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Market Cap

US$1.8b

Last Updated

2021/05/07 23:36 UTC

Data Sources

Company Financials +

Executive Summary

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. More Details


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Primoris Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRIM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PRIM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.09%

PRIM

3.1%

US Construction

-0.3%

US Market


1 Year Return

120.7%

PRIM

129.5%

US Construction

50.2%

US Market

Return vs Industry: PRIM underperformed the US Construction industry which returned 130.6% over the past year.

Return vs Market: PRIM exceeded the US Market which returned 51.8% over the past year.


Shareholder returns

PRIMIndustryMarket
7 Day0.09%3.1%-0.3%
30 Day-2.5%5.9%2.2%
90 Day2.7%17.9%3.8%
1 Year123.2%120.7%130.6%129.5%52.7%50.2%
3 Year35.8%31.2%63.5%60.6%63.4%53.1%
5 Year65.3%56.6%111.9%104.4%129.6%104.0%

Long-Term Price Volatility Vs. Market

How volatile is Primoris Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Primoris Services undervalued compared to its fair value and its price relative to the market?

7.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRIM ($32.69) is trading below our estimate of fair value ($35.32)

Significantly Below Fair Value: PRIM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PRIM is good value based on its PE Ratio (13.8x) compared to the US Construction industry average (29x).

PE vs Market: PRIM is good value based on its PE Ratio (13.8x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: PRIM is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PRIM is good value based on its PB Ratio (1.8x) compared to the US Construction industry average (3.1x).


Future Growth

How is Primoris Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRIM's forecast earnings growth (14.5% per year) is above the savings rate (2%).

Earnings vs Market: PRIM's earnings (14.5% per year) are forecast to grow slower than the US market (15.4% per year).

High Growth Earnings: PRIM's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRIM's revenue (5.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PRIM's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRIM's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Primoris Services performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRIM has high quality earnings.

Growing Profit Margin: PRIM's current net profit margins (3.2%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: PRIM's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: PRIM's earnings growth over the past year (49.5%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: PRIM earnings growth over the past year (49.5%) exceeded the Construction industry 9%.


Return on Equity

High ROE: PRIM's Return on Equity (12.7%) is considered low.


Financial Health

How is Primoris Services's financial position?


Financial Position Analysis

Short Term Liabilities: PRIM's short term assets ($1.1B) exceed its short term liabilities ($796.8M).

Long Term Liabilities: PRIM's short term assets ($1.1B) exceed its long term liabilities ($817.3M).


Debt to Equity History and Analysis

Debt Level: PRIM's debt to equity ratio (64.4%) is considered high.

Reducing Debt: PRIM's debt to equity ratio has increased from 53.9% to 64.4% over the past 5 years.

Debt Coverage: PRIM's debt is well covered by operating cash flow (56%).

Interest Coverage: PRIM's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Dividend

What is Primoris Services's current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRIM's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: PRIM's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: PRIM's dividends per share have been stable in the past 10 years.

Growing Dividend: PRIM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.2%), PRIM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Tom McCormick (58 yo)

1.5yrs

Tenure

US$2,151,151

Compensation

Mr. Thomas E. McCormick, also known as Tom, has been the Chief Executive Officer and President of Primoris Services Corporation since November 4, 2019 and April 1, 2019 respectively and serves as its Direc...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.15M) is below average for companies of similar size in the US market ($USD3.76M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PRIM's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: PRIM's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.3%.


Top Shareholders

Company Information

Primoris Services Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Primoris Services Corporation
  • Ticker: PRIM
  • Exchange: NasdaqGS
  • Founded: 1960
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.756b
  • Shares outstanding: 53.72m
  • Website: https://www.primoriscorp.com

Number of Employees


Location

  • Primoris Services Corporation
  • 2300 North Field Street
  • Suite 1900
  • Dallas
  • Texas
  • 75201
  • United States

Listings


Biography

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 23:36
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.