Primerica(US:PRI) ZACKSยท2024-07-02 18:25Company Performance - Primerica's shares have increased by 15.3% year to date, outperforming the industry increase of 9%, the Finance sector's rise of 5.3%, and the Zacks S&P 500 composite's increase of 15% [1] - The company's earnings have risen by 17.6% over the past five years, surpassing the industry average of 5.9% [1] Financial Metrics - Primerica has a trailing 12-month Return on Equity (ROE) of 27.4%, significantly higher than the industry average of 15.5% [2] - The Return on Invested Capital (ROIC) for the trailing 12 months is 7%, compared to the industry average of 0.7%, indicating effective fund utilization [3] Market Position and Growth - Strong demand for protection products is expected to drive sales growth, with management estimating a more than 3% increase in sales force size in 2024 [4] - The company anticipates a 3-5% rise in the number of Term Life policies and high single-digit growth in Investment and Savings Products sales [5] Interest Rate Environment - Life insurers like Primerica benefit from an improved interest rate environment, which is expected to enhance net investment income [6] Cash Flow and Dividends - Primerica's free cash flow conversion has remained above 100% over the last several quarters, reflecting solid earnings [7] - The company has a 10-year CAGR of 20% in dividends and has $315.9 million worth of shares remaining under authorization for buybacks [10] Earnings Estimates - The Zacks Consensus Estimate for Primerica's 2024 earnings is $17.66 per share, indicating a 9.9% increase on 6.7% higher revenues of $3 billion [8] - For 2025, the earnings estimate is $19.64 per share, reflecting an 11.2% increase on 5.3% higher revenues of $3.2 billion [8]