Primerica (PRI) AI Stock Analysis

• Market Cap: $8.56B
• Dividend Yield: 1.48%
• Average Volume (3M): 163.16K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.85
• Revenue Growth: 5.70%
• EPS Growth: 61.69%
• Country: US
• Employees: 2,289
• Sector: Financial
• Sector Strength: 71
• Industry: Insurance - Life
• EPS (TTM): 5.46
• Shares Outstanding: 32,391,335
• 10 Day Avg. Volume: 186,570
• 30 Day Avg. Volume: 163,162
• 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: 1.27
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 9.82
• 1Y Price Target: $304.13
• Price Target Upside: 15.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $292.00 ▲(11.09% Upside)

Primerica's overall stock score reflects strong financial performance and positive earnings call sentiment. The company's robust profitability and effective cash flow management are significant strengths. However, technical analysis indicates potential bearish momentum, and valuation metrics suggest moderate pricing. Despite challenges in the Term Life segment, the company's long-term growth prospects remain optimistic.

Positive Factors

Capital Returns

Capital return remains strong and steady, with the company returning a significant portion of adjusted net operating income.

Earnings Performance

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

Financial Stability

Management highlighted Primerica's unique distribution model with low balance sheet risk, strong earnings growth, ROE, and FCF conversions.

Negative Factors

Growth Challenges

EPS growth decelerated despite favorable market conditions and high share buybacks.

Market Volatility

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.

Productivity Decline

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

Primerica Business Overview & Revenue Model

Company Description

Primerica, Inc. is a financial services company headquartered in Duluth, Georgia, specializing in providing financial products and services to middle-income families. The company operates primarily in the sectors of life insurance, investment, and financial planning, offering products such as term life insurance, mutual funds, annuities, and debt management services. Through a network of independent representatives, Primerica aims to empower clients to achieve financial independence by educating them about their finances and offering tailored solutions to meet their needs.

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 financial health with robust profitability, effective leverage management, and solid cash flow generation. Despite some data irregularities, particularly in revenue reporting for 2024, the company's financial performance is commendable, demonstrating resilience and stability in the life insurance industry.

Income Statement

Primerica's income statement reflects strong profitability and growth. The TTM gross profit margin is robust at 58.3%, and the net profit margin stands at 21.2%, indicating healthy operational efficiency. However, the dramatic drop in reported annual revenue for 2024 suggests a data anomaly. EBIT and EBITDA margins are also strong at 38.8% and 28.1% respectively in TTM, underscoring effective cost management.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.86, suggesting manageable leverage. ROE for TTM is impressive at 22.2%, highlighting effective use of equity financing. The equity ratio is moderate at 15.5%, reflecting a well-balanced capital structure. Overall, the company maintains strong asset and liability management.

Cash Flow

Cash flows are strong, with the TTM operating cash flow to net income ratio at 1.69, indicating good cash generation relative to net income. Free cash flow growth is stable, and the free cash flow to net income ratio stands at 1.65, further emphasizing robust cash generation capabilities. The company efficiently manages its cash flow, supporting ongoing operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.20B	3.09B	2.82B	2.72B	2.71B	2.22B
Gross Profit	2.20B	1.31B	2.48B	2.40B	2.41B	1.97B
EBITDA	1.11B	987.68M	2.60B	681.39M	703.98M	553.27M
Net Income	501.67M	470.52M	576.60M	373.01M	373.36M	386.16M
Balance Sheet
Total Assets	14.59B	14.58B	15.03B	15.35B	16.12B	14.91B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.68B	1.62B	3.05B	3.18B	3.01B
Total Debt	1.93B	1.95B	2.04B	2.08B	2.04B	1.77B
Total Liabilities	12.33B	12.32B	12.96B	13.63B	14.03B	13.07B
Stockholders Equity	2.26B	2.26B	2.07B	1.72B	2.08B	1.84B
Cash Flow
Free Cash Flow	819.09M	832.86M	658.62M	731.86M	632.27M	615.79M
Operating Cash Flow	848.66M	862.09M	692.52M	757.66M	656.96M	643.42M
Investing Cash Flow	-244.71M	-232.25M	-90.05M	-200.05M	-923.38M	-53.53M
Financing Cash Flow	-569.69M	-551.14M	-479.62M	-457.85M	107.97M	-301.79M

Primerica Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 262.84
• 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 262.84 is below the 20-day moving average (MA) of 263.66, below the 50-day MA of 265.16, and below the 200-day MA of 274.86, indicating a bearish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 49.01 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
FG	79 Outperform	$4.78B	14.50	8.40%	2.46%	1.78%	0.77%
GL	74 Outperform	$11.22B	11.07	20.02%	0.73%	4.02%	13.01%
PRI	72 Outperform	$8.56B	13.09	31.95%	1.48%	5.70%	61.69%
LNC	71 Outperform	$7.53B	6.93	12.97%	4.39%	11.33%	-38.17%
UNM	69 Neutral	$11.98B	8.42	13.95%	2.43%	1.69%	22.65%
Sector *	62 Neutral	AU$10.42B	9.87	13.11%	4.72%	32.06%	21.38%
JXN	61 Neutral	$6.57B	82.50	0.30%	3.11%	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.

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 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.