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 49 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 would make PRIM suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year PRIM was profitable.
PRIM had a positive operating cash flow in the past year.
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
PRIM's Return On Assets of 4.89% is fine compared to the rest of the industry. PRIM outperforms 65.31% of its industry peers.
The Return On Equity of PRIM (14.26%) is better than 65.31% of its industry peers.
PRIM has a better Return On Invested Capital (10.10%) than 69.39% 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 16.67%.
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
With a decent Profit Margin value of 3.12%, PRIM is doing good in the industry, outperforming 61.22% of the companies in the same industry.
PRIM's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 5.24%, PRIM is in line with its industry, outperforming 53.06% of the companies in the same industry.
PRIM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.22%, PRIM is doing worse than 67.35% of the companies in the same industry.
PRIM's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, PRIM has more shares outstanding
Compared to 5 years ago, PRIM has more shares outstanding
PRIM has a better debt/assets ratio than last year.
2.2 Solvency
PRIM has an Altman-Z score of 3.38. This indicates that PRIM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.38, PRIM is in the better half of the industry, outperforming 61.22% 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.
PRIM has a better Debt to FCF ratio (1.37) than 79.59% of its industry peers.
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 | 3.38 |
ROIC/WACC0.96
WACC10.48%
2.3 Liquidity
A Current Ratio of 1.22 indicates that PRIM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, PRIM is in line with its industry, outperforming 46.94% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM has a Quick ratio (1.22) which is in line with its industry peers.
| 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.
PRIM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.45%.
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
The Earnings Per Share is expected to grow by 13.81% on average over the next years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 20.72 indicates a rather expensive valuation of PRIM.
Based on the Price/Earnings ratio, PRIM is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
PRIM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 17.55, the valuation of PRIM can be described as rather expensive.
83.67% of the companies in the same industry are more expensive than PRIM, based on the Price/Forward Earnings ratio.
PRIM is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
PRIM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRIM is cheaper than 83.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 91.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 11.63 |
4.3 Compensation for Growth
PRIM's 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.
A more expensive valuation may be justified as PRIM's earnings are expected to grow with 14.46% in the coming years.
PEG (NY)1.12
PEG (5Y)1.09
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.
With a Dividend Yield of 0.37, PRIM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
The dividend of PRIM decreases each year by -0.43%.
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)-0.43%
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%
NYSE:PRIM (7/24/2025, 11:24:04 AM)
90.525
+0.87 (+0.96%)
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 Cap4.89B
Analysts85
Price Target94.96 (4.9%)
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 | 20.72 | ||
| Fwd PE | 17.55 | ||
| P/S | 0.74 | ||
| P/FCF | 10.95 | ||
| P/OCF | 8.11 | ||
| P/B | 3.38 | ||
| P/tB | 12.68 | ||
| EV/EBITDA | 11.63 |
EPS(TTM)4.37
EY4.83%
EPS(NY)5.16
Fwd EY5.7%
FCF(TTM)8.26
FCFY9.13%
OCF(TTM)11.17
OCFY12.33%
SpS122.26
BVpS26.77
TBVpS7.14
PEG (NY)1.12
PEG (5Y)1.09
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 | 3.38 |
F-Score7
WACC10.48%
ROIC/WACC0.96
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%