PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
NYSE:PRIM - New York Stock Exchange, Inc. - US74164F1030 - Common Stock - Currency: USD
Taking everything into account, PRIM scores 6 out of 10 in our fundamental rating. PRIM was compared to 52 industry peers in the Construction & Engineering industry. PRIM has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRIM. These ratings could make PRIM a good candidate for value investing.
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.
PRIM had positive earnings in each of the past 5 years.
PRIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PRIM (4.89%) is better than 67.31% of its industry peers.
Looking at the Return On Equity, with a value of 14.26%, PRIM is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.10%, PRIM is in the better half of the industry, outperforming 71.15% 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 16.61%.
The 3 year average ROIC (7.18%) for PRIM is below the current ROIC(10.10%), indicating increased profibility in the last year.
| 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
PRIM has a better Profit Margin (3.12%) than 63.46% of its industry peers.
PRIM's Profit Margin has been stable in the last couple of years.
The Operating Margin of PRIM (5.24%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PRIM has grown nicely.
With a Gross Margin value of 11.22%, PRIM is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
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
PRIM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 3.19 indicates that PRIM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, PRIM is in line with its industry, outperforming 57.69% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.37, 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 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PRIM (0.38) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.01
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.22 indicates that PRIM should not have too much problems paying 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.
PRIM has a Quick 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.
Looking at the Quick ratio, with a value of 1.22, PRIM is in line with its industry, outperforming 51.92% 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.
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 12.45% 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)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 Y18.53%
EPS Next 2Y15.39%
EPS Next 3Y13.91%
EPS Next 5Y13.81%
Revenue Next Year9.23%
Revenue Next 2Y7.15%
Revenue Next 3Y6.77%
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.
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
With a Price/Earnings ratio of 16.87, PRIM is valued correctly.
Based on the Price/Earnings ratio, PRIM is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.60. PRIM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of PRIM.
Based on the Price/Forward Earnings ratio, PRIM is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PRIM to the average of the S&P500 Index (22.39), we can say PRIM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 9.61 |
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.
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 13.91% in the coming years.
PEG (NY)0.91
PEG (5Y)0.89
EPS Next 2Y15.39%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, 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 1.78. PRIM pays more dividend than 84.62% of the companies in the same industry.
With a Dividend Yield of 0.43, PRIM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
PRIM pays out 6.77% of its income as dividend. This is a sustainable payout ratio.
DP6.77%
EPS Next 2Y15.39%
EPS Next 3Y13.91%
73.72
+0.51 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change7.07%
Ins Owners1.11%
Ins Owner Change0.8%
Market Cap3.98B
Analysts84.71
Price Target88.64 (20.24%)
Short Float %5.67%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)3.58%
PT rev (3m)-4.64%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)3.97%
EPS NY rev (3m)12.02%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 14.34 | ||
| P/S | 0.6 | ||
| P/FCF | 8.92 | ||
| P/OCF | 6.6 | ||
| P/B | 2.75 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)4.37
EY5.93%
EPS(NY)5.14
Fwd EY6.97%
FCF(TTM)8.26
FCFY11.21%
OCF(TTM)11.17
OCFY15.15%
SpS122.26
BVpS26.77
TBVpS7.14
PEG (NY)0.91
PEG (5Y)0.89
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 | 3.19 |
F-Score7
WACC9.99%
ROIC/WACC1.01
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 Y18.53%
EPS Next 2Y15.39%
EPS Next 3Y13.91%
EPS Next 5Y13.81%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%16.66%
Revenue Next Year9.23%
Revenue Next 2Y7.15%
Revenue Next 3Y6.77%
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%