PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
NYSE:PRIM - US74164F1030 - Common Stock
114.42 USD
+2.72 (+2.44%)
114.42 USD
0 (0%)
Taking everything into account, PRIM scores 6 out of 10 in our fundamental rating. PRIM was compared to 49 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.
PRIM had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.31%, PRIM is doing good in the industry, outperforming 67.35% of the companies in the same industry.
PRIM's Return On Equity of 15.70% is fine compared to the rest of the industry. PRIM outperforms 71.43% of its industry peers.
PRIM has a Return On Invested Capital of 10.91%. This is in the better half of the industry: PRIM outperforms 75.51% 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 16.83%.
The 3 year average ROIC (7.18%) for PRIM is below the current ROIC(10.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 15.7% | ||
| ROIC | 10.91% |
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
Looking at the Profit Margin, with a value of 3.48%, PRIM is in line with its industry, outperforming 57.14% of the companies in the same industry.
PRIM's Profit Margin has been stable in the last couple of years.
PRIM has a Operating Margin (5.58%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PRIM has grown nicely.
PRIM's Gross Margin of 11.34% is on the low side compared to the rest of the industry. PRIM is outperformed by 65.31% 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 | 5.58% | ||
| PM (TTM) | 3.48% | ||
| GM | 11.34% |
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.
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
The debt/assets ratio for PRIM has been reduced compared to a year ago.
2.2 Solvency
PRIM has an Altman-Z score of 3.52. This indicates that PRIM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.52, PRIM is doing good in the industry, outperforming 67.35% of the companies in the same industry.
The Debt to FCF ratio of PRIM is 1.21, which is an excellent value as it means it would take PRIM, only 1.21 years of fcf income to pay off all of its debts.
PRIM's Debt to FCF ratio of 1.21 is amongst the best of the industry. PRIM outperforms 81.63% of its industry peers.
PRIM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.34, PRIM is doing good in the industry, outperforming 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.99
WACC11.01%
2.3 Liquidity
PRIM has a Current 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.
PRIM has a Current ratio of 1.22. This is comparable to the rest of the industry: PRIM outperforms 44.90% 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.
PRIM's Quick ratio of 1.22 is in line compared to the rest of the industry. PRIM outperforms 48.98% of 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 62.14%, 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 15.08% in the last year.
Measured over the past years, PRIM shows a quite strong growth in Revenue. The Revenue has been growing by 15.43% on average per year.
EPS 1Y (TTM)62.14%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%61.54%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%20.91%
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 15.61% yearly.
PRIM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.60% yearly.
EPS Next Y18.52%
EPS Next 2Y15.61%
EPS Next 3Y14.46%
EPS Next 5Y15.61%
Revenue Next Year9.05%
Revenue Next 2Y7.32%
Revenue Next 3Y7.48%
Revenue Next 5Y9.6%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
Based on the Price/Earnings ratio of 22.84, the valuation of PRIM can be described as rather expensive.
Based on the Price/Earnings ratio, PRIM is valued a bit cheaper than 75.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. PRIM is around the same levels.
With a Price/Forward Earnings ratio of 22.18, PRIM is valued on the expensive side.
PRIM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRIM is cheaper than 69.39% of the companies in the same industry.
PRIM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 22.18 |
4.2 Price Multiples
PRIM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRIM is cheaper than 79.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRIM is valued cheaper than 89.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.37 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
PRIM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PRIM has a very decent profitability rating, which may justify a higher PE ratio.
PRIM's earnings are expected to grow with 14.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)1.2
EPS Next 2Y15.61%
EPS Next 3Y14.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, 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 1.62. PRIM pays more dividend than 81.63% of the companies in the same industry.
With a Dividend Yield of 0.29, PRIM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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 6.25% of its income as dividend. This is a sustainable payout ratio.
DP6.25%
EPS Next 2Y15.61%
EPS Next 3Y14.46%
114.42
+2.72 (+2.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners99.53%
Inst Owner Change-3.58%
Ins Owners0.9%
Ins Owner Change0.07%
Market Cap6.18B
Analysts86.67
Price Target98.05 (-14.31%)
Short Float %4.18%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.43%
DP6.25%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.47%
Min EPS beat(2)46.53%
Max EPS beat(2)52.4%
EPS beat(4)4
Avg EPS beat(4)41.07%
Min EPS beat(4)17.07%
Max EPS beat(4)52.4%
EPS beat(8)8
Avg EPS beat(8)55.93%
EPS beat(12)11
Avg EPS beat(12)49.9%
EPS beat(16)12
Avg EPS beat(16)24.65%
Revenue beat(2)2
Avg Revenue beat(2)9.08%
Min Revenue beat(2)8.43%
Max Revenue beat(2)9.74%
Revenue beat(4)4
Avg Revenue beat(4)6.86%
Min Revenue beat(4)2.17%
Max Revenue beat(4)9.74%
Revenue beat(8)6
Avg Revenue beat(8)3.53%
Revenue beat(12)9
Avg Revenue beat(12)4.31%
Revenue beat(16)10
Avg Revenue beat(16)2.69%
PT rev (1m)9.1%
PT rev (3m)14.57%
EPS NQ rev (1m)3.31%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)5.43%
Revenue NQ rev (3m)5.37%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 22.18 | ||
| P/S | 0.89 | ||
| P/FCF | 12.37 | ||
| P/OCF | 9.29 | ||
| P/B | 4.03 | ||
| P/tB | 12.9 | ||
| EV/EBITDA | 13.12 |
EPS(TTM)5.01
EY4.38%
EPS(NY)5.16
Fwd EY4.51%
FCF(TTM)9.25
FCFY8.09%
OCF(TTM)12.32
OCFY10.77%
SpS128.3
BVpS28.41
TBVpS8.87
PEG (NY)1.23
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 15.7% | ||
| ROCE | 15.37% | ||
| ROIC | 10.91% | ||
| ROICexc | 12.92% | ||
| ROICexgc | 25.65% | ||
| OM | 5.58% | ||
| PM (TTM) | 3.48% | ||
| GM | 11.34% | ||
| FCFM | 7.21% |
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 Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 185.78% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 11.21 | ||
| Cash Conversion | 139.78% | ||
| Profit Quality | 207.38% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.52 |
F-Score7
WACC11.01%
ROIC/WACC0.99
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)62.14%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%61.54%
EPS Next Y18.52%
EPS Next 2Y15.61%
EPS Next 3Y14.46%
EPS Next 5Y15.61%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%20.91%
Revenue Next Year9.05%
Revenue Next 2Y7.32%
Revenue Next 3Y7.48%
Revenue Next 5Y9.6%
EBIT growth 1Y30.38%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year49.21%
EBIT Next 3Y22.67%
EBIT Next 5Y21.56%
FCF growth 1Y2134.86%
FCF growth 3YN/A
FCF growth 5Y74.64%
OCF growth 1Y610.62%
OCF growth 3Y85.41%
OCF growth 5Y33.92%