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Primerica
(NYSE:PRI)
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Rating:75Outperform
Price Target:
$308.00
▲(2.29% Upside)
Action:Reiterated
Date:10/08/26
Overall score is driven primarily by strong financial performance (profitability, cash generation, and improved leverage) and supportive valuation (low P/E with a modest dividend). These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and earnings-call risks around term-life policy declines and higher expense growth despite constructive 2H 2026 outlook.
Positive Factors
Investment business growth
Strong investment-product growth is expanding Primerica’s revenue base beyond term life insurance. Rising sales, record client assets, and increasing advisory activity can support recurring fee income and improve business mix over the next several quarters.
Negative Factors
Declining term-life production
Lower policy issuance threatens future premium growth and can weaken the scale benefits of Primerica’s term-life distribution model. Continued declines would also reduce the flow of new customers into related investment and financial products over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Investment business growth
Strong investment-product growth is expanding Primerica’s revenue base beyond term life insurance. Rising sales, record client assets, and increasing advisory activity can support recurring fee income and improve business mix over the next several quarters.
Read all positive factors
Primerica Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Profitability of each business line before taxes, showing which segments actually generate earnings and which may be margin drains. For investors in Primerica, this reveals whether high-revenue areas translate into profits, how claims, investment returns, or operating costs impact results, and whether one segment is subsidizing another—critical for judging sustainability and valuation.
Profitability of each business line before taxes, showing which segments actually generate earnings and which may be margin drains. For investors in Primerica, this reveals whether high-revenue areas translate into profits, how claims, investment returns, or operating costs impact results, and whether one segment is subsidizing another—critical for judging sustainability and valuation.
Data provided by:
The Fly
The FlyPrimerica (PRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.45B
Dividend Yield1.69%
Average Volume (3M)194.26K
Price to Earnings (P/E)11.0
Beta (1Y)0.77
Revenue Growth8.23%
EPS Growth23.45%
CountryUS
Employees2,309
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)24.94
Shares Outstanding30,777,350
10 Day Avg. Volume167,097
30 Day Avg. Volume194,262
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)3.45
Price to Sales (P/S)2.61
P/FCF Ratio9.63
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit4.32
Enterprise Value/Ebitda9.93
Forecast
1Y Price Target
$322.00Price Target Upside6.94% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)25.27
Revenue Forecast (FY)$3.54B
Primerica Business Overview & Revenue Model
Company Description
Primerica Inc., operating with its various subsidiaries, delivers a comprehensive suite of financial services and products primarily aimed at middle-income households throughout the United States and Canada. The company organizes its business into...
How the Company Makes Money
Primerica primarily makes money through (1) insurance underwriting and policy-related revenues, (2) distribution and asset-based fees from investment products and advisory services, and (3) commissions and fees from distributing third-party financ...
Primerica Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, supported by 8% revenue growth, 11% adjusted net operating income growth, 17% adjusted EPS growth, exceptional investment business performance, record assets under management, positive net inflows, strong capital returns, and a 33.1% return on adjusted equity. The main challenges were declining Term Life policies and productivity, below-prior-year licensing levels, continued pressure on middle-income families, and higher expected expense growth. Management expressed confidence in improving distribution trends and life sales comparisons in the second half of 2026.Positive Updates
Strong Second-Quarter Consolidated Growth
Adjusted operating revenues increased 8% year-over-year, adjusted net operating income increased 11%, and adjusted operating EPS increased 17% to $6.41. EPS included a $4.6 million income tax benefit from a tax equity investment, adding roughly $0.15 per diluted share.
Negative Updates
Operating Expenses Increased and Are Expected to Rise Further in the Third Quarter
Consolidated insurance and other operating expenses increased 8% year-over-year to $166 million, driven primarily by higher variable growth-related costs, compensation, and continued technology investments. Expense growth is expected to be around 10%-12% in the third quarter and 6%-7% in the fourth quarter, while full-year 2026 expense growth is expected to be 7%-8%.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Second-Quarter Consolidated Growth
Adjusted operating revenues increased 8% year-over-year, adjusted net operating income increased 11%, and adjusted operating EPS increased 17% to $6.41. EPS included a $4.6 million income tax benefit from a tax equity investment, adding roughly $0.15 per diluted share.
