PRIMORIS SERVICES CORP (PRIM)
US74164F1030 - Common Stock
We assign a fundamental rating of 5 out of 10 to PRIM. PRIM was compared to 43 industry peers in the Construction & Engineering industry. PRIM has an average financial health and profitability rating. PRIM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRIM was profitable.
In the past year PRIM had a positive cash flow from operations.
Each year in the past 5 years PRIM has been profitable.
PRIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRIM has a Return On Assets of 3.64%. This is comparable to the rest of the industry: PRIM outperforms 59.52% of its industry peers.
PRIM has a Return On Equity of 11.51%. This is in the better half of the industry: PRIM outperforms 66.67% of its industry peers.
PRIM has a Return On Invested Capital of 8.69%. This is in the better half of the industry: PRIM outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRIM is in line with the industry average of 8.29%.
The last Return On Invested Capital (8.69%) for PRIM is above the 3 year average (7.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 11.51% | ||
| ROIC | 8.69% |
ROA(3y)3.86%
ROA(5y)4.28%
ROE(3y)11.29%
ROE(5y)12.33%
ROIC(3y)7.24%
ROIC(5y)8.37%
1.3 Margins
With a Profit Margin value of 2.45%, PRIM perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
PRIM's Profit Margin has declined in the last couple of years.
PRIM has a Operating Margin of 4.80%. This is comparable to the rest of the industry: PRIM outperforms 47.62% of its industry peers.
In the last couple of years the Operating Margin of PRIM has declined.
Looking at the Gross Margin, with a value of 10.58%, PRIM is doing worse than 66.67% of the companies in the same industry.
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 | 4.8% | ||
| PM (TTM) | 2.45% | ||
| GM | 10.58% |
OM growth 3Y-1.87%
OM growth 5Y-1.54%
PM growth 3Y-9.8%
PM growth 5Y-3.49%
GM growth 3Y-1.03%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
PRIM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRIM has been increased compared to 1 year ago.
Compared to 5 years ago, PRIM has more shares outstanding
Compared to 1 year ago, PRIM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.82 indicates that PRIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.82, PRIM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Debt to FCF ratio of PRIM is 5.12, which is a neutral value as it means it would take PRIM, 5.12 years of fcf income to pay off all of its debts.
PRIM has a better Debt to FCF ratio (5.12) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that PRIM is somewhat dependend on debt financing.
PRIM has a Debt to Equity ratio (0.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.12 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.89
WACC9.73%
2.3 Liquidity
PRIM has a Current Ratio of 1.38. 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 (1.38) which is comparable to the rest of the industry.
PRIM has a Quick Ratio of 1.38. This is a normal value and indicates that PRIM is financially healthy and should not expect problems in meeting its short term obligations.
PRIM's Quick ratio of 1.38 is fine compared to the rest of the industry. PRIM outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.88% over the past year.
Measured over the past 5 years, PRIM shows a small growth in Earnings Per Share. The EPS has been growing by 7.99% on average per year.
Looking at the last year, PRIM shows a quite strong growth in Revenue. The Revenue has grown by 19.99% in the last year.
The Revenue has been growing by 14.22% on average over the past years. This is quite good.
EPS 1Y (TTM)48.88%
EPS 3Y0.73%
EPS 5Y7.99%
EPS growth Q2Q1650%
Revenue 1Y (TTM)19.99%
Revenue growth 3Y17.85%
Revenue growth 5Y14.22%
Revenue growth Q2Q12.4%
3.2 Future
The Earnings Per Share is expected to grow by 21.45% on average over the next years. This is a very strong growth
Based on estimates for the next years, PRIM will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y21.49%
EPS Next 2Y20.01%
EPS Next 3Y21.45%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y6.26%
Revenue Next 3Y5.35%
Revenue Next 5YN/A
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 accelerating.
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
With a Price/Earnings ratio of 19.35, PRIM is valued on the expensive side.
85.71% of the companies in the same industry are more expensive than PRIM, based on the Price/Earnings ratio.
PRIM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.91.
The Price/Forward Earnings ratio is 15.34, which indicates a correct valuation of PRIM.
Based on the Price/Forward Earnings ratio, PRIM is valued a bit cheaper than 78.57% of the companies in the same industry.
PRIM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
92.86% 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 somewhat cheap valuation: PRIM is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 8.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRIM's earnings are expected to grow with 21.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)2.42
EPS Next 2Y20.01%
EPS Next 3Y21.45%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.49%, which is pretty low.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 0.78. PRIM pays more dividend than 85.71% 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 | 0.49% |
5.2 History
The dividend of PRIM decreases each year by -0.07%.
PRIM has been paying a dividend for at least 10 years, so it has 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)-0.07%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
8.90% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP8.9%
EPS Next 2Y20.01%
EPS Next 3Y21.45%
PRIMORIS SERVICES CORP
NYSE:PRIM (5/15/2024, 6:02:11 PM)
After market: 51.27 0 (0%)51.27
+1.71 (+3.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 15.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.9
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 11.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.8% | ||
| PM (TTM) | 2.45% | ||
| GM | 10.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)48.88%
EPS 3Y0.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.99%
Revenue growth 3Y17.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y