PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - NYSE:PRIM - US74164F1030 - Common Stock
118.41 USD
+1.26 (+1.08%)
118.41 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PRIM. PRIM was compared to 55 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. An interesting combination arises when we look at growth and value: PRIM is growing strongly while it also seems undervalued. This makes PRIM very considerable for value and growth investing!
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.
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
The Return On Assets of PRIM (5.96%) is better than 65.45% of its industry peers.
The Return On Equity of PRIM (17.03%) is better than 69.09% of its industry peers.
PRIM has a better Return On Invested Capital (12.01%) than 74.55% 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 16.87%.
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 has a Profit Margin of 3.72%. This is comparable to the rest of the industry: PRIM outperforms 56.36% of its industry peers.
PRIM's Profit Margin has been stable in the last couple of years.
PRIM has a Operating Margin (5.69%) which is comparable to the rest of the industry.
PRIM's Operating Margin has improved in the last couple of years.
PRIM has a Gross Margin of 11.03%. This is in the lower half of the industry: PRIM underperforms 70.91% of its industry peers.
PRIM's Gross Margin has been stable in the last couple of years.
| 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
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
Compared to 5 years ago, PRIM has more shares outstanding
PRIM has a better debt/assets ratio than last year.
2.2 Solvency
PRIM has an Altman-Z score of 3.67. This indicates that PRIM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.67, PRIM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.99, PRIM belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
PRIM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PRIM (0.26) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.19
WACC10.11%
2.3 Liquidity
A Current Ratio of 1.20 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM has a Current ratio (1.20) which 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.
With a Quick ratio value of 1.20, PRIM perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
| 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.
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
PRIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.67% yearly.
PRIM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.21% yearly.
EPS Next Y34.94%
EPS Next 2Y23.64%
EPS Next 3Y21.88%
EPS Next 5Y12.67%
Revenue Next Year14.07%
Revenue Next 2Y11.3%
Revenue Next 3Y11.09%
Revenue Next 5Y9.21%
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
Based on the Price/Earnings ratio of 20.88, the valuation of PRIM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 83.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PRIM to the average of the S&P500 Index (25.51), we can say PRIM is valued inline with the index average.
A Price/Forward Earnings ratio of 20.07 indicates a rather expensive valuation of PRIM.
76.36% of the companies in the same industry are more expensive than PRIM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PRIM to the average of the S&P500 Index (34.98), we can say PRIM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 20.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued cheaper than 81.82% of the companies in the same industry.
85.45% 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 | 13.07 | ||
| EV/EBITDA | 12.4 |
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 21.88% in the coming years.
PEG (NY)0.6
PEG (5Y)1.1
EPS Next 2Y23.64%
EPS Next 3Y21.88%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.27%, which is pretty low.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.76. PRIM pays more dividend than 85.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
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 2Y23.64%
EPS Next 3Y21.88%
118.41
+1.26 (+1.08%)
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-11.74%
Market Cap6.40B
Revenue(TTM)7.46B
Net Income(TTM)277.14M
Analysts81.11
Price Target149.76 (26.48%)
Short Float %3.07%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.43%
DP5.83%
Div Incr Years1
Div Non Decr Years16
Ex-Date
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)16.89%
PT rev (3m)52.74%
EPS NQ rev (1m)-5.82%
EPS NQ rev (3m)-9.19%
EPS NY rev (1m)2.79%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)1.75%
Revenue NQ rev (3m)3.99%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 20.07 | ||
| P/S | 0.86 | ||
| P/FCF | 13.07 | ||
| P/OCF | 10.22 | ||
| P/B | 3.93 | ||
| P/tB | 11.09 | ||
| EV/EBITDA | 12.4 |
EPS(TTM)5.67
EY4.79%
EPS(NY)5.9
Fwd EY4.98%
FCF(TTM)9.06
FCFY7.65%
OCF(TTM)11.59
OCFY9.78%
SpS138.1
BVpS30.14
TBVpS10.68
PEG (NY)0.6
PEG (5Y)1.1
Graham Number62.01
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 | 3.67 |
F-Score7
WACC10.11%
ROIC/WACC1.19
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 Y34.94%
EPS Next 2Y23.64%
EPS Next 3Y21.88%
EPS Next 5Y12.67%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%32.1%
Revenue Next Year14.07%
Revenue Next 2Y11.3%
Revenue Next 3Y11.09%
Revenue Next 5Y9.21%
EBIT growth 1Y37.94%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year62.14%
EBIT Next 3Y25.55%
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 of PRIMORIS SERVICES CORP (PRIM) stock?
ChartMill assigns a valuation rating of 7 / 10 to PRIMORIS SERVICES CORP (PRIM). This can be considered as Undervalued.
What is the profitability of PRIM stock?
PRIMORIS SERVICES CORP (PRIM) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for PRIM stock?
The Price/Earnings (PE) ratio for PRIMORIS SERVICES CORP (PRIM) is 20.88 and the Price/Book (PB) ratio is 3.93.
Can you provide the financial health for PRIM stock?
The financial health rating of PRIMORIS SERVICES CORP (PRIM) is 6 / 10.