PRIMORIS SERVICES CORP (NYSE:PRIM), an undervalued stock with good fundamentals.

Discover PRIMORIS SERVICES CORP (NYSE:PRIM), an undervalued stock highlighted by our stock screener. PRIM showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

How We Gauge Valuation for PRIM

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. PRIM scores a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 88.00% of the companies listed in the same industry.
• PRIM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.21.
• Based on the Price/Forward Earnings ratio, PRIM is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, PRIM is valued a bit cheaper.
• 90.00% of the companies in the same industry are more expensive than PRIM, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 92.00% of the companies listed in the same industry.
• PRIM has a very decent profitability rating, which may justify a higher PE ratio.
• PRIM's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.

Exploring PRIM's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, PRIM has achieved a 6:

• PRIM has a Return On Assets of 4.89%. This is in the better half of the industry: PRIM outperforms 68.00% of its industry peers.
• PRIM's Return On Equity of 14.26% is fine compared to the rest of the industry. PRIM outperforms 68.00% of its industry peers.
• The Return On Invested Capital of PRIM (10.10%) is better than 70.00% of its industry peers.
• The 3 year average ROIC (7.18%) for PRIM is below the current ROIC(10.10%), indicating increased profibility in the last year.
• In the last couple of years the Operating Margin of PRIM has grown nicely.

A Closer Look at Health for PRIM

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. PRIM has earned a 6 out of 10:

• PRIM has an Altman-Z score of 3.13. This indicates that PRIM is financially healthy and has little risk of bankruptcy at the moment.
• The Debt to FCF ratio of PRIM is 1.37, which is an excellent value as it means it would take PRIM, only 1.37 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of PRIM (1.37) is better than 76.00% of its industry peers.
• PRIM has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
• PRIM's Debt to Equity ratio of 0.38 is fine compared to the rest of the industry. PRIM outperforms 64.00% of its industry peers.

Growth Insights: PRIM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. PRIM has achieved a 6 out of 10:

• PRIM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.76%, 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 12.45% 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.
• PRIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.68% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.