PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - NYSE:PRIM - US74164F1030 - Common Stock
128.82 USD
+1.97 (+1.55%)
127.85 USD
-0.97 (-0.75%)
PRIM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Construction & Engineering industry. PRIM has only an average score on both its financial health and profitability. PRIM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PRIM was profitable.
PRIM had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.31%, PRIM is in the better half of the industry, outperforming 65.38% 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 71.15% 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 73.08% 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 17.22%.
The last Return On Invested Capital (10.91%) for PRIM is above the 3 year average (7.18%), which is a sign of increasing profitability.
| 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
The Profit Margin of PRIM (3.48%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PRIM has remained more or less at the same level.
Looking at the Operating Margin, with a value of 5.58%, PRIM is in line with its industry, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of PRIM has grown nicely.
PRIM has a Gross Margin of 11.34%. This is in the lower half of the industry: PRIM underperforms 65.38% 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 just above the Cost of Capital (WACC), so PRIM is still creating some value.
Compared to 1 year ago, PRIM has more shares outstanding
The number of shares outstanding for PRIM has been increased compared to 5 years ago.
The debt/assets ratio for PRIM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that PRIM is not in any danger for bankruptcy at the moment.
The Altman-Z score of PRIM (3.68) is better than 65.38% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.21, PRIM is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
PRIM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
PRIM has a Debt to Equity ratio of 0.34. This is in the better half of the industry: PRIM outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.09
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.22 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM has a Current ratio (1.22) which is comparable to the rest of the industry.
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 51.92% 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.
PRIM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.96% yearly.
PRIM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.08%.
The Revenue has been growing by 15.43% on average over the past years. This is quite good.
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
Based on estimates for the next years, PRIM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.61% on average per year.
Based on estimates for the next years, PRIM will show a quite strong growth in Revenue. The Revenue will grow by 9.60% on average per year.
EPS Next Y31.27%
EPS Next 2Y20.44%
EPS Next 3Y18.07%
EPS Next 5Y15.61%
Revenue Next Year13.5%
Revenue Next 2Y11.2%
Revenue Next 3Y10.28%
Revenue Next 5Y9.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 25.71, the valuation of PRIM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PRIM indicates a somewhat cheap valuation: PRIM is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PRIM to the average of the S&P500 Index (27.38), we can say PRIM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.01, the valuation of PRIM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PRIM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, PRIM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 23.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRIM is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | 14.84 |
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.
PRIM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PRIM's earnings are expected to grow with 18.07% in the coming years.
PEG (NY)0.82
PEG (5Y)1.36
EPS Next 2Y20.44%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.26%, which is pretty low.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.57. PRIM pays more dividend than 82.69% 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 2.38.
| 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 6.25% of its income as dividend. This is a sustainable payout ratio.
DP6.25%
EPS Next 2Y20.44%
EPS Next 3Y18.07%
128.82
+1.97 (+1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners99.53%
Inst Owner Change-3.64%
Ins Owners0.9%
Ins Owner Change-2.77%
Market Cap6.96B
Analysts86.67
Price Target124.21 (-3.58%)
Short Float %3.95%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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)26.69%
PT rev (3m)40.14%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)10.76%
EPS NY rev (3m)10.75%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)4.36%
Revenue NY rev (1m)4.08%
Revenue NY rev (3m)3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 23.01 | ||
| P/S | 1 | ||
| P/FCF | 13.92 | ||
| P/OCF | 10.46 | ||
| P/B | 4.53 | ||
| P/tB | 14.52 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)5.01
EY3.89%
EPS(NY)5.6
Fwd EY4.35%
FCF(TTM)9.25
FCFY7.18%
OCF(TTM)12.32
OCFY9.56%
SpS128.3
BVpS28.41
TBVpS8.87
PEG (NY)0.82
PEG (5Y)1.36
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 | 3.68 |
F-Score7
WACC9.97%
ROIC/WACC1.09
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 Y31.27%
EPS Next 2Y20.44%
EPS Next 3Y18.07%
EPS Next 5Y15.61%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%20.91%
Revenue Next Year13.5%
Revenue Next 2Y11.2%
Revenue Next 3Y10.28%
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%