PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRIM - US74164F1030 - Common Stock
124.14 USD
-0.19 (-0.15%)
124.13 USD
-0.01 (-0.01%)
PRIM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 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. PRIM has a correct valuation and a medium 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.
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
Looking at the Return On Assets, with a value of 5.96%, PRIM is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
PRIM has a Return On Equity of 17.03%. This is in the better half of the industry: PRIM outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 12.01%, PRIM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
PRIM had an Average Return On Invested Capital over the past 3 years of 7.18%. This is significantly below the industry average of 16.29%.
The last Return On Invested Capital (12.01%) for PRIM is above the 3 year average (7.18%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 3.72%, PRIM perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of PRIM has remained more or less at the same level.
PRIM has a Operating Margin (5.69%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PRIM has grown nicely.
PRIM's Gross Margin of 11.03% is on the low side compared to the rest of the industry. PRIM is outperformed by 70.37% 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 | 5.69% | ||
| 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.
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
Compared to 1 year ago, PRIM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.75 indicates that PRIM is not in any danger for bankruptcy at the moment.
The Altman-Z score of PRIM (3.75) is better than 62.96% of its industry peers.
PRIM has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of 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 | 3.75 |
ROIC/WACC1.14
WACC10.49%
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.
A Quick Ratio of 1.20 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM has a Quick ratio of 1.20. This is comparable to the rest of the industry: PRIM outperforms 48.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.79% over the past year.
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.
The Revenue has grown by 21.45% in the past year. This is a very strong growth!
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)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.
Based on estimates for the next years, PRIM will show a small growth in Revenue. The Revenue will grow by 7.99% on average per year.
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
Based on the Price/Earnings ratio of 21.89, the valuation of PRIM can be described as rather expensive.
81.48% of the companies in the same industry are more expensive than PRIM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PRIM to the average of the S&P500 Index (26.51), we can say PRIM is valued inline with the index average.
A Price/Forward Earnings ratio of 20.62 indicates a rather expensive valuation of PRIM.
Based on the Price/Forward Earnings ratio, PRIM is valued a bit cheaper than 79.63% of the companies in the same industry.
PRIM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 20.62 |
4.2 Price Multiples
79.63% of the companies in the same industry are more expensive than PRIM, based on the Enterprise Value to EBITDA ratio.
87.04% 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 | 13.71 | ||
| EV/EBITDA | 13.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 22.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)1.15
EPS Next 2Y24.89%
EPS Next 3Y22.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.25%, PRIM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.41, PRIM pays a better dividend. On top of this PRIM pays more dividend than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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 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
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%
124.14
-0.19 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners100.46%
Inst Owner Change-2.23%
Ins Owners0.86%
Ins Owner Change-0.75%
Market Cap6.71B
Revenue(TTM)7.46B
Net Income(TTM)277.14M
Analysts78
Price Target153.39 (23.56%)
Short Float %4.32%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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)-0.04%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)8.4%
EPS NY rev (3m)11.43%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)4.71%
Revenue NY rev (1m)5.76%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 20.62 | ||
| P/S | 0.9 | ||
| P/FCF | 13.71 | ||
| P/OCF | 10.72 | ||
| P/B | 4.12 | ||
| P/tB | 11.63 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)5.67
EY4.57%
EPS(NY)6.02
Fwd EY4.85%
FCF(TTM)9.06
FCFY7.3%
OCF(TTM)11.58
OCFY9.33%
SpS138.05
BVpS30.13
TBVpS10.67
PEG (NY)0.47
PEG (5Y)1.15
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 | 3.75 |
F-Score7
WACC10.49%
ROIC/WACC1.14
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%.