Primerica (PRI) AI Stock Analysis

• Market Cap: $8.24B
• Dividend Yield: 1.61%
• Average Volume (3M): 192.10K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.79
• Revenue Growth: 5.63%
• EPS Growth: 67.39%
• Country: US
• Employees: 2,289
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 6.33
• Shares Outstanding: 31,916,058
• 10 Day Avg. Volume: 196,744
• 30 Day Avg. Volume: 192,102
• PEG Ratio: -1.40
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 3.00
• P/FCF Ratio: 11.13
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 8.18
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $313.60
• Price Target Upside: 21.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $287.00 ▲(11.17% Upside)

Primerica's overall stock score reflects its strong financial performance and reasonable valuation, which are the most significant factors. The company's robust growth in ISP and mortgage segments, along with a solid capital return strategy, further supports its position. However, technical indicators suggest potential bearish momentum, and challenges in life sales and recruiting due to economic pressures present risks.

Positive Factors

ISP Segment Growth

The strong growth in the ISP segment indicates robust demand for investment products, enhancing Primerica's revenue diversification and market position.

Mortgage Business Expansion

The expansion in the mortgage business demonstrates Primerica's ability to capitalize on housing market trends, contributing to long-term revenue growth.

Strong Capital Return Strategy

A robust capital return strategy reflects strong cash generation and financial health, enhancing shareholder value and supporting stock stability.

Negative Factors

Decline in Life Sales

A decline in life sales could indicate challenges in maintaining market share in the core insurance segment, potentially impacting long-term revenue.

Recruiting and Licensing Challenges

Challenges in recruiting and licensing may hinder future growth and expansion of the sales force, affecting Primerica's ability to scale operations.

Economic Pressures

Economic pressures affecting middle-income families could reduce demand for financial products, posing a risk to Primerica's core market.

Primerica Business Overview & Revenue Model

Company Description

Primerica, Inc., together with its subsidiaries, provides financial products to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement products. The Corporate and Other Distributed Products segment provides mortgage loans; 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; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental health, accidental death, and disability for small businesses. It distributes and sells its products through a network of 129,515 licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

How the Company Makes Money

Primerica generates revenue through several key streams. The primary source is the sale of life insurance policies, where the company earns premium income from policyholders. Additionally, Primerica earns commissions and fees from the sale of investment products, such as mutual funds and annuities, which are marketed through its licensed representatives. The company also generates income from client fees associated with financial planning and debt management services. A significant aspect of Primerica's business model is its network of independent representatives, who are compensated through commissions based on their sales performance, creating a direct link between sales volume and company revenue. Partnerships with various financial institutions and product providers further enhance its offerings and revenue potential.

Primerica Financial Statement Overview

Summary

Primerica demonstrates strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a balanced leverage position, supporting its growth strategy while managing risks. While the gross profit margin has seen some decline, the overall financial performance remains solid, positioning Primerica well within the life insurance industry.

Income Statement

Primerica's income statement shows strong profitability with a solid net profit margin of 22.47% for TTM, indicating efficient cost management. The revenue growth rate of 2.08% in TTM is modest but consistent, reflecting steady business expansion. The EBIT and EBITDA margins are robust at 29.70% and 30.15% respectively, showcasing operational efficiency. However, the gross profit margin has decreased compared to previous years, which could indicate rising costs or pricing pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.82, indicating a balanced approach to leveraging. Return on equity is impressive at 31.64%, demonstrating strong profitability relative to shareholder equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the company maintains a healthy balance between debt and equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 2.71% in TTM, indicating effective cash management. The operating cash flow to net income ratio of 6.50 suggests strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, highlighting efficient conversion of income to cash. These metrics suggest solid cash flow stability, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23B	3.09B	2.75B	2.66B	2.71B	2.22B
Gross Profit	1.33B	1.31B	1.10B	1.03B	1.06B	780.76M
EBITDA	988.72M	987.68M	830.30M	780.07M	703.98M	553.27M
Net Income	721.26M	470.52M	576.60M	472.07M	477.36M	386.16M
Balance Sheet
Total Assets	14.85B	14.58B	15.03B	14.64B	16.12B	14.91B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.68B	1.62B	3.05B	3.18B	3.01B
Total Debt	1.89B	1.95B	2.04B	2.08B	2.04B	1.77B
Total Liabilities	12.55B	12.32B	12.96B	12.61B	14.03B	13.07B
Stockholders Equity	2.30B	2.26B	2.07B	2.03B	2.08B	1.84B
Cash Flow
Free Cash Flow	830.99M	832.86M	658.62M	731.86M	632.27M	615.79M
Operating Cash Flow	833.57M	862.09M	692.52M	757.66M	656.96M	643.42M
Investing Cash Flow	-166.49M	-232.25M	-90.05M	-200.05M	-923.38M	-53.53M
Financing Cash Flow	-571.00M	-551.14M	-479.62M	-457.85M	107.97M	-301.79M

