PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
NYSE:PRIM - New York Stock Exchange, Inc. - US74164F1030 - Common Stock - Currency: USD
Overall PRIM gets a fundamental rating of 6 out of 10. We evaluated PRIM against 49 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, PRIM could be worth investigating further for value investing!.
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.
In the past 5 years PRIM has always been profitable.
In the past 5 years PRIM always reported a positive cash flow from operatings.
1.2 Ratios
PRIM has a better Return On Assets (4.89%) than 65.31% of its industry peers.
PRIM's Return On Equity of 14.26% is fine compared to the rest of the industry. PRIM outperforms 65.31% of its industry peers.
PRIM has a Return On Invested Capital of 10.10%. This is in the better half of the industry: PRIM outperforms 69.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRIM is significantly below the industry average of 16.67%.
The last Return On Invested Capital (10.10%) for PRIM is above the 3 year average (7.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 14.26% | ||
| ROIC | 10.1% |
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
The Profit Margin of PRIM (3.12%) is better than 61.22% of its industry peers.
PRIM's Profit Margin has been stable in the last couple of years.
PRIM has a Operating Margin (5.24%) which is comparable to the rest of the industry.
PRIM's Operating Margin has improved in the last couple of years.
PRIM has a Gross Margin of 11.22%. This is in the lower half of the industry: PRIM underperforms 67.35% 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 | 5.24% | ||
| PM (TTM) | 3.12% | ||
| GM | 11.22% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRIM is destroying value.
The number of shares outstanding for PRIM has been increased compared to 1 year ago.
PRIM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRIM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.35 indicates that PRIM is not in any danger for bankruptcy at the moment.
PRIM has a better Altman-Z score (3.35) than 61.22% of its industry peers.
PRIM has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.37, PRIM is doing good in the industry, outperforming 79.59% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that PRIM is not too dependend on debt financing.
PRIM has a Debt to Equity ratio of 0.38. This is in the better half of the industry: PRIM outperforms 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.97
WACC10.43%
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.
The Current ratio of PRIM (1.22) is comparable to the rest of the industry.
A Quick Ratio of 1.22 indicates that PRIM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.22, PRIM is in line with its industry, outperforming 51.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
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.
EPS 1Y (TTM)57.76%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%108.51%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%16.66%
3.2 Future
Based on estimates for the next years, PRIM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.81% on average per year.
The Revenue is expected to grow by 7.44% on average over the next years.
EPS Next Y18.52%
EPS Next 2Y15.61%
EPS Next 3Y14.46%
EPS Next 5Y13.81%
Revenue Next Year8.8%
Revenue Next 2Y7.17%
Revenue Next 3Y7.39%
Revenue Next 5Y7.44%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PRIM is valuated rather expensively with a Price/Earnings ratio of 20.52.
Based on the Price/Earnings ratio, PRIM is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, PRIM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.38, PRIM is valued on the expensive side.
PRIM's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRIM is cheaper than 83.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, PRIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 17.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRIM is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)1.08
EPS Next 2Y15.61%
EPS Next 3Y14.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, PRIM is not a good candidate for dividend investing.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.63. PRIM pays more dividend than 83.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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
6.77% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP6.77%
EPS Next 2Y15.61%
EPS Next 3Y14.46%
89.66
+2.72 (+3.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.89%
Inst Owner Change0.08%
Ins Owners0.92%
Ins Owner Change0.51%
Market Cap4.84B
Analysts85
Price Target94.96 (5.91%)
Short Float %4.58%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.43%
DP6.77%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.41%
Min EPS beat(2)46.53%
Max EPS beat(2)48.28%
EPS beat(4)4
Avg EPS beat(4)35.1%
Min EPS beat(4)17.07%
Max EPS beat(4)48.28%
EPS beat(8)8
Avg EPS beat(8)53.31%
EPS beat(12)10
Avg EPS beat(12)39.89%
EPS beat(16)11
Avg EPS beat(16)20.83%
Revenue beat(2)2
Avg Revenue beat(2)7.76%
Min Revenue beat(2)7.09%
Max Revenue beat(2)8.43%
Revenue beat(4)3
Avg Revenue beat(4)4.37%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)8.43%
Revenue beat(8)6
Avg Revenue beat(8)2.62%
Revenue beat(12)9
Avg Revenue beat(12)4.16%
Revenue beat(16)9
Avg Revenue beat(16)1.53%
PT rev (1m)7.13%
PT rev (3m)4.22%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-5.28%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 17.38 | ||
| P/S | 0.73 | ||
| P/FCF | 10.85 | ||
| P/OCF | 8.03 | ||
| P/B | 3.35 | ||
| P/tB | 12.56 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)4.37
EY4.87%
EPS(NY)5.16
Fwd EY5.75%
FCF(TTM)8.26
FCFY9.22%
OCF(TTM)11.17
OCFY12.45%
SpS122.26
BVpS26.77
TBVpS7.14
PEG (NY)1.11
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 14.26% | ||
| ROCE | 14.22% | ||
| ROIC | 10.1% | ||
| ROICexc | 11.8% | ||
| ROICexgc | 24.04% | ||
| OM | 5.24% | ||
| PM (TTM) | 3.12% | ||
| GM | 11.22% | ||
| FCFM | 6.76% |
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 Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 169.72% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 5.6 | ||
| Cash Conversion | 137.47% | ||
| Profit Quality | 216.43% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.35 |
F-Score7
WACC10.43%
ROIC/WACC0.97
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)57.76%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%108.51%
EPS Next Y18.52%
EPS Next 2Y15.61%
EPS Next 3Y14.46%
EPS Next 5Y13.81%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%16.66%
Revenue Next Year8.8%
Revenue Next 2Y7.17%
Revenue Next 3Y7.39%
Revenue Next 5Y7.44%
EBIT growth 1Y22.87%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year49.12%
EBIT Next 3Y21.46%
EBIT Next 5Y19.88%
FCF growth 1Y491.64%
FCF growth 3YN/A
FCF growth 5Y74.64%
OCF growth 1Y1663.34%
OCF growth 3Y85.41%
OCF growth 5Y33.92%