Primerica distributes financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The company was founded in 1977 and is based in Duluth, Georgia.
PRI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PRI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Primerica Inc ranked in the 65th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for PRI, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 91. Notably, its equity weight is greater than 82.1% of US equities in the Financial Services sector yielding a positive free cash flow.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than just 21.1% of the free cash flow producing stocks we're observing.
PRI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 38.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Primerica Inc? See CNFR, ADS, SG, TRV, and AIZ.
Primerica, Inc. (PRI) Q2 2020 Earnings Conference Call August 06, 2020 10:00 AM ET Company Participants Nicole Russell - Head of Investor Relations Glenn Williams - Chief Executive Officer Alison Rand - Chief Financial Officer Conference Call Participants Andrew Kligerman - Credit Suisse Dan Bergman - Citi Mark Hughes -...
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DULUTH, Ga.--(BUSINESS WIRE)--Primerica, Inc. (NYSE:PRI) announced today that it will hold a webcast on Thursday, August 6, 2020 at 10:00 a.m. Eastern Time to discuss the Company’s results for the second quarter ended June 30, 2020, as well as other business-related matters, including future expectations. A news release announcing the quarter’s results will be distributed on Wednesday, August 5, 2020, after the close of the market. The earnings news release, financial supplement and live webcas