Primerica (PRI) AI Stock Analysis

• Market Cap: $8.92B
• Dividend Yield: 1.43%
• Average Volume (3M): 150.46K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.83
• Revenue Growth: 10.18%
• EPS Growth: -9.75%
• Country: US
• Employees: 2,289
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Life
• EPS (TTM): 5.02
• Shares Outstanding: 32,859,085
• 10 Day Avg. Volume: 120,562
• 30 Day Avg. Volume: 150,461
• PEG Ratio: 0.20
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.23
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 3.77
• 1Y Price Target: $307.71
• Price Target Upside: 18.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $294.00 ▲(12.97%Upside)

Primerica's overall stock score reflects strong financial performance and reasonably good valuation. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as recruiting difficulties, impact the score. The strong earnings performance and strategic growth in specific segments provide a foundation for future potential.

Positive Factors

Business Model

PRI has a uniquely capital-light business model and stronger growth profile relative to the Life Insurance peers.

Earnings

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

Financial Performance

Earnings of $81 million in Investment & Savings Products were above the consensus expectation of $74 million.

Negative Factors

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.

Momentum

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

Productivity

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

Primerica Business Overview & Revenue Model

Company Description

Primerica, Inc. (NYSE: PRI) is a leading financial services company headquartered in Duluth, Georgia. The company operates primarily in the United States and Canada, focusing on the middle-income market segment. Primerica provides a range of financial products and services, including term life insurance, mutual funds, annuities, and other financial products. The company’s mission is to help families become financially independent, offering education and customized solutions to meet their financial needs.

How the Company Makes Money

Primerica makes money primarily through the distribution of financial products and services via its extensive sales force of independent representatives. The company's revenue model is based on commissions and fees earned from the sale of term life insurance policies, investment and savings products, and other financial solutions. Primerica earns a significant portion of its income from the sales and renewal of term life insurance policies, which provide a steady stream of revenue over time. Additionally, Primerica earns revenue from its investment and savings products, including mutual funds and annuities, through asset management fees and commissions. The company benefits from its large network of licensed representatives who sell these products, enabling wide market reach and customer acquisition. Furthermore, Primerica's strategic partnerships with financial institutions and product providers enhance its ability to offer diverse financial solutions, contributing to its overall 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
2.37B	-62.65M	2.82B	2.72B	2.71B	2.22B
	Gross Profit
1.38B	0.00	2.48B	2.40B	2.41B	1.97B
	EBIT
917.73M	1.03B	1.79B	526.02M	437.97M	445.66M
	EBITDA
664.88M	962.65M	2.60B	681.39M	703.98M	553.27M
	Net Income Common Stockholders
501.67M	470.52M	576.60M	373.01M	373.36M	386.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.18B	3.63B	1.62B	3.05B	3.18B	3.01B
	Total Assets
16.12B	14.58B	15.03B	15.35B	16.12B	14.91B
	Total Debt
2.04B	1.95B	2.04B	2.08B	2.04B	1.77B
	Net Debt
1.65B	1.27B	1.43B	1.59B	1.65B	1.23B
	Total Liabilities
14.03B	12.32B	12.96B	13.63B	14.03B	13.07B
	Stockholders Equity
2.08B	2.26B	2.07B	1.72B	2.08B	1.84B
Cash Flow		Free Cash Flow
827.74M	832.86M	658.62M	731.86M	632.27M	615.79M
	Operating Cash Flow
848.51M	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: 260.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 260.24 is below the 20-day moving average (MA) of 270.57, below the 50-day MA of 265.09, and below the 200-day MA of 274.35, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 33.17 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
UNM	79 Outperform	$14.21B	9.61	14.68%	2.06%	1.69%	25.54%
GL	74 Outperform	$9.91B	9.77	20.47%	0.82%	5.41%	16.60%
PRI	74 Outperform	$8.92B	18.32	23.87%	1.43%	10.18%	-9.75%
FG	70 Outperform	$4.48B	8.99	12.72%	2.59%	-1.72%	95.91%
JXN	69 Neutral	$5.97B	81.38	1.24%	3.49%	3.55%	8.91%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
LNC	61 Neutral	$5.69B	4.74	16.91%	5.38%	8.31%	-2.30%

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.