Primerica Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 258.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRI, the sentiment is Negative. The current price of 258.17 is above the 20-day moving average (MA) of 256.69, below the 50-day MA of 264.29, and below the 200-day MA of 266.59, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 33.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRI.

Primerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRI	76 Outperform	$8.24B	11.85	33.91%	1.61%	5.63%	67.39%
FG	74 Outperform	$4.37B	9.69	10.12%	2.78%	-4.58%	―
UNM	72 Outperform	$12.78B	14.88	8.35%	2.30%	1.80%	-44.44%
GL	71 Outperform	$10.74B	9.77	22.28%	0.79%	3.73%	17.47%
LNC	70 Outperform	$7.85B	3.71	21.66%	4.39%	35.76%	636.97%
JXN	69 Neutral	$6.65B	13.53	5.50%	3.36%	24.94%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Primerica Corporate Events

Primerica Reports Strong Q3 2025 Financial Results

Primerica, Inc., headquartered in Duluth, GA, is a prominent provider of financial products and services tailored for middle-income households across North America, specializing in term life insurance and investment products. In its third-quarter earnings report for 2025, Primerica announced record sales in its Investment and Savings Products (ISP) segment, reaching $3.7 billion, and an increase in client asset values to $126.8 billion. The company’s life-licensed sales force grew by 2% to 152,200 representatives, while net earnings per diluted share rose to $6.35, marking an 11% increase from the previous year. Key financial metrics highlighted include an 8% rise in total revenues to $839.9 million and a 6% increase in net income to $206.8 million. The Term Life segment saw a 3% increase in net premiums, although the number of new life insurance policies issued declined by 15%. The ISP segment achieved a 28% growth in sales, driven by strong demand and favorable market conditions, contributing to a 20% increase in revenues. Looking ahead, Primerica’s management remains optimistic about the company’s growth trajectory, emphasizing the strength and balance of its business model in empowering middle-income families with financial solutions.

Primerica’s Earnings Call: Strong Growth Amid Challenges

Primerica’s recent earnings call painted a picture of strong financial performance, marked by significant growth in its Investment and Savings Products (ISP) and mortgage segments. The company also demonstrated a robust capital return strategy. However, challenges in life sales and recruiting due to economic pressures tempered the overall outlook, creating a balanced sentiment throughout the call.

Primerica Reports Strong Q3 2025 Financial Results

On November 5, 2025, Primerica, Inc. reported its financial results for the third quarter of 2025, highlighting record sales in investment and savings products and a significant increase in client asset values. The company saw an 8% rise in total revenues and a 6% increase in net income compared to the same period in 2024. Despite a decline in new life insurance policies issued, Primerica’s term life segment showed steady growth in premiums. The company also completed its annual actuarial assumption review, resulting in a net remeasurement gain. These results underscore the strength of Primerica’s business model and its commitment to supporting middle-income families.

The most recent analyst rating on (PRI) stock is a Buy with a $340.00 price target. To see the full list of analyst forecasts on Primerica stock, see the PRI Stock Forecast page.