017-12-31 1,419.10 1,199.46 286.19
2017-09-30 1,280.53 1,168.23 188.93
2017-06-30 1,269.25 1,123.96 170.04
2017-03-31 1,246.50 1,000.77 198.50
2016-12-31 1,221.37 949.06 219.36
2016-09-30 1,220.89 921.92 207.58
2016-06-30 1,207.47 894.87 221.10
2016-03-31 1,172.76 864.11 183.34
2015-12-31 1,145.77 808.46 157.65
2015-09-30 1,146.68 813.79 167.10
2015-06-30 1,197.63 766.46 161.86
2015-03-31 1,239.42 668.17 187.55
2014-12-31 1,245.13 644.74 199.71
2014-09-30 1,294.48 631.96 174.13
2014-06-30 1,302.73 468.08 159.86
2014-03-31 1,253.53 483.59 169.37
2013-12-31 1,222.03 464.33 162.18
2013-09-30 1,195.51 450.32 158.65
2013-06-30 1,146.26 460.73 130.45
2013-03-31 1,307.85 507.77 211.93
2012-12-31 1,275.42 514.36 119.98
2012-09-30 1,337.41 552.09 202.90
  • Primerica's level of debt (96.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.5% vs 96.9% today).
  • Debt is well covered by operating cash flow (33.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Primerica's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Primerica has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PRI Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.12%
Current annual income from Primerica dividends. Estimated to be 1.19% next year.
If you bought $2,000 of Primerica shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Primerica's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Primerica's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PRI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PRI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.65 1.00
2020-12-31 1.43 2.00
2019-12-31 1.36 2.00
NYSE:PRI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 1.360 1.118
2019-05-07 1.360 1.069
2019-02-26 1.360 1.087
2019-02-08 1.360 1.137
2018-11-07 1.000 0.931
2018-11-06 1.000 0.858
2018-08-07 1.000 0.847
2018-05-09 1.000 0.973
2018-05-08 1.000 1.063
2018-02-07 1.000 1.025
2017-11-06 0.800 0.787
2017-08-07 0.800 0.990
2017-05-08 0.760 0.990
2017-02-07 0.760 0.929
2016-11-07 0.720 1.016
2016-08-10 0.720 1.298
2016-05-09 0.680 1.247
2016-02-08 0.680 1.518
2015-11-09 0.640 1.365
2015-05-08 0.640 1.420
2015-02-05 0.640 1.269
2014-11-07 0.480 0.917
2014-08-08 0.480 0.985
2014-05-09 0.480 1.032
2014-02-07 0.480 1.052
2013-11-11 0.440 1.030
2013-08-12 0.440 1.092
2013-05-13 0.440 1.167
2013-02-11 0.440 1.349
2012-11-12 0.360 1.187
2012-08-14 0.280 0.969
2012-05-16 0.200 0.770
2012-02-14 0.120 0.473
2011-11-16 0.120 0.508
2011-08-15 0.120 0.569
2011-05-17 0.120 0.569
2011-02-14 0.040 0.166
2010-11-10 0.040 0.168
2010-08-11 0.040 0.190

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Primerica's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.2x coverage).
X
Income/ dividend checks
We assess Primerica's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Primerica afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Primerica has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PRI Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Glenn Williams
COMPENSATION $5,145,317
AGE 60
TENURE AS CEO 4.3 years
CEO Bio

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 April 2015. He served as an Executive Vice President of Primerica Corporation since 2000 until 2005. He served as the President and Chief Executive Officer at Primerica Financial Services (Canada) Ltd., from 1996 to 2000, Executive Vice President from 1995 to 1996, Senior Vice President from 1994 to 1995 and Vice President from 1985 to 1994. Mr. Williams was a customer service representative at Primerica Investments from 1983 to 1985 and started with us as a sales representative in 1981. He serves in leadership roles at Hebron Baptist Church and Hebron Christian Academy. He has been a Director of Primerica, Inc. since April 1, 2015. Mr. Williams holds a B.S. in Education from Baptist University of America in 1981.

CEO Compensation
  • Glenn's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Glenn's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Primerica management team in years:

4.3
Average Tenure
60
Average Age
  • The tenure for the Primerica management team is about average.
Management Team

Glenn Williams

TITLE
CEO & Director
COMPENSATION
$5M
AGE
60
TENURE
4.3 yrs

Peter Schneider

TITLE
President
COMPENSATION
$3M
AGE
63
TENURE
4.3 yrs

Alison Rand

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
51
TENURE
19.5 yrs

Gregory Pitts

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
56
TENURE
9.6 yrs

William Kelly

TITLE
Chief Executive Officer of PFS Investments Inc.
COMPENSATION
$1M
AGE
63
TENURE
1.5 yrs

Michael Adams

TITLE
Executive VP & Chief Business Technology Officer
AGE
62
TENURE
9.3 yrs

Nicole Russell

TITLE
Senior Vice President of Investor Relations
TENURE
0.6 yrs

Jeffrey Fendler

TITLE
Executive VP and Chief Compliance & Risk Officer
AGE
62
TENURE
5.4 yrs

Ben Rogers

TITLE
Executive VP & General Counsel
AGE
54
TENURE
0.5 yrs

Bobby Peterman

TITLE
Executive VP & Chief Marketing Officer
AGE
53
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Primerica board of directors in years:

5.5
Average Tenure
62.5
Average Age
  • The tenure for the Primerica board of directors is about average.
Board of Directors

