Education
About Us
Working with TipRanks
Follow Us
Primerica (PRI)
NYSE:PRI
Top Page
Primerica
(NYSE:PRI)
77Outperform
Positive Factors
Earnings Performance
PRI reported earnings beats across all segments, strong sales and flows in ISP and a higher operating margin in Term Life.
Sales Growth
Sales of $3.6B were above estimates and up 28% year-over-year, benefiting from demand for mutual funds, annuities and managed accounts.
Segment Growth
Stable Term Life segment and continued growth in I&S Products segment should support the share price going forward.
Negative Factors
Economic Uncertainty
PRI posted year-over-year declines in recruiting and productivity, citing growing economic uncertainty.
Equity Market Correlation
Momentum will slow from here due to high correlation with equity markets.
Term Life Expenses
Term Life remains weak from higher cost of living and investment income growth is likely to slow.
Primerica (PRI) vs. S&P 500 (SPY)
Market Cap
$8.83B
Dividend Yield1.34%
Average Volume (3M)193.20K
Price to Earnings (P/E)18.1
Beta (1Y)0.83
Revenue Growth10.18%
EPS Growth-9.75%
CountryUS
Employees2,289
SectorFinancial
Sector Strength87
IndustryInsurance - Life
Share Statistics
EPS (TTM)5.02
Shares Outstanding32,859,085
10 Day Avg. Volume182,706
30 Day Avg. Volume193,199
Financial Highlights & Ratios
PEG Ratio3.74
Price to Book (P/B)3.98
Price to Sales (P/S)0.00
P/FCF Ratio10.87
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit3.54
Enterprise Value/Ebitda4.16
Forecast
1Y Price Target
$300.57Price Target Upside9.98% Upside
Rating ConsensusHold
Number of Analyst Covering8
Primerica Business Overview & Revenue Model
Company DescriptionPrimerica, Inc. is a leading financial services company based in the United States, primarily focused on serving middle-income families. The company operates in the financial services sector, providing a range of products including term life insurance, mutual funds, annuities, and other financial products. Primerica's core mission is to help families become properly protected, debt-free, and financially independent through its network of trained representatives.
How the Company Makes MoneyPrimerica makes money through a multi-level marketing (MLM) business model where independent representatives sell financial products and services directly to consumers. The company's primary source of revenue comes from the sale of term life insurance policies. Representatives also earn commissions by selling investment and savings products such as mutual funds and annuities. Primerica further earns income through fees associated with the management and administration of investment products. Additionally, the company benefits from its large sales force, which helps expand its customer base and increase product sales. Key partnerships with financial institutions and investment management firms also contribute to its revenue streams by providing a range of products that Primerica representatives can offer to clients.
Primerica Financial Statement Overview
Summary
Primerica shows strong financial performance with robust income growth and profitability. The balance sheet is solid with no debt, enhancing financial flexibility. Cash flows are strong, supporting potential future investments. Minor concerns exist with reduced total assets and equity, but these are offset by improved cash and profit margins.Income Statement
Primerica's income statement shows strong growth and profitability. The gross profit margin is consistently high, reflecting efficient cost management. The net profit margin for 2024 was robust, though there was a decrease in net income compared to 2023. Revenue growth has been positive, highlighting a strong upward trend. EBIT and EBITDA margins are healthy, indicating stable operational performance.85
Very Positive
Balance Sheet
The balance sheet is solid, with no outstanding debt in 2024, which significantly strengthens the company's financial position. The equity ratio is stable, and ROE is strong, showcasing effective utilization of shareholder equity. However, the decrease in total assets and stockholders' equity from 2023 is a slight concern, though it is balanced by the reduction in liabilities.78
Positive
Cash Flow
Cash flow is robust, with strong operating cash flow relative to net income, indicating good cash generation capabilities. Free cash flow growth is positive, supporting potential future investments or distributions. The cash flow statement reflects a consistent ability to generate cash efficiently, which is crucial for stability and future growth.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.09B | 2.82B | 2.72B | 2.71B | 2.22B | Gross Profit |
| 3.09B | 2.48B | 2.40B | 2.41B | 1.97B | EBIT |
| 1.03B | 1.79B | 526.02M | 437.97M | 445.66M | EBITDA |
| 1.03B | 2.60B | 681.39M | 703.98M | 553.27M | Net Income Common Stockholders |
| 470.52M | 576.60M | 373.01M | 373.36M | 386.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.68B | 1.62B | 3.05B | 3.18B | 3.01B | Total Assets |
| 14.58B | 15.03B | 15.35B | 16.12B | 14.91B | Total Debt |
| 1.95B | 2.04B | 2.08B | 2.04B | 1.77B | Net Debt |
| 1.27B | 1.43B | 1.59B | 1.65B | 1.23B | Total Liabilities |
| 12.32B | 12.96B | 13.63B | 14.03B | 13.07B | Stockholders Equity |
| 2.26B | 2.07B | 1.72B | 2.08B | 1.84B |
| Cash Flow | Free Cash Flow | |||
| 832.86M | 658.62M | 731.86M | 632.27M | 615.79M | Operating Cash Flow |
| 862.09M | 692.52M | 757.66M | 656.96M | 643.42M | Investing Cash Flow |
| -232.25M | -90.05M | -200.05M | -923.38M | -53.53M | Financing Cash Flow |
| -551.14M | -479.62M | -457.85M | 107.97M | -301.79M |
Primerica Technical Analysis
Positive
273.29
Price Trends
271.49
Positive
276.25
Negative
273.18
Positive
Market Momentum
0.35
Negative
56.79
Neutral
65.81
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 273.29 is above the 20-day moving average (MA) of 261.66, above the 50-day MA of 271.49, and above the 200-day MA of 273.18, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRI.
