PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - NYSE:PRIM - US74164F1030 - Common Stock
122.76 USD
+5.13 (+4.36%)
123.2 USD
+0.44 (+0.36%)
We assign a fundamental rating of 6 out of 10 to PRIM. PRIM was compared to 52 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of PRIM get a neutral evaluation. Nothing too spectacular is happening here. PRIM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRIM had positive earnings in the past year.
In the past year PRIM had a positive cash flow from operations.
PRIM had positive earnings in each of the past 5 years.
Each year in the past 5 years PRIM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.31%, PRIM is doing good in the industry, outperforming 65.38% of the companies in the same industry.
PRIM has a better Return On Equity (15.70%) than 71.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.91%, PRIM is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRIM is significantly below the industry average of 17.22%.
The 3 year average ROIC (7.18%) for PRIM is below the current ROIC(10.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 15.7% | ||
| ROIC | 10.91% |
ROA(3y)3.79%
ROA(5y)4.25%
ROE(3y)11.68%
ROE(5y)12.28%
ROIC(3y)7.18%
ROIC(5y)7.76%
1.3 Margins
PRIM's Profit Margin of 3.48% is in line compared to the rest of the industry. PRIM outperforms 55.77% of its industry peers.
In the last couple of years the Profit Margin of PRIM has remained more or less at the same level.
Looking at the Operating Margin, with a value of 5.58%, PRIM is in line with its industry, outperforming 53.85% of the companies in the same industry.
PRIM's Operating Margin has improved in the last couple of years.
PRIM's Gross Margin of 11.34% is on the low side compared to the rest of the industry. PRIM is outperformed by 65.38% of its industry peers.
In the last couple of years the Gross Margin of PRIM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.58% | ||
| PM (TTM) | 3.48% | ||
| GM | 11.34% |
OM growth 3Y-1.97%
OM growth 5Y2.07%
PM growth 3Y-4.92%
PM growth 5Y1.41%
GM growth 3Y-2.49%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRIM is creating some value.
The number of shares outstanding for PRIM has been increased compared to 1 year ago.
The number of shares outstanding for PRIM has been increased compared to 5 years ago.
PRIM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.64 indicates that PRIM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.64, PRIM is doing good in the industry, outperforming 65.38% of the companies in the same industry.
PRIM has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.21, PRIM is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
PRIM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PRIM (0.34) is better than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.09
WACC10%
2.3 Liquidity
PRIM has a Current Ratio of 1.22. This is a normal value and indicates that PRIM is financially healthy and should not expect problems in meeting its short term obligations.
PRIM has a Current ratio of 1.22. This is comparable to the rest of the industry: PRIM outperforms 48.08% of its industry peers.
A Quick Ratio of 1.22 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM has a Quick ratio of 1.22. This is comparable to the rest of the industry: PRIM outperforms 51.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.14% over the past year.
Measured over the past years, PRIM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.96% on average per year.
Looking at the last year, PRIM shows a quite strong growth in Revenue. The Revenue has grown by 15.08% in the last year.
PRIM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.43% yearly.
EPS 1Y (TTM)62.14%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%61.54%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%20.91%
3.2 Future
The Earnings Per Share is expected to grow by 15.61% on average over the next years. This is quite good.
Based on estimates for the next years, PRIM will show a quite strong growth in Revenue. The Revenue will grow by 9.60% on average per year.
EPS Next Y31.27%
EPS Next 2Y20.44%
EPS Next 3Y18.07%
EPS Next 5Y15.61%
Revenue Next Year13.69%
Revenue Next 2Y11.4%
Revenue Next 3Y10.48%
Revenue Next 5Y9.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.50, which indicates a rather expensive current valuation of PRIM.
71.15% of the companies in the same industry are more expensive than PRIM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PRIM to the average of the S&P500 Index (27.43), we can say PRIM is valued inline with the index average.
The Price/Forward Earnings ratio is 21.93, which indicates a rather expensive current valuation of PRIM.
75.00% of the companies in the same industry are more expensive than PRIM, based on the Price/Forward Earnings ratio.
PRIM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued a bit cheaper than 75.00% of the companies in the same industry.
PRIM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRIM is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.27 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
PRIM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRIM has a very decent profitability rating, which may justify a higher PE ratio.
PRIM's earnings are expected to grow with 18.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)1.29
EPS Next 2Y20.44%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.27%, which is pretty low.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.56. PRIM pays more dividend than 82.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
The dividend of PRIM decreases each year by -0.43%.