Read all positive updates
Company Guidance
Based on current trends, Primerica expects more favorable comparative distribution results in the second half of 2026, with full year sales force size projected to be flat to down 2% compared to 2025; while the year-over-year comparisons and the number of term policies issued during the second half of 2026 will improve, full year 2026 issued policies are expected to decline by mid-single digits; full year ISP sales are expected to increase 10%-15% in 2026; adjusted direct premiums are expected to grow around 3.5% on a full year basis, the benefits and claims ratio to be around 58%, the DAC amortization and commissions ratio to be around 12%-13%, and the full year operating margin to be approximately 21%, excluding any impact from assumption changes associated with the annual assumption review; expense growth is expected to be around 10%-12% in the third quarter and 6%-7% in the fourth quarter, with expected full year expense growth of 7%-8% in 2026; effective tax rates are expected to be around 23% and 22% in the third and fourth quarters, respectively.Primerica Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.40B | 3.23B | 3.09B | 2.75B | 2.66B | 2.71B |
| Gross Profit | 2.45B | 2.60B | 1.31B | 1.10B | 1.03B | 1.06B |
| EBITDA | 1.07B | 1.02B | 987.68M | 830.30M | 780.07M | 703.98M |
| Net Income | 796.21M | 751.23M | 470.52M | 576.60M | 472.07M | 477.36M |
Balance Sheet | ||||||
| Total Assets | 14.78B | 15.01B | 14.58B | 15.03B | 14.64B | 16.12B |
| Cash, Cash Equivalents and Short-Term Investments | 605.13M | 1.98B | 3.64B | 3.33B | 3.05B | 3.18B |
| Total Debt | 642.57M | 1.82B | 1.95B | 2.04B | 2.08B | 2.04B |
| Total Liabilities | 12.26B | 12.57B | 12.32B | 12.97B | 12.61B | 14.03B |
| Stockholders Equity | 2.52B | 2.45B | 2.26B | 2.07B | 2.03B | 2.08B |
Cash Flow | ||||||
| Free Cash Flow | 859.61M | 875.13M | 832.86M | 658.62M | 731.86M | 632.27M |
| Operating Cash Flow | 891.75M | 901.18M | 862.09M | 692.52M | 757.66M | 656.96M |
| Investing Cash Flow | -284.15M | -235.57M | -232.25M | -90.05M | -200.05M | -923.38M |
| Financing Cash Flow | -627.10M | -599.64M | -551.14M | -479.62M | -457.85M | 107.97M |
Primerica Technical Analysis
Negative
301.09
Price Trends
286.69
Negative
291.91
Negative
276.69
Negative
Market Momentum
-1.19
Negative
39.49
Neutral
61.64
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 301.09 is above the 20-day moving average (MA) of 278.08, above the 50-day MA of 286.69, and above the 200-day MA of 276.69, indicating a bearish trend. The MACD of -1.19 indicates Negative momentum. The RSI at 39.49 is Neutral, neither overbought nor oversold. The STOCH value of 61.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRI.
Primerica Risk Analysis
Primerica disclosed 40 risk factors in its most recent earnings report. Primerica reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primerica Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.45B | 11.00 | 32.55% | 1.69% | 8.23% | 23.45% | |
71 Outperform | $2.71B | 6.89 | 8.86% | 4.84% | 13.68% | 16.86% | |
70 Outperform | $4.96B | 18.07 | 10.82% | 1.30% | 5.72% | 7.05% | |
69 Neutral | $11.90B | 10.17 | 19.84% | 0.81% | 5.62% | 8.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $249.43M | 5.83 | 9.13% | ― | -1.14% | 73.36% | |
50 Neutral | $2.61B | 3.57 | 13.17% | ― | 2.62% | 33.55% |
* Financial Sector Average
PRI
Primerica
274.43
15.74
6.08%
CNO
CNO Financial
53.66
14.09
35.62%
SNFCA
Security National Financial
9.15
1.27
16.04%
GL
Globe Life
154.79
20.89
15.60%
BHF
Brighthouse Financial
45.41
-1.40
-2.99%
FG
F&G Annuities & Life Inc
20.66
-7.84
-27.52%
Primerica Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Primerica posts strong Q2 2026 financial results
Positive
Aug 5, 2026
On August 5, 2026, Primerica reported second quarter 2026 results showing total revenues of $865 million, up 9% from a year earlier, and net income of $202 million, up 13%, with diluted EPS rising 19% to $6.45 and ROE reaching 32.1%. Adjusted oper...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.