Last Updated: 10 Nov 2024
Executive Summary
Primerica Inc. (PRI) is a financial services company that provides life insurance, investments, and other financial products to middle-income households in the United States and Canada. The company has a strong financial position with a market capitalization of $9.94 billion, EBITDA of $1.02 billion, and EPS of $19.95. The stock is currently trading at $297.73, which is below its 52-week high of $298.29 and above its 52-week low of $183.51. Analysts have a consensus rating of "Hold" on the stock, with a target price of $303.83.
Company Overview
Primerica was founded in 1977 and is headquartered in Duluth, Georgia. The company has a network of over 130,000 independent representatives who sell its products to customers. Primerica's core products include term life insurance, whole life insurance, accidental death and dismemberment insurance, and annuities. The company also offers a variety of investment products, such as mutual funds, variable annuities, and 529 plans.
Fundamental Analysis
Primerica's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 6.4% over the past five years. Net income has grown at a CAGR of 9.1% over the same period. Primerica's profit margin is 14.5%, which is higher than the industry average. The company's return on equity (ROE) is 32.5%, which is also higher than the industry average.
Primerica's balance sheet is also strong. The company has a debt-to-equity ratio of 0.34, which is lower than the industry average. Primerica also has a strong cash position, with $1.2 billion in cash and equivalents on hand.
Technical Analysis
The technical analysis of Primerica's stock price shows that the stock is in a bullish trend. The stock has been trading above its 50-day and 200-day moving averages for the past several months. The stock's relative strength index (RSI) is also above 50, which indicates that the stock is overbought.
Short Term Outlook
The short-term outlook for Primerica's stock is positive. The stock is in a bullish trend and is trading above its key moving averages. The RSI is also above 50, which indicates that the stock is overbought. However, the stock is approaching its 52-week high, so there is some risk of a pullback.
Long Term Outlook
The long-term outlook for Primerica's stock is also positive. The company has a strong financial position and is well-positioned to continue to grow its business. The company's products are in demand by middle-income households, and the company has a strong network of independent representatives to sell its products.
Analyst Recommendations
Analysts have a consensus rating of "Hold" on Primerica's stock. The average target price is $303.83, which is slightly above the current stock price. Six analysts have a rating of "Hold", while one analyst has a rating of "Buy". No analysts have a rating of "Strong Buy", "Sell", or "Strong Sell".
