PRIMORIS SERVICES CORP (PRIM) Stock Fundamental Analysis
NYSE:PRIM - New York Stock Exchange, Inc. - US74164F1030 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PRIM. PRIM was compared to 49 industry peers in the Construction & Engineering industry. PRIM has an average financial health and profitability rating. PRIM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year PRIM was profitable.
In the past year PRIM had a positive cash flow from operations.
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
PRIM's Return On Assets of 3.88% is fine compared to the rest of the industry. PRIM outperforms 60.87% of its industry peers.
With a decent Return On Equity value of 12.12%, PRIM is doing good in the industry, outperforming 67.39% of the companies in the same industry.
The Return On Invested Capital of PRIM (9.05%) is better than 69.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRIM is below the industry average of 11.92%.
The last Return On Invested Capital (9.05%) for PRIM is above the 3 year average (7.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 12.12% | ||
| ROIC | 9.05% |
ROA(3y)3.86%
ROA(5y)4.28%
ROE(3y)11.29%
ROE(5y)12.33%
ROIC(3y)7.24%
ROIC(5y)8.37%
1.3 Margins
PRIM has a Profit Margin of 2.68%. This is comparable to the rest of the industry: PRIM outperforms 54.35% of its industry peers.
In the last couple of years the Profit Margin of PRIM has declined.
The Operating Margin of PRIM (5.01%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PRIM has declined.
PRIM's Gross Margin of 11.00% is on the low side compared to the rest of the industry. PRIM is outperformed by 67.39% of its industry peers.
PRIM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.01% | ||
| PM (TTM) | 2.68% | ||
| GM | 11% |
OM growth 3Y-1.87%
OM growth 5Y-1.54%
PM growth 3Y-9.8%
PM growth 5Y-3.49%
GM growth 3Y-1.03%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRIM is destroying 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.
The debt/assets ratio for PRIM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.97 indicates that PRIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
PRIM's Altman-Z score of 2.97 is in line compared to the rest of the industry. PRIM outperforms 52.17% of its industry peers.
The Debt to FCF ratio of PRIM is 3.04, which is a good value as it means it would take PRIM, 3.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.04, PRIM is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that PRIM is somewhat dependend on debt financing.
PRIM has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.89
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.38 indicates that PRIM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, PRIM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that PRIM should not have too much problems paying its short term obligations.
PRIM has a Quick ratio of 1.38. This is comparable to the rest of the industry: PRIM outperforms 54.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.50% over the past year.
Measured over the past 5 years, PRIM shows a small growth in Earnings Per Share. The EPS has been growing by 7.99% on average per year.
The Revenue has grown by 11.07% in the past year. This is quite good.
Measured over the past years, PRIM shows a quite strong growth in Revenue. The Revenue has been growing by 14.22% on average per year.
EPS 1Y (TTM)42.5%
EPS 3Y0.73%
EPS 5Y7.99%
EPS Q2Q%37.08%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y17.85%
Revenue growth 5Y14.22%
Sales Q2Q%7.82%
3.2 Future
The Earnings Per Share is expected to grow by 27.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y53.25%
EPS Next 2Y32.68%
EPS Next 3Y27.24%
EPS Next 5YN/A
Revenue Next Year8.57%
Revenue Next 2Y6.9%
Revenue Next 3Y6.32%
Revenue Next 5YN/A
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 accelerating.
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 19.30, 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 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PRIM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.16, the valuation of PRIM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRIM indicates a somewhat cheap valuation: PRIM is cheaper than 78.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PRIM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRIM is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRIM is valued cheaper than 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 10.32 |
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.
A more expensive valuation may be justified as PRIM's earnings are expected to grow with 27.24% in the coming years.
PEG (NY)0.36
PEG (5Y)2.42
EPS Next 2Y32.68%
EPS Next 3Y27.24%
5. Dividend
5.1 Amount
PRIM has a yearly dividend return of 0.43%, which is pretty low.
The stock price of PRIM dropped by -20.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PRIM's Dividend Yield is rather good when compared to the industry average which is at 1.87. PRIM pays more dividend than 82.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, PRIM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of PRIM decreases each year by -0.07%.