PRIM has paid a dividend for at least 10 years, which is a reliable track record.
PRIM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.43%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
6.25% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP6.25%
EPS Next 2Y20.44%
EPS Next 3Y18.07%
122.76
+5.13 (+4.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners99.53%
Inst Owner Change-3.64%
Ins Owners0.9%
Ins Owner Change-2.77%
Market Cap6.63B
Analysts86.67
Price Target125.46 (2.2%)
Short Float %4.11%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.43%
DP6.25%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.47%
Min EPS beat(2)46.53%
Max EPS beat(2)52.4%
EPS beat(4)4
Avg EPS beat(4)41.07%
Min EPS beat(4)17.07%
Max EPS beat(4)52.4%
EPS beat(8)8
Avg EPS beat(8)55.93%
EPS beat(12)11
Avg EPS beat(12)49.9%
EPS beat(16)12
Avg EPS beat(16)24.65%
Revenue beat(2)2
Avg Revenue beat(2)9.08%
Min Revenue beat(2)8.43%
Max Revenue beat(2)9.74%
Revenue beat(4)4
Avg Revenue beat(4)6.86%
Min Revenue beat(4)2.17%
Max Revenue beat(4)9.74%
Revenue beat(8)6
Avg Revenue beat(8)3.53%
Revenue beat(12)9
Avg Revenue beat(12)4.31%
Revenue beat(16)10
Avg Revenue beat(16)2.69%
PT rev (1m)27.96%
PT rev (3m)46.6%
EPS NQ rev (1m)4.08%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)10.76%
EPS NY rev (3m)10.75%
Revenue NQ rev (1m)4.51%
Revenue NQ rev (3m)5.03%
Revenue NY rev (1m)4.25%
Revenue NY rev (3m)4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 21.93 | ||
| P/S | 0.96 | ||
| P/FCF | 13.27 | ||
| P/OCF | 9.97 | ||
| P/B | 4.32 | ||
| P/tB | 13.84 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)5.01
EY4.08%
EPS(NY)5.6
Fwd EY4.56%
FCF(TTM)9.25
FCFY7.54%
OCF(TTM)12.32
OCFY10.03%
SpS128.3
BVpS28.41
TBVpS8.87
PEG (NY)0.78
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 15.7% | ||
| ROCE | 15.37% | ||
| ROIC | 10.91% | ||
| ROICexc | 12.92% | ||
| ROICexgc | 25.65% | ||
| OM | 5.58% | ||
| PM (TTM) | 3.48% | ||
| GM | 11.34% | ||
| FCFM | 7.21% |
ROA(3y)3.79%
ROA(5y)4.25%
ROE(3y)11.68%
ROE(5y)12.28%
ROIC(3y)7.18%
ROIC(5y)7.76%
ROICexc(3y)8.27%
ROICexc(5y)9.34%
ROICexgc(3y)16.68%
ROICexgc(5y)17.14%
ROCE(3y)10.11%
ROCE(5y)10.93%
ROICexcg growth 3Y12.35%
ROICexcg growth 5Y11.28%
ROICexc growth 3Y9.48%
ROICexc growth 5Y2.67%
OM growth 3Y-1.97%
OM growth 5Y2.07%
PM growth 3Y-4.92%
PM growth 5Y1.41%
GM growth 3Y-2.49%
GM growth 5Y0.73%
F-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 185.78% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 11.21 | ||
| Cash Conversion | 139.78% | ||
| Profit Quality | 207.38% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.64 |
F-Score7
WACC10%
ROIC/WACC1.09
Cap/Depr(3y)108.07%
Cap/Depr(5y)105.81%
Cap/Sales(3y)1.98%
Cap/Sales(5y)2.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)62.14%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%61.54%
EPS Next Y31.27%
EPS Next 2Y20.44%
EPS Next 3Y18.07%
EPS Next 5Y15.61%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%20.91%
Revenue Next Year13.69%
Revenue Next 2Y11.4%
Revenue Next 3Y10.48%
Revenue Next 5Y9.6%
EBIT growth 1Y30.38%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year49.21%
EBIT Next 3Y22.67%
EBIT Next 5Y21.56%
FCF growth 1Y2134.86%
FCF growth 3YN/A
FCF growth 5Y74.64%
OCF growth 1Y610.62%
OCF growth 3Y85.41%
OCF growth 5Y33.92%