PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRIM - US74164F1030 - Common Stock
128.93 USD
-2.72 (-2.07%)
128.8 USD
-0.13 (-0.1%)
PRIM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Construction & Engineering industry. PRIM has only an average score on both its financial health and profitability. PRIM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRIM was profitable.
PRIM had a positive operating cash flow in the past year.
Each year in the past 5 years PRIM has been profitable.
Each year in the past 5 years PRIM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.96%, PRIM is doing good in the industry, outperforming 64.81% of the companies in the same industry.
The Return On Equity of PRIM (17.03%) is better than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.01%, PRIM is in the better half of the industry, outperforming 72.22% 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 15.99%.
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's Profit Margin of 3.72% is in line compared to the rest of the industry. PRIM outperforms 55.56% of its industry peers.
In the last couple of years the Profit Margin of PRIM has remained more or less at the same level.
PRIM's Operating Margin of 5.69% is in line compared to the rest of the industry. PRIM outperforms 51.85% of its industry peers.
PRIM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.03%, PRIM is doing worse than 70.37% of the companies in the same industry.
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 | 5.69% | ||
| 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.
PRIM has more shares outstanding than it did 1 year ago.
PRIM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRIM has an improved debt to assets ratio.
2.2 Solvency
PRIM has an Altman-Z score of 3.80. This indicates that PRIM is financially healthy and has little risk of bankruptcy at the moment.
PRIM's Altman-Z score of 3.80 is fine compared to the rest of the industry. PRIM outperforms 61.11% 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.
PRIM has a better Debt to FCF ratio (0.99) than 81.48% of its industry peers.
PRIM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, PRIM is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.16
WACC10.39%
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.
The Current ratio of PRIM (1.20) is comparable to the rest of the industry.
PRIM has a Quick 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.
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
PRIM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.79%, which is quite impressive.
The Earnings Per Share has been growing by 18.96% on average over the past years. This is quite good.
PRIM shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.45%.
The Revenue has been growing by 15.43% on average over the past years. This is quite good.
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
Based on estimates for the next years, PRIM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.02% on average per year.
The Revenue is expected to grow by 7.99% on average over the next years.
EPS Next Y46.27%
EPS Next 2Y24.89%
EPS Next 3Y22.15%
EPS Next 5Y13.02%
Revenue Next Year20.63%
Revenue Next 2Y13.6%
Revenue Next 3Y11.78%
Revenue Next 5Y7.99%
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
The Price/Earnings ratio is 22.74, which indicates a rather expensive current valuation of PRIM.
79.63% of the companies in the same industry are more expensive than PRIM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.17. PRIM is around the same levels.
A Price/Forward Earnings ratio of 21.42 indicates a rather expensive valuation of PRIM.
PRIM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRIM is cheaper than 79.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. PRIM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRIM indicates a somewhat cheap valuation: PRIM is cheaper than 79.63% of the companies listed in the same industry.
PRIM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRIM is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 13.64 |
4.3 Compensation for Growth
PRIM's 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 22.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)1.2
EPS Next 2Y24.89%
EPS Next 3Y22.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.26%, 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 0.42. PRIM pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.26, PRIM pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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 5.83% of its income as dividend. This is a sustainable payout ratio.
DP5.83%
EPS Next 2Y24.89%
EPS Next 3Y22.15%
128.93
-2.72 (-2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change-0.75%
Market Cap6.97B
Revenue(TTM)7.46B
Net Income(TTM)277.14M
Analysts78
Price Target153.39 (18.97%)
Short Float %4.32%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.43%
DP5.83%
Div Incr Years1
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.95%
Min EPS beat(2)33.49%
Max EPS beat(2)52.4%
EPS beat(4)4
Avg EPS beat(4)45.18%
Min EPS beat(4)33.49%
Max EPS beat(4)52.4%
EPS beat(8)8
Avg EPS beat(8)58.61%
EPS beat(12)12
Avg EPS beat(12)52.75%
EPS beat(16)12
Avg EPS beat(16)26.6%
Revenue beat(2)2
Avg Revenue beat(2)12.84%
Min Revenue beat(2)9.74%
Max Revenue beat(2)15.94%
Revenue beat(4)4
Avg Revenue beat(4)10.3%
Min Revenue beat(4)7.09%
Max Revenue beat(4)15.94%
Revenue beat(8)6
Avg Revenue beat(8)4.95%
Revenue beat(12)9
Avg Revenue beat(12)5.14%
Revenue beat(16)11
Avg Revenue beat(16)4.29%
PT rev (1m)-2.72%
PT rev (3m)23.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0%
EPS NY rev (3m)11.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.42 | ||
| P/S | 0.93 | ||
| P/FCF | 14.23 | ||
| P/OCF | 11.13 | ||
| P/B | 4.28 | ||
| P/tB | 12.08 | ||
| EV/EBITDA | 13.64 |
EPS(TTM)5.67
EY4.4%
EPS(NY)6.02
Fwd EY4.67%
FCF(TTM)9.06
FCFY7.03%
OCF(TTM)11.58
OCFY8.98%
SpS138.05
BVpS30.13
TBVpS10.67
PEG (NY)0.49
PEG (5Y)1.2
Graham Number62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 17.03% | ||
| ROCE | 16.91% | ||
| ROIC | 12.01% | ||
| ROICexc | 14.5% | ||
| ROICexgc | 29.34% | ||
| OM | 5.69% | ||
| PM (TTM) | 3.72% | ||
| GM | 11.03% | ||
| FCFM | 6.56% |
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%
ROICexgc growth 3Y12.35%
ROICexgc 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 Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 151.04% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 13.36 | ||
| Cash Conversion | 121.58% | ||
| Profit Quality | 176.59% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.8 |
F-Score7
WACC10.39%
ROIC/WACC1.16
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)65.79%
EPS 3Y21.73%
EPS 5Y18.96%
EPS Q2Q%54.1%
EPS Next Y46.27%
EPS Next 2Y24.89%
EPS Next 3Y22.15%
EPS Next 5Y13.02%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%32.1%
Revenue Next Year20.63%
Revenue Next 2Y13.6%
Revenue Next 3Y11.78%
Revenue Next 5Y7.99%
EBIT growth 1Y37.94%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year73.41%
EBIT Next 3Y29.09%
EBIT Next 5Y15.9%
FCF growth 1Y537.74%
FCF growth 3YN/A
FCF growth 5Y74.64%
OCF growth 1Y251.1%
OCF growth 3Y85.41%
OCF growth 5Y33.92%
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%.