Primerica (PRI) AI Stock Analysis

• Market Cap: $8.64B
• Dividend Yield: 1.52%
• Average Volume (3M): 178.09K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.84
• Revenue Growth: 5.70%
• EPS Growth: 61.69%
• Country: US
• Employees: 2,289
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 5.46
• Shares Outstanding: 32,391,335
• 10 Day Avg. Volume: 143,932
• 30 Day Avg. Volume: 178,088
• PEG Ratio: -1.40
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 11.13
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $310.86
• Price Target Upside: 17.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $296.00 ▲(11.57% Upside)

Primerica's overall stock score reflects strong financial performance and positive earnings call sentiment, despite technical analysis indicating bearish trends. The company's reasonable valuation and dividend yield add to its appeal, though challenges in revenue and cash flow growth need addressing.

Positive Factors

Investment and Savings Products Growth

The growth in investment and savings products indicates strong demand and effective sales strategies, contributing to long-term revenue stability and expansion.

Strong Mortgage Business Performance

The significant increase in mortgage business underscores Primerica's ability to capitalize on housing market trends, enhancing its revenue diversification and growth prospects.

Robust Recruiting and Sales Force Growth

Expanding the sales force strengthens Primerica's distribution network, supporting future sales growth and market penetration, which is crucial for sustaining long-term business expansion.

Negative Factors

Decline in Term Life Insurance Policies

A decline in new life insurance policies suggests potential challenges in maintaining market share and revenue from this core product line, impacting long-term growth.

Elevated Lapse Rates

High lapse rates in life insurance policies can reduce revenue stability and customer retention, posing risks to long-term profitability and market position.

Recruitment Decline Compared to Previous Year

A decrease in new representative recruitment may limit future sales growth and network expansion, affecting the company's ability to sustain its multi-level marketing model.

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 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: Negative
• Last Price: 265.30
• 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 265.3 is below the 20-day moving average (MA) of 270.91, below the 50-day MA of 270.19, and below the 200-day MA of 270.88, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 41.51 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	74 Outperform	$12.89B	9.06	13.95%	2.26%	1.69%	22.65%
FG	73 Outperform	$3.97B	12.04	8.40%	2.99%	1.78%	0.77%
GL	72 Outperform	$10.97B	10.82	20.02%	0.77%	4.02%	13.01%
PRI	71 Outperform	$8.64B	13.21	31.95%	1.52%	5.70%	61.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LNC	65 Neutral	$7.53B	6.93	12.97%	4.57%	11.33%	-38.17%
JXN	63 Neutral	$6.82B	―	0.30%	3.19%	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.