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)-0.07%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
7.80% of the earnings are spent on dividend by PRIM. This is a low number and sustainable payout ratio.
DP7.8%
EPS Next 2Y32.68%
EPS Next 3Y27.24%
66.02
-1.78 (-2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.73%
Inst Owner Change-1.42%
Ins Owners1.12%
Ins Owner Change-0.95%
Market Cap3.55B
Analysts84
Price Target90.44 (36.99%)
Short Float %3.23%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.07%
DP7.8%
Div Incr Years1
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.8%
Min EPS beat(2)17.07%
Max EPS beat(2)28.52%
EPS beat(4)4
Avg EPS beat(4)72.05%
Min EPS beat(4)1.27%
Max EPS beat(4)241.32%
EPS beat(8)8
Avg EPS beat(8)56.54%
EPS beat(12)8
Avg EPS beat(12)20.41%
EPS beat(16)11
Avg EPS beat(16)34.39%
Revenue beat(2)1
Avg Revenue beat(2)0.98%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)2.17%
Revenue beat(4)2
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)2.17%
Revenue beat(8)5
Avg Revenue beat(8)2.56%
Revenue beat(12)7
Avg Revenue beat(12)2.29%
Revenue beat(16)9
Avg Revenue beat(16)1.16%
PT rev (1m)1.92%
PT rev (3m)41.06%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 16.16 | ||
| P/S | 0.58 | ||
| P/FCF | 11.94 | ||
| P/OCF | 8.53 | ||
| P/B | 2.61 | ||
| P/tB | 12.32 | ||
| EV/EBITDA | 10.32 |
EPS(TTM)3.42
EY5.18%
EPS(NY)4.08
Fwd EY6.19%
FCF(TTM)5.53
FCFY8.37%
OCF(TTM)7.74
OCFY11.72%
SpS114.34
BVpS25.28
TBVpS5.36
PEG (NY)0.36
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 12.12% | ||
| ROCE | 11.71% | ||
| ROIC | 9.05% | ||
| ROICexc | 10.45% | ||
| ROICexgc | 19.73% | ||
| OM | 5.01% | ||
| PM (TTM) | 2.68% | ||
| GM | 11% | ||
| FCFM | 4.83% |
ROA(3y)3.86%
ROA(5y)4.28%
ROE(3y)11.29%
ROE(5y)12.33%
ROIC(3y)7.24%
ROIC(5y)8.37%
ROICexc(3y)8.06%
ROICexc(5y)9.87%
ROICexgc(3y)15.74%
ROICexgc(5y)16.62%
ROCE(3y)9.37%
ROCE(5y)10.83%
ROICexcg growth 3Y-7.82%
ROICexcg growth 5Y-4.18%
ROICexc growth 3Y-15.78%
ROICexc growth 5Y-8.26%
OM growth 3Y-1.87%
OM growth 5Y-1.54%
PM growth 3Y-9.8%
PM growth 5Y-3.49%
GM growth 3Y-1.03%
GM growth 5Y-1.49%
F-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 120.61% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 4.12 | ||
| Cash Conversion | 102.35% | ||
| Profit Quality | 180.4% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.97 |
F-Score6
WACC10.17%
ROIC/WACC0.89
Cap/Depr(3y)106.17%
Cap/Depr(5y)101.45%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.5%
EPS 3Y0.73%
EPS 5Y7.99%
EPS Q2Q%37.08%
EPS Next Y53.25%
EPS Next 2Y32.68%
EPS Next 3Y27.24%
EPS Next 5YN/A
Revenue 1Y (TTM)11.07%
Revenue growth 3Y17.85%
Revenue growth 5Y14.22%
Sales Q2Q%7.82%
Revenue Next Year8.57%
Revenue Next 2Y6.9%
Revenue Next 3Y6.32%
Revenue Next 5YN/A
EBIT growth 1Y25.27%
EBIT growth 3Y15.65%
EBIT growth 5Y12.47%
EBIT Next Year62.42%
EBIT Next 3Y25.72%
EBIT Next 5YN/A
FCF growth 1Y305.35%
FCF growth 3Y-27.19%
FCF growth 5Y41.91%
OCF growth 1Y1218.13%
OCF growth 3Y-13.98%
OCF growth 5Y9.38%