PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
NYSE:PRIM - New York Stock Exchange, Inc. - US74164F1030 - Common Stock - Currency: USD
Overall PRIM gets a fundamental rating of 6 out of 10. We evaluated PRIM against 52 industry peers in the Construction & Engineering industry. PRIM has only an average score on both its financial health and profitability. 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.
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 (4.89%) is better than 67.31% of its industry peers.
PRIM has a better Return On Equity (14.26%) than 67.31% of its industry peers.
PRIM has a better Return On Invested Capital (10.10%) than 71.15% 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 63.46% of the companies in the same industry.
PRIM's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 5.24%, PRIM is in line with its industry, outperforming 55.77% 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 11.22%. This is in the lower half of the industry: PRIM underperforms 63.46% 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 | 5.24% | ||
| 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
PRIM has an Altman-Z score of 3.33. 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 3.33, PRIM is in line with its industry, outperforming 57.69% of the companies in the same industry.
PRIM has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
PRIM has a better Debt to FCF ratio (1.37) than 80.77% 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 better Debt to Equity ratio (0.38) than 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.33 |
ROIC/WACC1
WACC10.12%
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.
PRIM has a Current ratio (1.22) which 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.
With a Quick ratio value of 1.22, PRIM perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| 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.
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.
PRIM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.45%.
PRIM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.43% yearly.
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 Y18.5%
EPS Next 2Y15.27%
EPS Next 3Y13.91%
EPS Next 5Y13.81%
Revenue Next Year8.58%
Revenue Next 2Y6.84%
Revenue Next 3Y6.77%
Revenue Next 5Y7.44%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 19.38, PRIM is valued on the expensive side.
Based on the Price/Earnings ratio, PRIM is valued cheaper than 82.69% of the companies in the same industry.
PRIM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
PRIM is valuated correctly with a Price/Forward Earnings ratio of 16.52.
Based on the Price/Forward Earnings ratio, PRIM is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
PRIM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRIM indicates a rather cheap valuation: PRIM is cheaper than 88.46% of the companies listed in the same industry.
92.31% 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 | 10.25 | ||
| EV/EBITDA | 11.02 |
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 13.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.02
EPS Next 2Y15.27%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.41%, which is pretty low.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.70. PRIM pays more dividend than 84.62% of the companies in the same industry.
With a Dividend Yield of 0.41, PRIM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 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 6.77% of its income as dividend. This is a sustainable payout ratio.
DP6.77%
EPS Next 2Y15.27%
EPS Next 3Y13.91%
84.71
+2.71 (+3.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.89%
Inst Owner Change7.07%
Ins Owners0.92%
Ins Owner Change0.51%
Market Cap4.57B
Analysts84.71
Price Target89.87 (6.09%)
Short Float %4.33%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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)5.02%
PT rev (3m)-3.31%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 16.52 | ||
| P/S | 0.69 | ||
| P/FCF | 10.25 | ||
| P/OCF | 7.59 | ||
| P/B | 3.16 | ||
| P/tB | 11.86 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)4.37
EY5.16%
EPS(NY)5.13
Fwd EY6.05%
FCF(TTM)8.26
FCFY9.76%
OCF(TTM)11.17
OCFY13.18%
SpS122.26
BVpS26.77
TBVpS7.14
PEG (NY)1.05
PEG (5Y)1.02
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 | 3.33 |
F-Score7
WACC10.12%
ROIC/WACC1
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 Y18.5%
EPS Next 2Y15.27%
EPS Next 3Y13.91%
EPS Next 5Y13.81%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y22.1%
Revenue growth 5Y15.43%
Sales Q2Q%16.66%
Revenue Next Year8.58%
Revenue Next 2Y6.84%
Revenue Next 3Y6.77%
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%