Primerica, Inc.
Primerica, Inc. Fundamental Analysis
Primerica, Inc. (PRI) shows strong financial fundamentals with a PE ratio of 10.62, profit margin of 22.93%, and ROE of 32.29%. The company generates $3.2B in annual revenue with strong year-over-year growth of 11.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PRI's fundamental strength across five key dimensions:
Efficiency Score
WeakPRI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPRI trades at attractive valuation levels.
Growth Score
ModeratePRI shows steady but slowing expansion.
Financial Health Score
ExcellentPRI maintains a strong and stable balance sheet.
Profitability Score
ExcellentPRI achieves industry-leading margins.
Key Financial Metrics
Is PRI Expensive or Cheap?
P/E Ratio
PRI trades at 10.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRI's PEG of 1.98 indicates fair valuation.
Price to Book
The market values Primerica, Inc. at 3.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.72 times EBITDA. This is generally considered low.
How Well Does PRI Make Money?
Net Profit Margin
For every $100 in sales, Primerica, Inc. keeps $22.93 as profit after all expenses.
Operating Margin
Core operations generate 29.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.29 in profit for every $100 of shareholder equity.
ROA
Primerica, Inc. generates $5.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Primerica, Inc. generates strong operating cash flow of $888.25M, reflecting robust business health.
Free Cash Flow
Primerica, Inc. generates strong free cash flow of $879.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.79 in free cash annually.
FCF Yield
PRI converts 11.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PRI Stacks Against Its Sector Peers
| Metric | PRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.62 | 18.50 | Better (Cheaper) |
| ROE | 32.29% | 809.00% | Weak |
| Net Margin | 22.93% | 2211.00% | Weak |
| Debt/Equity | 0.74 | 0.90 | Neutral |
| Current Ratio | 5.41 | 691.82 | Strong Liquidity |
| ROA | 5.00% | -24320.00% (disorted) | Weak |
PRI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Primerica, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
89.72%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
58.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
119.37%
Industry Style: Value, Dividend, Cyclical
High Growth