Primerica Risk Analysis
Primerica disclosed 39 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.83B | 18.13 | 23.87% | 1.34% | 10.18% | -9.75% | |
76 Outperform | $14.03B | 9.49 | 14.68% | 2.09% | 1.69% | 25.54% | |
74 Outperform | $10.07B | 9.92 | 20.47% | 0.81% | 5.41% | 16.60% | |
70 Outperform | $4.07B | 8.16 | 12.72% | 2.85% | -1.72% | 95.91% | |
69 Neutral | $6.03B | 82.26 | 1.24% | 3.44% | 3.55% | 8.91% | |
68 Neutral | $5.69B | 4.74 | 16.91% | 5.40% | 8.31% | -2.30% | |
64 Neutral | $12.73B | 9.82 | 7.91% | 17015.08% | 12.18% | -5.69% |
* Financial Sector Average
Performance Comparison
PRI
Primerica
273.29
52.37
23.71%
LNC
Lincoln National
35.00
7.12
25.54%
GL
Globe Life
120.72
36.38
43.13%
UNM
Unum Group
80.86
29.28
56.77%
JXN
Jackson Financial Incorporation
87.16
14.40
19.79%
FG
F&G Annuities & Life Inc
31.43
-6.47
-17.07%
Primerica Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 2.47%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and significant growth in the Investment and Savings Products segment and mortgage business. However, challenges were noted in recruiting, new life licenses, and term life sales due to economic uncertainty and cost of living pressures. Overall, while there are significant achievements, the challenges faced indicate a more cautious outlook.Q1-2025 Updates
Positive Updates
Strong Financial Results Amid Economic Uncertainty
Adjusted net operating income for the quarter was $168 million, up 14% year-over-year, while diluted adjusted operating EPS increased 20% to $5.02.
Investment and Savings Products Segment Growth
Total sales during the quarter were $3.6 billion, up 28% year-over-year. Net inflows were very strong at $839 million versus $274 million in the prior year period.
Mortgage Business Performance
In the U.S., closed loans reached $93.5 million, up 31%. In Canada, closed loans were $43.3 million, up 78%.
Strong Capital Position
Primerica Life estimated RBC ratio was 470%, with the holding company ending the quarter with $407 million in cash and invested assets.
Shareholder Returns
Returned $153 million to stockholders through $118 million in share repurchases and $35 million in regular dividends.
Negative Updates
Decline in Recruiting and New Life Licenses
Recruited a total of 100,867 individuals, representing a 9% decline year-over-year. New life licenses declined 5% versus the prior year period.
Challenges in Term Life Sales
Issued 86,415 new Term Life policies, with productivity at 0.19 policies per rep, just below the historical range.
Economic Headwinds Impacting Sales
Economic uncertainty and cost of living pressures have impacted Term Life insurance sales and recruiting.
Resistance in Investment Sales Momentum
Since April, there has been some resistance to investment sales momentum due to continued market volatility and broader economic uncertainty.
Company Guidance
During the Primerica First Quarter 2025 earnings call, the company provided several key metrics and guidance for the year. Primerica reported an adjusted net operating income of $168 million, a 14% increase year-over-year, and a diluted adjusted operating EPS of $5.02, up 20%. The company returned $153 million to shareholders through $118 million in share repurchases and $35 million in dividends. Despite a 9% decline in recruiting and a 5% decrease in new life licenses, the total number of life-licensed representatives grew 7% compared to March 2024. Primerica issued 86,415 new Term Life policies, representing $28 billion in new protection, with productivity slightly below historical levels at 0.19 policies per rep. The ISP segment saw strong growth, with total sales of $3.6 billion, a 28% increase year-over-year, and net inflows of $839 million. The company maintains a full-year sales growth expectation in the mid-to-high single digits for 2025. In the Mortgage business, U.S. closed loans were up 31% to $93.5 million, and Canadian closed loans increased by 78% to $43.3 million. Primerica emphasized its resilient business model, with a focus on financial education and support for middle-income families, and highlighted plans to grow its sales force by around 3% in 2025.Primerica Corporate Events
Financial Disclosures
Primerica Reports Strong Q1 2025 Financial Results
Positive
May 7, 2025
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.
Spark’s Take on PRI Stock
According to Spark, TipRanks’ AI Analyst, PRI is a Outperform.
Primerica’s solid financial performance, highlighted by strong cash flow and profitability, contributes to a positive outlook. However, technical indicators suggest caution, with the stock in a bearish trend. While valuation is fair, increased operating expenses and economic pressures on insurance sales are potential risks. Overall, the strengths in financials and earnings slightly outweigh the weaknesses in market trends and expenses.
To see Spark’s full report on PRI stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.