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Primerica
(NYSE:PRI)
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Rating:79Outperform
Price Target:
$374.00
▲(18.88% Upside)
Action:Reiterated
Date:08/07/26
PRI scores well primarily on strong financial performance (healthy margins, strong cash conversion, and improved leverage). Valuation is supportive with a moderate P/E and modest yield. The technical setup is bullish but somewhat overextended (RSI ~70), and the latest earnings call is constructive due to ISP-driven growth and capital strength, tempered by Term Life sales/persistency headwinds and higher expense guidance.
Positive Factors
Cash Generation Quality
Free cash flow roughly matching net income indicates high earnings quality and durable cash conversion. That supports capital returns, deleveraging and reinvestment capacity, giving the company long-term financial flexibility and resilience across business cycles.
Negative Factors
Declining Term Life Production
A notable drop in new term life policies reduces future premium roll‑in and the core underwriting base. Because life remains a principal profit driver, prolonged weakness in production can erode long‑term revenue durability and increase reliance on ISP growth to offset declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation Quality
Free cash flow roughly matching net income indicates high earnings quality and durable cash conversion. That supports capital returns, deleveraging and reinvestment capacity, giving the company long-term financial flexibility and resilience across business cycles.
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.
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The Fly
The FlyPrimerica (PRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.57B
Dividend Yield1.43%
Average Volume (3M)195.41K
Price to Earnings (P/E)12.5
Beta (1Y)0.75
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. Volume161,741
30 Day Avg. Volume195,412
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$324.80Price Target Upside3.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)24.95
Revenue Forecast (FY)$3.52B
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 makes money primarily from (1) underwriting and distributing term life insurance and (2) earning fees and commissions from distributing investment and annuity products. Life insurance is a core profit driver: Primerica collects premiums ...
Primerica Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents predominantly positive operational and financial momentum driven by strong performance in the fee-like ISP business: record ISP sales, double-digit growth in key profitability metrics, rising client assets and net inflows, and meaningful capital returns. Offsetting these positives are clear challenges in the Term Life sales channel (notably a 14% decline in new policies), elevated lapses/persistency headwinds, widening unrealized investment losses from interest rates, and an expected ramp in expenses. Management provided constructive but cautious guidance for Term Life stabilization and described actions to support recruiting and productivity. On balance, the favorable growth, margin improvement, and cash generation from the ISP business materially outweigh the Term Life and expense headwinds in the near term.Positive Updates
Consolidated Revenue and Income Growth
Adjusted operating revenues increased 9% year-over-year in Q1 2026 and adjusted net operating income rose 13% year-over-year, reflecting broad-based strength across the business.
Negative Updates
Term Life New Policy Decline
Term Life issued 74,054 new policies in Q1, a 14% decline year-over-year, and estimated annualized issued premiums declined 10%. Management now expects full-year Term Life policies issued to be flat to down about 2%.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue and Income Growth
Adjusted operating revenues increased 9% year-over-year in Q1 2026 and adjusted net operating income rose 13% year-over-year, reflecting broad-based strength across the business.
Read all positive updates
Company Guidance
Primerica guided FY2026 with Term Life policies issued flat to down ~2% and adjusted direct premiums up about 4% year‑over‑year, with an expected benefits & claims ratio around 58%, DAC amortization & insurance commissions ~12–13% and an operating margin near 21%; ISP (Investment & Savings Products) sales are expected to grow in the upper single‑digit range for 2026 (ISP now ~40% of consolidated revenues after Q1 ISP revenues +21% and pretax income +24%), full‑year operating expense growth is forecast at ~7–8% (Q2 outlook up ~10–12%), and management noted capital/liquidity metrics including Primerica Life estimated RBC ~430% and holding company cash/invested assets ~$556M (Q1 client assets $127B, Q1 net inflows $362M), while Q1 shareholder returns totaled $179M ($141M repurchases, $38M dividends).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 | 1.15B | 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
Positive
314.59
Price Trends
297.29
Positive
282.52
Positive
269.39
Positive
Market Momentum
4.79
Positive
49.93
Neutral
13.21
Positive
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 314.59 is below the 20-day moving average (MA) of 316.09, above the 50-day MA of 297.29, and above the 200-day MA of 269.39, indicating a neutral trend. The MACD of 4.79 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.57B | 12.54 | 32.55% | 1.42% | 8.23% | 23.45% | |
74 Outperform | $13.67B | 11.79 | 20.28% | 0.69% | 5.24% | 21.35% | |
73 Outperform | $3.48B | 9.15 | 8.86% | 3.27% | 13.68% | 16.86% | |
70 Outperform | $8.44B | 3.77 | 21.99% | 4.35% | 12.32% | 97.86% | |
69 Neutral | $8.85B | 167.98 | 1.04% | 2.85% | 15.09% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $14.53B | 21.61 | 6.43% | 2.19% | 3.34% | -48.74% |
* Financial Sector Average
PRI
Primerica
312.68
54.22
20.98%
LNC
Lincoln National
45.28
6.15
15.71%
GL
Globe Life
180.67
43.22
31.45%
UNM
Unum Group
92.70
23.48
33.93%
JXN
Jackson Financial Incorporation
134.38
41.10
44.05%
FG
F&G Annuities & Life Inc
27.45
-6.71
-19.63%
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...
Business Operations and StrategyPrivate Placements and Financing
Primerica Extends Revolving Credit Facility, Enhancing Liquidity
Positive
Jun 2, 2026
On June 2, 2026, Primerica amended and restated its existing $200 million five‑year unsecured revolving credit facility, originally set to expire on June 22, 2026, extending the stated maturity to June 2, 2031 and maintaining capacity for ge...
Executive/Board ChangesShareholder Meetings
Primerica Shareholders Back Board, Pay Plan and Auditor
Positive
May 27, 2026
Primerica, Inc. reported the results of its 2026 annual stockholders’ meeting held on May 21, 2026, where about 91% of outstanding common shares were represented in person or by proxy. All nominated directors, including John A. Addison Jr., ...
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.