Primerica (PRI) AI Stock Analysis

• Market Cap: $9.15B
• Dividend Yield: 1.29%
• Average Volume (3M): 162.56K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.82
• Revenue Growth: 10.18%
• EPS Growth: -9.75%
• Country: US
• Employees: 2,289
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Life
• EPS (TTM): 5.02
• Shares Outstanding: 32,859,085
• 10 Day Avg. Volume: 160,069
• 30 Day Avg. Volume: 162,556
• PEG Ratio: 3.74
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.87
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 4.16
• 1Y Price Target: $303.71
• Price Target Upside: 11.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $305.00 ▲( 12.10% Upside)

Primerica's strong financial performance and strategic growth in its ISP and mortgage segments are key strengths, providing a solid foundation. However, technical analysis indicates potential resistance, and challenges in recruiting and term life sales suggest caution. Overall, the company's robust financial health and growth prospects slightly outweigh market and operational challenges.

Positive Factors

Earnings Performance

PRI reported earnings beats across all segments, strong sales and flows in ISP and a higher operating margin in Term Life.

Sales Growth

Sales of $3.6B were above estimates and up 28% year-over-year, benefiting from demand for mutual funds, annuities and managed accounts.

Segment Growth

Stable Term Life segment and continued growth in I&S Products segment should support the share price going forward.

Negative Factors

Economic Uncertainty

PRI posted year-over-year declines in recruiting and productivity, citing growing economic uncertainty.

Equity Market Correlation

Momentum will slow from here due to high correlation with equity markets.

Term Life Expenses

Term Life remains weak from higher cost of living and investment income growth is likely to slow.

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 makes money through a multi-level marketing (MLM) business model where independent representatives sell financial products and services directly to consumers. The company's primary source of revenue comes from the sale of term life insurance policies. Representatives also earn commissions by selling investment and savings products such as mutual funds and annuities. Primerica further earns income through fees associated with the management and administration of investment products. Additionally, the company benefits from its large sales force, which helps expand its customer base and increase product sales. Key partnerships with financial institutions and investment management firms also contribute to its revenue streams by providing a range of products that Primerica representatives can offer to clients.

Primerica Financial Statement Overview

Summary

Primerica shows strong financial performance with robust income growth and profitability. The balance sheet is solid with no debt, enhancing financial flexibility. Cash flows are strong, supporting potential future investments. Minor concerns exist with reduced total assets and equity, but these are offset by improved cash and profit margins.

Income Statement

Primerica's income statement shows strong growth and profitability. The gross profit margin is consistently high, reflecting efficient cost management. The net profit margin for 2024 was robust, though there was a decrease in net income compared to 2023. Revenue growth has been positive, highlighting a strong upward trend. EBIT and EBITDA margins are healthy, indicating stable operational performance.

Balance Sheet

The balance sheet is solid, with no outstanding debt in 2024, which significantly strengthens the company's financial position. The equity ratio is stable, and ROE is strong, showcasing effective utilization of shareholder equity. However, the decrease in total assets and stockholders' equity from 2023 is a slight concern, though it is balanced by the reduction in liabilities.

Cash Flow

Cash flow is robust, with strong operating cash flow relative to net income, indicating good cash generation capabilities. Free cash flow growth is positive, supporting potential future investments or distributions. The cash flow statement reflects a consistent ability to generate cash efficiently, which is crucial for stability and future growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.09B	2.82B	2.72B	2.71B	2.22B
	Gross Profit
3.09B	2.48B	2.40B	2.41B	1.97B
	EBIT
1.03B	1.79B	526.02M	437.97M	445.66M
	EBITDA
1.03B	2.60B	681.39M	703.98M	553.27M
	Net Income Common Stockholders
470.52M	576.60M	373.01M	373.36M	386.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.68B	1.62B	3.05B	3.18B	3.01B
	Total Assets
14.58B	15.03B	15.35B	16.12B	14.91B
	Total Debt
1.95B	2.04B	2.08B	2.04B	1.77B
	Net Debt
1.27B	1.43B	1.59B	1.65B	1.23B
	Total Liabilities
12.32B	12.96B	13.63B	14.03B	13.07B
	Stockholders Equity
2.26B	2.07B	1.72B	2.08B	1.84B
Cash Flow		Free Cash Flow
832.86M	658.62M	731.86M	632.27M	615.79M
	Operating Cash Flow
862.09M	692.52M	757.66M	656.96M	643.42M
	Investing Cash Flow
-232.25M	-90.05M	-200.05M	-923.38M	-53.53M
	Financing Cash Flow
-551.14M	-479.62M	-457.85M	107.97M	-301.79M

Primerica Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 272.08
• 50DMA: Positive
• 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 Neutral. The current price of 272.08 is above the 20-day moving average (MA) of 268.96, above the 50-day MA of 270.62, and below the 200-day MA of 274.16, indicating a neutral trend. The MACD of 2.97 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 67.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRI.

Primerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNM	76 Outperform	$14.30B	9.67	14.68%	2.05%	1.69%	25.54%
PRI	75 Outperform	$9.15B	18.80	23.87%	1.29%	10.18%	-9.75%
GL	74 Outperform	$10.09B	9.94	20.47%	0.81%	5.41%	16.60%
FG	70 Outperform	$4.36B	8.75	12.72%	2.66%	-1.72%	95.91%
JXN	69 Neutral	$6.08B	82.88	1.24%	3.41%	3.55%	8.91%
LNC	64 Neutral	$5.85B	4.87	16.91%	5.30%	8.31%	-2.30%
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%

Primerica Corporate Events

Primerica Concludes 2025 Annual Stockholders’ Meeting

Primerica held its 2025 annual stockholders’ meeting on May 14, 2025, where 90% of the outstanding shares were represented. During the meeting, several key proposals were addressed: the election of board members, approval of executive compensation, and the ratification of KPMG LLP as the independent public accounting firm for the fiscal year ending December 31, 2025.

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.

Primerica Reports Strong Q1 2025 Financial Results

On May 7, 2025, Primerica, Inc. announced its financial results for the first quarter ending March 31, 2025. The company reported a 9% increase in total revenues to $804.8 million, with net income rising 14% to $169.1 million compared to the previous year. The life-licensed sales force grew by 7% year-over-year, and investment and savings product sales reached a record $3.6 billion, up 28%. The results reflect the strength of Primerica’s business model and its ability to attract new recruits, despite economic uncertainties impacting productivity.