PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRIM - US74164F1030 - Common Stock
152.47 USD
+3.34 (+2.24%)
152.47 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PRIM. PRIM was compared to 55 industry peers in the Construction & Engineering industry. PRIM has an average financial health and profitability rating. PRIM has a decent growth rate and is not valued too expensively.
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
- The Return On Assets of PRIM (5.96%) is better than 65.45% of its industry peers.
- With a decent Return On Equity value of 17.03%, PRIM is doing good in the industry, outperforming 67.27% of the companies in the same industry.
- PRIM has a Return On Invested Capital of 12.01%. This is in the better half of the industry: PRIM outperforms 72.73% of its industry peers.
- PRIM had an Average Return On Invested Capital over the past 3 years of 7.18%. This is significantly below the industry average of 15.97%.
- The 3 year average ROIC (7.18%) for PRIM is below the current ROIC(12.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 17.03% | ||
| ROIC | 12.01% |
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 Profit Margin (3.72%) which is in line with its industry peers.
- PRIM's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 5.69%, PRIM perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
- PRIM's Operating Margin has improved in the last couple of years.
- PRIM has a worse Gross Margin (11.03%) than 69.09% of its industry peers.
- PRIM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | 3.72% | ||
| GM | 11.03% |
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.
- Compared to 1 year ago, PRIM has more shares outstanding
- 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 4.02 indicates that PRIM is not in any danger for bankruptcy at the moment.
- PRIM has a better Altman-Z score (4.02) than 67.27% of its industry peers.
- The Debt to FCF ratio of PRIM is 0.99, which is an excellent value as it means it would take PRIM, only 0.99 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.99, PRIM belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- A Debt/Equity ratio of 0.26 indicates that PRIM is not too dependend on debt financing.
- PRIM has a better Debt to Equity ratio (0.26) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.15
WACC10.41%
2.3 Liquidity
- PRIM has a Current Ratio of 1.20. 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 Current ratio, with a value of 1.20, PRIM is in line with its industry, outperforming 43.64% of the companies in the same industry.
- A Quick Ratio of 1.20 indicates that PRIM should not have too much problems paying its short term obligations.
- PRIM has a Quick ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 65.79% 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.
- The Revenue has grown by 21.45% in the past year. This is a very strong growth!
- 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)65.79%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%54.1%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%32.1%
3.2 Future
- PRIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.02% yearly.
- The Revenue is expected to grow by 7.99% on average over the next years.
EPS Next Y46.27%
EPS Next 2Y24.5%
EPS Next 3Y21.95%
EPS Next 5Y13.02%
Revenue Next Year20.6%
Revenue Next 2Y13.42%
Revenue Next 3Y11.68%
Revenue Next 5Y7.99%
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 quite expensively with a Price/Earnings ratio of 26.89.
- Based on the Price/Earnings ratio, PRIM is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of PRIM to the average of the S&P500 Index (28.39), we can say PRIM is valued inline with the index average.
- The Price/Forward Earnings ratio is 25.48, which means the current valuation is very expensive for PRIM.
- Based on the Price/Forward Earnings ratio, PRIM is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. PRIM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 25.48 |
4.2 Price Multiples
- 70.91% of the companies in the same industry are more expensive than PRIM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PRIM is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 15.76 |
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.
- PRIM's earnings are expected to grow with 21.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)1.42
EPS Next 2Y24.5%
EPS Next 3Y21.95%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.21%, PRIM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.44, PRIM pays a better dividend. On top of this PRIM pays more dividend than 81.82% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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
- 5.83% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP5.83%
EPS Next 2Y24.5%
EPS Next 3Y21.95%
PRIMORIS SERVICES CORP / PRIM FAQ
Can you provide the ChartMill fundamental rating for PRIMORIS SERVICES CORP?
ChartMill assigns a fundamental rating of 6 / 10 to PRIM.
What is the valuation status for PRIM stock?
ChartMill assigns a valuation rating of 6 / 10 to PRIMORIS SERVICES CORP (PRIM). This can be considered as Fairly Valued.
What is the profitability of PRIM stock?
PRIMORIS SERVICES CORP (PRIM) has a profitability rating of 6 / 10.
What is the expected EPS growth for PRIMORIS SERVICES CORP (PRIM) stock?
The Earnings per Share (EPS) of PRIMORIS SERVICES CORP (PRIM) is expected to grow by 46.27% in the next year.
Is the dividend of PRIMORIS SERVICES CORP sustainable?
The dividend rating of PRIMORIS SERVICES CORP (PRIM) is 5 / 10 and the dividend payout ratio is 5.83%.