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. Both the profitability and the financial health of PRIM get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRIM. With these ratings, PRIM could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year PRIM was profitable.
In the past year PRIM had a positive cash flow from operations.
PRIM had positive earnings in each of the past 5 years.
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 4.89%, PRIM is doing good in the industry, outperforming 65.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.26%, PRIM is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
PRIM's Return On Invested Capital of 10.10% is fine compared to the rest of the industry. PRIM outperforms 69.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRIM is significantly below the industry average of 16.67%.
The last Return On Invested Capital (10.10%) for PRIM is above the 3 year average (7.18%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 3.12%, PRIM is in the better half of 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.
PRIM's Operating Margin of 5.24% is in line compared to the rest of the industry. PRIM outperforms 53.06% of its industry peers.
PRIM's Operating Margin has improved in the last couple of years.
PRIM has a Gross Margin of 11.22%. This is in the lower half of the industry: PRIM underperforms 67.35% of its industry peers.
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
PRIM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRIM has been increased compared to 1 year ago.
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 3.42 indicates that PRIM is not in any danger for bankruptcy at the moment.
PRIM has a better Altman-Z score (3.42) than 61.22% of its industry peers.
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's Debt to FCF ratio of 1.37 is fine compared to the rest of the industry. PRIM outperforms 79.59% of its industry peers.
PRIM has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.42 |
ROIC/WACC0.95
WACC10.59%
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.
The Current ratio of PRIM (1.22) is comparable to the rest of the industry.
A Quick Ratio of 1.22 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM's Quick ratio of 1.22 is in line compared to the rest of the industry. PRIM outperforms 51.02% 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 57.76%, which is quite impressive.
PRIM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.96% yearly.
Looking at the last year, PRIM shows a quite strong growth in Revenue. The Revenue has grown by 12.45% in the last year.
The Revenue has been growing by 15.43% on average over the past years. This is quite good.
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.
Based on estimates for the next years, PRIM will show a small growth in Revenue. The Revenue will grow by 7.44% on average per year.
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.
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 rather expensively with a Price/Earnings ratio of 21.24.
Based on the Price/Earnings ratio, PRIM is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.04. PRIM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.99, PRIM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 81.63% of the companies listed in the same industry.
PRIM is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
91.84% 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 | 11.23 | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
The 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)1.15
PEG (5Y)1.12
EPS Next 2Y15.61%
EPS Next 3Y14.46%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.36%, which is pretty low.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.60. PRIM pays more dividend than 83.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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
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%
92.83
+2.9 (+3.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.89%
Inst Owner Change0.22%
Ins Owners0.92%
Ins Owner Change0.51%
Market Cap5.01B
Analysts85
Price Target94.96 (2.29%)
Short Float %4.58%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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)5.66%
PT rev (3m)10.97%
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)0.23%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 17.99 | ||
| P/S | 0.76 | ||
| P/FCF | 11.23 | ||
| P/OCF | 8.31 | ||
| P/B | 3.47 | ||
| P/tB | 13 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)4.37
EY4.71%
EPS(NY)5.16
Fwd EY5.56%
FCF(TTM)8.26
FCFY8.9%
OCF(TTM)11.17
OCFY12.03%
SpS122.26
BVpS26.77
TBVpS7.14
PEG (NY)1.15
PEG (5Y)1.12
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 | 3.42 |
F-Score7
WACC10.59%
ROIC/WACC0.95
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%