Primerica, Inc. (PRI)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
Primerica, Inc. trades at USD312.75, which is 116% below the USD674.65 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 81 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 13.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Primerica, Inc.
Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. It operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities; and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives to middle-income households. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.
PRI passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Burgundy Asset Management, Burgundy Asset Management Ltd.$356.87M · 3.4% of book
- Glenn Greenberg, Brave Warrior Advisors, LLC$220.25M · 5.5% of book
- Lyrical Asset Management, LYRICAL ASSET MANAGEMENT LP$126.75M · 1.9% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$66.12M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$43.28M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Primerica, Inc. (PRI) undervalued?
Against our discounted cash flow estimate of USD674.65, PRI at USD312.75 is 116% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own PRI?
12 of the institutions we track reported a position in PRI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is PRI's P/E ratio?
PRI trades at 13.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for PRI, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.