Rick Williams

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$276K
AGE
63
TENURE
9.8 yrs

Glenn Williams

TITLE
CEO & Director
COMPENSATION
$5M
AGE
60
TENURE
4.3 yrs

John Addison

TITLE
Director
COMPENSATION
$276K
AGE
62
TENURE
4.3 yrs

P. Benson

TITLE
Lead Director
COMPENSATION
$226K
AGE
72
TENURE
5.4 yrs

Barbara Yastine

TITLE
Independent Director
COMPENSATION
$191K
AGE
60
TENURE
8.6 yrs

Gary Crittenden

TITLE
Director
COMPENSATION
$202K
AGE
66
TENURE
6 yrs

Joel Babbit

TITLE
Director
COMPENSATION
$186K
AGE
65
TENURE
7.9 yrs

Cynthia Day

TITLE
Director
COMPENSATION
$196K
AGE
53
TENURE
5.5 yrs

Beatriz Perez

TITLE
Director
COMPENSATION
$186K
AGE
49
TENURE
5.2 yrs

C. Chambliss

TITLE
Director
COMPENSATION
$104K
AGE
75
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Sell P. Benson Individual 14. Mar 19 14. Mar 19 -312 $123.44 $-38,513
15. Mar 19 Sell John Addison Individual 14. Mar 19 14. Mar 19 -3,249 $122.85 $-399,140
15. Mar 19 Sell William Kelly Individual 13. Mar 19 13. Mar 19 -5,000 $122.85 $-614,265
25. Jan 19 Buy Alison Rand Individual 16. Dec 14 14. Sep 18 295 $125.00 $19,869
14. Sep 18 Sell Barbara Yastine Individual 12. Sep 18 12. Sep 18 -1,846 $124.51 $-229,848
07. Sep 18 Sell P. Benson Individual 06. Sep 18 06. Sep 18 -311 $123.35 $-38,362
07. Sep 18 Sell Gregory Pitts Individual 05. Sep 18 05. Sep 18 -2,449 $122.28 $-299,465
X
Management checks
We assess Primerica's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Primerica has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PRI News

Simply Wall St News

Have Insiders Been Selling Primerica, Inc. (NYSE:PRI) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Primerica The Last 12 Months Of Insider Transactions At Primerica The Chief Executive Officer of PFS Investments Inc., William Kelly, made the biggest insider sale in the last 12 months. … Over the last year we saw more insider selling of Primerica shares, than buying. … This level of insider ownership is good but just short of being particularly stand-out.

Simply Wall St -

Does Primerica (NYSE:PRI) Have A Healthy Balance Sheet?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … We can see from the most recent balance sheet that Primerica had liabilities of US$974.2m falling due within a year, and liabilities of US$10.6b due beyond that. … Since Primerica does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Is Primerica, Inc.'s (NYSE:PRI) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … See our latest analysis for Primerica How Does Glenn Williams's Compensation Compare With Similar Sized Companies? … is worth US$5.2b, and total annual CEO compensation is US$5.1m.

Simply Wall St -

If You Had Bought Primerica (NYSE:PRI) Stock Five Years Ago, You Could Pocket A 151% Gain Today

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Primerica achieved compound earnings per share (EPS) growth of 22% per year. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Primerica, Inc. (NYSE:PRI)

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Primerica: P/E of 15.7 = $121.51 ÷ $7.74 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Earnings growth rates have a big influence on P/E ratios. … The Verdict On Primerica's P/E Ratio Primerica trades on a P/E ratio of 15.7, which is below the US market average of 17.9.

Simply Wall St -

Is Primerica, Inc. (NYSE:PRI) A Smart Pick For Income Investors?

Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth. … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … Investors might not know much about Primerica's dividend prospects, even though it has been paying dividends for the last nine years and offers a 1.0% yield.

Simply Wall St -

Why Primerica, Inc. (NYSE:PRI) Could Be Worth Watching

(NYSE:PRI), which is in the insurance business, and is based in United States,. … However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value? … Let’s take a look at Primerica’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Should You Be Worried About Insider Transactions At Primerica, Inc. (NYSE:PRI)?

So shareholders might well want to know whether insiders have been buying or selling shares in Primerica, Inc. … Primerica Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of US$122.

Simply Wall St -

Is Primerica, Inc.'s (NYSE:PRI) CEO Pay Justified?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Glenn Williams's Compensation Compare With Similar Sized Companies. … has a market cap of US$5.1b, and is paying total annual CEO compensation of US$5.2m.

Simply Wall St -

Shareholders Are Thrilled That The Primerica Share Price Increased 191%

(NYSE:PRI) share price is 191% higher than it was three years ago. … And in the last month, the share price has gained 2.7%. … Primerica was able to grow its EPS at 26% per year over three years, sending the share price higher.

Simply Wall St -

PRI Company Info

Description

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.

Details
Name: Primerica, Inc.
PRI
Exchange: NYSE
Founded: 1927
$5,129,207,395
42,341,154
Website: http://www.primerica.com
Address: Primerica, Inc.
1 Primerica Parkway,
Duluth,
Georgia, 30099,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PRI Voting Common Stock New York Stock Exchange US USD 01. Apr 2010
DB PI7 Voting Common Stock Deutsche Boerse AG DE EUR 01. Apr 2010
Number of employees
Current staff
Staff numbers
2,166
Primerica employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 00:43
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/13
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.