Primerica (PRI) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: 1.61%
• Average Volume (3M): 195.12K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.77
• 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: 203,330
• 30 Day Avg. Volume: 195,116
• 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: $311.80
• Price Target Upside: 20.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $281.00 ▲(8.65% Upside)

Primerica's overall stock score reflects strong financial performance and positive earnings call insights, which are somewhat offset by weak technical indicators. The company's attractive valuation adds to its appeal, but the bearish technical trend and challenges in life sales temper the overall score.

Positive Factors

ISP Segment Growth

The strong growth in the Investment and Savings Products (ISP) segment indicates a robust demand for Primerica's financial products, enhancing revenue diversification and long-term market position.

Cash Flow Management

Effective cash flow management supports ongoing operations and potential investments, ensuring financial stability and capacity for strategic initiatives.

Share Repurchase Program

The share repurchase program reflects confidence in long-term growth prospects and enhances shareholder value by reducing outstanding shares.

Negative Factors

Decline in Life Sales

A decline in life insurance sales could impact revenue from a core business segment, potentially affecting overall growth and market share.

Recruiting Challenges

Recruiting challenges may hinder the expansion of Primerica's sales force, affecting future sales growth and market penetration.

Economic Pressures

Economic uncertainties affecting the middle market could suppress demand for financial products, impacting revenue growth and profitability.

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: Positive
• Last Price: 258.62
• 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 Positive. The current price of 258.62 is above the 20-day moving average (MA) of 256.73, above the 50-day MA of 258.53, and below the 200-day MA of 264.93, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRI.

Primerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	77 Outperform	$4.42B	9.80	10.12%	2.76%	-4.58%	―
JXN	73 Outperform	$7.26B	14.77	5.50%	2.98%	24.94%	―
PRI	72 Outperform	$8.26B	11.88	33.91%	1.61%	5.63%	67.39%
LNC	71 Outperform	$8.60B	4.06	21.66%	3.93%	35.76%	636.97%
GL	68 Neutral	$11.04B	10.05	22.28%	0.76%	3.73%	17.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNM	64 Neutral	$13.04B	15.18	8.35%	2.26%	1.80%	-44.44%

Primerica Corporate Events

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.