PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
NYSE:PRIM - New York Stock Exchange, Inc. - US74164F1030 - Common Stock - Currency: USD
PRIM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Construction & Engineering industry. PRIM has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRIM. This makes PRIM very considerable 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.
PRIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PRIM (4.31%) is better than 64.00% of its industry peers.
With a decent Return On Equity value of 12.83%, PRIM is doing good in the industry, outperforming 68.00% of the companies in the same industry.
PRIM's Return On Invested Capital of 8.99% is fine compared to the rest of the industry. PRIM outperforms 72.00% of its industry peers.
PRIM had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 12.17%.
The last Return On Invested Capital (8.99%) for PRIM is above the 3 year average (7.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 12.83% | ||
| ROIC | 8.99% |
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 (2.84%) is comparable to the rest of the industry.
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 5.02%, PRIM is in line with its industry, outperforming 54.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PRIM has grown nicely.
PRIM has a worse Gross Margin (11.05%) than 68.00% 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 | 5.02% | ||
| PM (TTM) | 2.84% | ||
| GM | 11.05% |
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.
Compared to 1 year ago, PRIM has more shares outstanding
Compared to 5 years ago, PRIM has more shares outstanding
The debt/assets ratio for PRIM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.00 indicates that PRIM is not in any danger for bankruptcy at the moment.
PRIM has a better Altman-Z score (3.00) than 62.00% of its industry peers.
The Debt to FCF ratio of PRIM is 1.92, which is an excellent value as it means it would take PRIM, only 1.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PRIM (1.92) is better than 74.00% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that PRIM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, PRIM perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3 |
ROIC/WACC1.02
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM's Current ratio of 1.29 is in line compared to the rest of the industry. PRIM outperforms 46.00% of its industry peers.
PRIM has a Quick Ratio of 1.29. This is a normal value and indicates that PRIM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.29, PRIM perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.38% over the past year.
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 11.40% in the past year. This is quite good.
The Revenue has been growing by 15.43% on average over the past years. This is quite good.
EPS 1Y (TTM)66.38%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%63.77%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%14.9%
3.2 Future
The Earnings Per Share is expected to grow by 13.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.16% on average over the next years.
EPS Next Y14.01%
EPS Next 2Y13.98%
EPS Next 3Y13.34%
EPS Next 5Y13.68%
Revenue Next Year7.14%
Revenue Next 2Y6.24%
Revenue Next 3Y6.55%
Revenue Next 5Y7.16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 15.54, the valuation of PRIM can be described as correct.
Based on the Price/Earnings ratio, PRIM is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
PRIM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.63, the valuation of PRIM can be described as correct.
PRIM's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRIM is cheaper than 84.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, PRIM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
92.00% of the companies in the same industry are more expensive than PRIM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PRIM may justify a higher PE ratio.
PRIM's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)0.82
EPS Next 2Y13.98%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, PRIM is not a good candidate for dividend investing.
In the last 3 months the price of PRIM has falen by -21.88%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.01, PRIM pays a better dividend. On top of this PRIM pays more dividend than 84.00% of the companies listed 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 | 0.54% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.43%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
7.11% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP7.11%
EPS Next 2Y13.98%
EPS Next 3Y13.34%
59.97
-1.32 (-2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change0.17%
Ins Owners1.11%
Ins Owner Change0.12%
Market Cap3.23B
Analysts85
Price Target85.58 (42.7%)
Short Float %5.18%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.43%
DP7.11%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.67%
Min EPS beat(2)17.07%
Max EPS beat(2)48.28%
EPS beat(4)4
Avg EPS beat(4)83.8%
Min EPS beat(4)17.07%
Max EPS beat(4)241.32%
EPS beat(8)8
Avg EPS beat(8)62.05%
EPS beat(12)9
Avg EPS beat(12)24.87%
EPS beat(16)11
Avg EPS beat(16)34.21%
Revenue beat(2)2
Avg Revenue beat(2)4.63%
Min Revenue beat(2)2.17%
Max Revenue beat(2)7.09%
Revenue beat(4)3
Avg Revenue beat(4)2.35%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)7.09%
Revenue beat(8)6
Avg Revenue beat(8)3.52%
Revenue beat(12)8
Avg Revenue beat(12)3.12%
Revenue beat(16)9
Avg Revenue beat(16)1.31%
PT rev (1m)-7.93%
PT rev (3m)-3.56%
EPS NQ rev (1m)5.95%
EPS NQ rev (3m)20.55%
EPS NY rev (1m)0.1%
EPS NY rev (3m)8.21%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 13.63 | ||
| P/S | 0.51 | ||
| P/FCF | 8.47 | ||
| P/OCF | 6.36 | ||
| P/B | 2.29 | ||
| P/tB | 9.38 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)3.86
EY6.44%
EPS(NY)4.4
Fwd EY7.34%
FCF(TTM)7.08
FCFY11.81%
OCF(TTM)9.43
OCFY15.72%
SpS118.08
BVpS26.14
TBVpS6.39
PEG (NY)1.11
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 12.83% | ||
| ROCE | 12.67% | ||
| ROIC | 8.99% | ||
| ROICexc | 10.97% | ||
| ROICexgc | 22.6% | ||
| OM | 5.02% | ||
| PM (TTM) | 2.84% | ||
| GM | 11.05% | ||
| FCFM | 6% |
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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 132.49% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 122.36% | ||
| Profit Quality | 211.05% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3 |
F-Score7
WACC8.85%
ROIC/WACC1.02
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)66.38%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%63.77%
EPS Next Y14.01%
EPS Next 2Y13.98%
EPS Next 3Y13.34%
EPS Next 5Y13.68%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%14.9%
Revenue Next Year7.14%
Revenue Next 2Y6.24%
Revenue Next 3Y6.55%
Revenue Next 5Y7.16%
EBIT growth 1Y23.63%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year47.25%
EBIT Next 3Y21.66%
EBIT Next 5Y19.61%
FCF growth 1Y299.55%
FCF growth 3YN/A
FCF growth 5Y74.64%
OCF growth 1Y156.01%
OCF growth 3Y85.41%
OCF growth 5Y33.92%