Primerica Intrinsic Value Calculation – Primerica Launches $425 Million Share Buyback Initiative
December 18, 2023
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This initiative will enable the company to purchase its own shares of common stock from the open market or through privately negotiated transactions. The program is expected to reduce the number of shares outstanding, thereby increasing the stock price and generating greater value for shareholders. Primerica ($NYSE:PRI)’s stock has made impressive gains over the past year, providing a solid foundation for this buyback program. The company has a wide range of products and services, including term life insurance, mutual funds, and various other investment products. Primerica’s mission is to help hardworking families across North America achieve financial freedom and security. Through its strong financial performance and commitment to customer service, Primerica has become one of the most trusted and respected names in the financial services industry.
The $425 million share buyback program is a testament to the company’s continued commitment to creating value for its shareholders. By reducing the number of shares outstanding and increasing the stock price, Primerica is set to benefit current shareholders while also providing a more attractive investment opportunity for potential buyers. This program further emphasizes Primerica’s dedication to rewarding its shareholders and providing a solid foundation for future success.
Market Price
On Monday, PRIMERICA announced a $425 million share buyback initiative. This news was met with a drop in stock price, as shares opened at $208.4 and closed at $207.9, a decrease of 0.8% from their last closing price of $209.6. The share buyback initiative is intended to increase shareholder value by reducing the amount of outstanding shares and increasing the earnings per share (EPS) of the company in the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Primerica. More…
| Total Revenues | Net Income | Net Margin |
| 2.78k | 470.25 | 17.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Primerica. More…
| Operations | Investing | Financing |
| 657.85 | -191.06 | -436.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Primerica. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.43k | 12.12k | 66.01 |
Key Ratios Snapshot
Some of the financial key ratios for Primerica are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | – | 23.1% |
| FCF Margin | ROE | ROA |
| 23.1% | 18.5% | 2.8% |
Analysis – Primerica Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of PRIMERICA‘s financials and have determined that the fair value of PRIMERICA shares is $176.0. This value was calculated using our proprietary Valuation Line. We can see that PRIMERICA’s stock is currently trading at a price of $207.9, which is overvalued by 18.1%. This suggests that now may be an opportune time to buy into the company. However, we advise investors to always do their own research and due diligence before investing in any stock. More…
Peers
The company provides a variety of products and services, including life insurance, investment products, and credit protection products. Primerica Inc. is headquartered in Duluth, Georgia. The company’s competitors include Genworth Financial Inc, Great Eastern Holdings Ltd, and T&D Holdings Inc.
– Genworth Financial Inc ($NYSE:GNW)
Genworth Financial Inc is a global financial services company with operations in the United States, Canada, Australia, and Europe. The company has a market capitalization of $2.28 billion as of 2022 and a return on equity of 6.09%. The company offers a range of financial products and services, including life insurance, long-term care insurance, mortgage insurance, and annuities. Genworth Financial Inc is headquartered in Richmond, Virginia.
– Great Eastern Holdings Ltd ($SGX:G07)
Great Eastern Holdings Ltd is a leading insurance company in Asia. The company has a market cap of 8.59B as of 2022 and a Return on Equity of 7.45%. Great Eastern Holdings Ltd offers a wide range of insurance products and services, including life, health, and general insurance. The company has a strong presence in Singapore, Malaysia, Indonesia, and Hong Kong.
– T&D Holdings Inc ($TSE:8795)
T&D Holdings Inc is a Japanese company that provides life insurance and annuity products. As of 2022, the company had a market capitalization of 838.76 billion yen and a return on equity of -0.05%. The company’s products are available through a network of agents and brokers in Japan.
Summary
Primerica has recently announced a new initiative to buy back up to $425 million of its common stock. This type of move indicates that the company has confidence in its own future performance and sees its stock as undervalued. Analysts suggest that this buyback could be a signal of a strong dividend increase or other potential return of capital to shareholders. The move may also suggest that Primerica views its own stock as a safer long-term investment compared to other opportunities.
The buyback could also be an indicator that the company is optimistic about the overall economic outlook and its own competitive position. Investors should definitely keep their eyes on Primerica as they assess their own portfolios.
