PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRIM - US74164F1030 - Common Stock
125.66 USD
-0.2 (-0.16%)
127.54 USD
+1.88 (+1.5%)
PRIM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. PRIM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PRIM had positive earnings in the past year.
In the past year PRIM had a positive cash flow from operations.
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
PRIM has a Return On Assets of 5.96%. This is in the better half of the industry: PRIM outperforms 65.45% of its industry peers.
PRIM has a better Return On Equity (17.03%) than 67.27% of its industry peers.
The Return On Invested Capital of PRIM (12.01%) is better than 70.91% 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 17.90%.
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
Looking at the Profit Margin, with a value of 3.72%, PRIM is in line with its industry, outperforming 56.36% of the companies in the same industry.
PRIM's Profit Margin has been stable in the last couple of years.
PRIM has a Operating Margin (5.69%) which is in line with its industry peers.
PRIM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.03%, PRIM is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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
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.
The number of shares outstanding for PRIM has been increased compared to 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 3.77. This indicates that PRIM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.77, PRIM is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
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 81.82% 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.
PRIM has a Debt to Equity ratio of 0.26. This is in the better half of the industry: PRIM outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.23
WACC9.73%
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.
PRIM has a worse Current ratio (1.20) than 60.00% of its industry peers.
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 (1.20) which is comparable to the rest of the 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.
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.
Looking at the last year, PRIM shows a very strong growth in Revenue. 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
PRIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.02% yearly.
PRIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y46.27%
EPS Next 2Y24.94%
EPS Next 3Y22.2%
EPS Next 5Y13.02%
Revenue Next Year20.63%
Revenue Next 2Y13.65%
Revenue Next 3Y11.82%
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
PRIM is valuated rather expensively with a Price/Earnings ratio of 22.16.
Based on the Price/Earnings ratio, PRIM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
PRIM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
Based on the Price/Forward Earnings ratio of 20.85, 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 78.18% of the companies are valued more expensively.
PRIM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
PRIM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRIM is cheaper than 85.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 13.3 |
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.
PRIM's earnings are expected to grow with 22.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)1.17
EPS Next 2Y24.94%
EPS Next 3Y22.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.25%, 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 1.65. PRIM pays more dividend than 83.64% 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 | 0.25% |
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
5.83% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP5.83%
EPS Next 2Y24.94%
EPS Next 3Y22.2%
125.66
-0.2 (-0.16%)
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-1.12%
Market Cap6.79B
Revenue(TTM)7.46B
Net Income(TTM)277.14M
Analysts78
Price Target153.55 (22.19%)
Short Float %2.99%
Short Ratio1.98
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-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)2.53%
PT rev (3m)22.39%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)8.4%
EPS NY rev (3m)11.43%
Revenue NQ rev (1m)2.73%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)5.76%
Revenue NY rev (3m)6.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.85 | ||
| P/S | 0.91 | ||
| P/FCF | 13.87 | ||
| P/OCF | 10.85 | ||
| P/B | 4.17 | ||
| P/tB | 11.78 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)5.67
EY4.51%
EPS(NY)6.03
Fwd EY4.8%
FCF(TTM)9.06
FCFY7.21%
OCF(TTM)11.58
OCFY9.22%
SpS138.05
BVpS30.13
TBVpS10.67
PEG (NY)0.48
PEG (5Y)1.17
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 | 3.77 |
F-Score7
WACC9.73%
ROIC/WACC1.23
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 2Y24.94%
EPS Next 3Y22.2%
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 2Y13.65%
Revenue Next 3Y11.82%
Revenue Next 5Y7.99%
EBIT growth 1Y37.94%
EBIT growth 3Y19.69%
EBIT growth 5Y17.82%
EBIT Next Year73.41%
EBIT Next 3Y29.12%
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 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.
Can you provide the PE and PB ratios for PRIM stock?
The Price/Earnings (PE) ratio for PRIMORIS SERVICES CORP (PRIM) is 22.16 and the Price/Book (PB) ratio is 4.17.
Can you provide the financial health for PRIM stock?
The financial health rating of PRIMORIS SERVICES CORP (PRIM) is 6 / 10.