Primerica (PRI) AI Stock Analysis

• Market Cap: $8.87B
• Dividend Yield: 1.47%
• Average Volume (3M): 158.20K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.83
• Revenue Growth: 5.70%
• EPS Growth: 61.69%
• Country: US
• Employees: 2,289
• Sector: Financial
• Sector Strength: 77
• Industry: Insurance - Life
• EPS (TTM): 5.46
• Shares Outstanding: 32,391,335
• 10 Day Avg. Volume: 142,529
• 30 Day Avg. Volume: 158,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $308.14
• Price Target Upside: 12.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $293.00 ▲(7.23% Upside)

Primerica's overall stock score reflects strong financial performance and reasonable valuation, supported by positive earnings call highlights. However, technical indicators suggest a neutral market sentiment, and challenges in specific segments like term life insurance policies may pose risks.

Positive Factors

Earnings

Primerica reported another good quarter with operating EPS above consensus, driven by strong ISP results.

Revenue Growth

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

Negative Factors

Cost-of-Living Pressures

Cost-of-living pressures continue to weigh on term life results.

Market Conditions

Investors have questioned PRI's ability to grow in an environment that features weaker and more volatile equity markets and economic pressures on its mass market customer base.

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 multiple streams, primarily from the sale of financial products and services. The company's key revenue sources include life insurance premiums, investment product sales, and fees from financial planning services. Primerica earns commissions on the life insurance policies sold by its representatives, as well as on mutual funds and other investment products. Additionally, the company benefits from a robust multi-level marketing structure, where representatives earn commissions not only on their sales but also on the sales made by agents they recruit. This model incentivizes representatives to expand their networks, driving additional revenue. Strategic partnerships with financial institutions and investment firms also enhance Primerica's product offerings, further contributing to its earnings.

Primerica Financial Statement Overview

Summary

Primerica demonstrates strong profitability and operational efficiency, with solid margins and return on equity. However, the recent decline in revenue and free cash flow growth, coupled with a moderate debt level, suggests potential challenges ahead.

Income Statement

Primerica's income statement shows a robust EBIT and EBITDA margin, indicating strong operational efficiency. However, the recent revenue decline in the TTM period is a concern, suggesting potential market challenges. Despite this, the company maintains a healthy net profit margin, reflecting effective cost management.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which is manageable but slightly elevated compared to previous years. The return on equity is strong, demonstrating effective use of shareholder funds. However, the equity ratio indicates a moderate reliance on debt financing, which could pose risks if market conditions worsen.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which could impact future investments and dividends. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. However, the recent negative free cash flow growth rate is a concern that needs monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.19B	3.15B	2.82B	2.72B	2.77B	2.28B
Gross Profit	1.97B	1.31B	2.48B	1.53B	2.77B	2.28B
EBITDA	1.34B	987.68M	2.60B	681.39M	703.98M	553.27M
Net Income	678.84M	470.52M	576.60M	472.07M	477.36M	386.16M
Balance Sheet
Total Assets	14.83B	14.58B	15.03B	15.35B	16.12B	14.91B
Cash, Cash Equivalents and Short-Term Investments	3.72B	1.68B	1.62B	3.05B	3.18B	3.01B
Total Debt	1.91B	1.95B	2.04B	2.08B	2.04B	1.77B
Total Liabilities	12.52B	12.32B	12.96B	13.63B	14.03B	13.07B
Stockholders Equity	2.31B	2.26B	2.07B	1.72B	2.08B	1.84B
Cash Flow
Free Cash Flow	809.07M	832.86M	658.62M	731.86M	632.27M	615.79M
Operating Cash Flow	837.95M	862.09M	692.52M	757.66M	656.96M	643.42M
Investing Cash Flow	-276.21M	-232.25M	-90.05M	-200.05M	-923.38M	-53.53M
Financing Cash Flow	-568.35M	-551.14M	-479.62M	-457.85M	107.97M	-301.79M

Primerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 273.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 273.25 is above the 20-day moving average (MA) of 265.80, above the 50-day MA of 265.81, and above the 200-day MA of 272.70, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, 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	80 Outperform	$4.75B	14.29	8.40%	2.52%	1.78%	0.77%
GL	78 Outperform	$11.46B	11.23	20.02%	0.73%	4.02%	13.01%
PRI	71 Outperform	$8.87B	13.56	31.95%	1.47%	5.70%	61.69%
LNC	71 Outperform	$8.19B	7.55	12.97%	4.16%	11.33%	-38.17%
UNM	69 Neutral	$12.44B	8.71	13.95%	2.36%	1.69%	22.65%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
JXN	63 Neutral	$6.84B	82.50	0.30%	3.06%	27.18%	-100.02%

Primerica Corporate Events

Primerica Reports Strong Q2 2025 Financial Results

On August 6, 2025, Primerica announced its financial results for the second quarter of 2025, highlighting a 7% year-over-year increase in adjusted operating revenues to $796.0 million and a 6% rise in adjusted net operating income to $180.4 million. Despite a decrease in net income compared to the previous year due to non-recurring items in 2024, the company showed strong growth in its Investment and Savings Products segment, with sales reaching $3.5 billion, a 15% increase. The life-licensed sales force grew by 5% year-over-year, reflecting the company’s ongoing appeal to individuals seeking flexible career paths. These results underscore Primerica’s resilience and strength in navigating economic uncertainties, positioning it as a robust player in the financial services sector.