Life Insurance
Primerica, Inc., together with its subsidiaries, provides financial products to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; 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. The Senior Health segment offers segregated funds; and medicare advantage and supplement products. 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 health and accidental death. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 13% | 14% | 21% | 17% | 18% | 17% | 14% | 14% | 20% | 20% |
ROA | 3.1% | 3% | 3% | 3.3% | 3.5% | 3.4% | 3.2% | 3.2% | 5% | 5.1% |
ROE | 16% | 18% | 25% | 22% | 22% | 21% | 18% | 21% | 28% | 27% |
The average Net Margin over the past 5 years is +16.62%.
The trend of Net Margin over the past 5 years is +0.02%.
The average ROA over the past 5 years is +3.6%.
The trend of ROA over the past 5 years is +0.21%.
The average ROE over the past 5 years is +22.01%.
The trend of ROE over the past 5 years is +0.67%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | - | - | - | - | - | - | - | - | - |
Debt Equity | - | - | - | - | - | - | - | - | - | - |
MIN | ||||||||||
Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 98% | 100% | 98% |
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at 0.98.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 9.2% | 8.2% | 8.3% | 3.5% | -0.18% |
Net Income | 15% | 12% | 14% | 56% | 0.76% |
Stockholders Equity | 7.8% | 7.2% | 4% | 20% | 0.71% |
FCF | - | - | - | - | - |
The Revenue CAGR over the past 5 years is +8.19%.
The trend of Revenue growth rate over the past 5 years is -0.18%.
The Earnings CAGR over the past 5 years is +12.25%.
The trend of Earnings growth rate over the past 5 years is +0.76%.
The Equity CAGR over the past 5 years is +7.17%.
The trend of Equity growth rate over the past 5 years is +0.71%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -.