PRIMORIS SERVICES CORP (NYSE:PRIM) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screener has singled out PRIMORIS SERVICES CORP (NYSE:PRIM) as a stellar value proposition. PRIM not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Assessment of PRIM

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. PRIM boasts a 7 out of 10:

• PRIM's Price/Earnings ratio is rather cheap when compared to the industry. PRIM is cheaper than 84.31% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.13, PRIM is valued a bit cheaper.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 88.24% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of PRIM to the average of the S&P500 Index (21.03), we can say PRIM is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 90.20% of the companies listed in the same industry.
• 92.16% of the companies in the same industry are more expensive than PRIM, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of PRIM may justify a higher PE ratio.
• A more expensive valuation may be justified as PRIM's earnings are expected to grow with 13.43% in the coming years.

What does the Profitability looks like for PRIM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. PRIM scores a 6 out of 10:

• PRIM has a better Return On Assets (4.31%) than 64.71% of its industry peers.
• The Return On Equity of PRIM (12.83%) is better than 66.67% of its industry peers.
• PRIM has a better Return On Invested Capital (8.99%) than 70.59% of its industry peers.
• The 3 year average ROIC (7.18%) for PRIM is below the current ROIC(8.99%), indicating increased profibility in the last year.
• In the last couple of years the Operating Margin of PRIM has grown nicely.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. PRIM has achieved a 5 out of 10:

• PRIM's Altman-Z score of 2.96 is fine compared to the rest of the industry. PRIM outperforms 62.75% of its industry peers.
• The Debt to FCF ratio of PRIM is 1.92, which is an excellent value as it means it would take PRIM, only 1.92 years of fcf income to pay off all of its debts.
• PRIM's Debt to FCF ratio of 1.92 is fine compared to the rest of the industry. PRIM outperforms 74.51% of its industry peers.
• A Debt/Equity ratio of 0.47 indicates that PRIM is not too dependend on debt financing.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. PRIM has received a 6 out of 10:

• PRIM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.38%, which is quite impressive.
• The Earnings Per Share has been growing by 18.96% on average over the past years. This is quite good.
• The Revenue has grown by 11.40% in the past year. This is quite good.
• Measured over the past years, PRIM shows a quite strong growth in Revenue. The Revenue has been growing by 15.43% on average per year.
• The Earnings Per Share is expected to grow by 13.68% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of PRIM for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.