Primerica, Inc. (NYSE: PRI) continues to prove its financial strength with its impressive performance over the years. Amidst the limitations caused by the pandemic, the company does not seem to falter, given the fruitful results during the first half of the year. Moreover, dividend payments continue to promise long-term gain and security. However, the stock price has been bearish since August, although it turns out to be undervalued as estimated.
The Impressive Financials of Primerica, Inc.
Operating Revenue and Operating Costs
Formidable Primerica, Inc. continues to prosper as time goes by. Since it went public, the company demonstrated how it prudently managed its operations that could offer stability and gains to its stakeholders. As insurance became more significant to individuals, the growth of companies in the industry became more visible.
For the last 10 years, the company showed its increasing revenue. In 2010, it amounted to $1.36 billion but fell by 19% in 2011. Since then, the increase became more constant and significant. Having an annual growth rate of 8.4 percent, the revenue remained unstable. At the end of FY 2019, it reached $2.1 billion. This was primarily driven by income from premiums and investments. Indeed, it is impressive that in less than a decade the value almost doubled. And even during this time of uncertainty, it remains unaffected. Hence, we may see a further increase for the next five years as the estimation using the Linear Trend Analysis conveys.
Likewise, the quarterly values showed consistency in revenue growth. Since 2017, the revenue has kept increasing in all quarters. Furthermore, the company remains invincible as the impact of the pandemic does not seem to slow it down. It made the importance of having insurance more apparent. The company managed the operations well. During the first half, the accumulated operating revenue was 5.5% higher than the previous year. This just indicates that
