NasdaqGS:PRIM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.8%

NasdaqGS:PRIM

-2.4%

US Construction

-0.7%

US Market


1 Year Return

-22.0%

NasdaqGS:PRIM

-12.9%

US Construction

-0.5%

US Market

PRIM underperformed the Construction industry which returned -12.8% over the past year.

PRIM underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

PRIMIndustryMarket
7 Day0.8%-2.4%-0.7%
30 Day-0.5%-8.6%-3.0%
90 Day-2.3%-3.2%0.9%
1 Year-21.1%-22.0%-12.2%-12.9%1.7%-0.5%
3 Year14.0%10.6%8.2%5.9%39.5%30.4%
5 Year-26.7%-30.2%-0.9%-4.1%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Primoris Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

Primoris Services's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Primoris Services is good value based on earnings compared to the US Construction industry average.

Primoris Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Primoris Services is good value based on expected growth next year.


Price Based on Value of Assets

Primoris Services is good value based on assets compared to the US Construction industry average.


Next Steps

Future Growth

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

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Primoris Services's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Primoris Services's earnings are expected to grow significantly at over 20% yearly.

Primoris Services's revenue growth is positive but not above the United States of America market average.

Primoris Services's earnings growth is expected to exceed the United States of America market average.

Primoris Services's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Primoris Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Primoris Services performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Primoris Services's year on year earnings growth rate has been positive over the past 5 years.

Primoris Services's 1-year earnings growth exceeds its 5-year average (52.7% vs 8.1%)

Primoris Services's earnings growth has exceeded the US Construction industry average in the past year (52.7% vs 2.6%).


Return on Equity

Primoris Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Primoris Services used its assets more efficiently than the US Construction industry average last year based on Return on Assets.


Return on Capital Employed

Primoris Services has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Primoris Services's financial position?


Financial Position Analysis

Primoris Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Primoris Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Primoris Services's level of debt (67.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (51.1% vs 67.5% today).

Debt is not well covered by operating cash flow (7.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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

0.65%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Primoris Services before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Primoris Services's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Primoris Services's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (6.9x coverage).


Future Payout to Shareholders

No need to calculate the sustainability of Primoris Services's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Primoris Services's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

David King (67yo)

4.0yrs

Tenure

US$1,687,208

Compensation

Mr. David L. King has been President and Director of Willbros Group, Inc. since June 1, 2018. He serves as CEO & Director at Primoris Services Corporation. Mr. King serves as Chairman of the Board at Primo ...


CEO Compensation Analysis

David's remuneration is lower than average for companies of similar size in United States of America.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.9yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Primoris Services management team is less than 2 years, this suggests a new team.


Board Age and Tenure

9.5yrs

Average Tenure

67yo

Average Age

The tenure for the Primoris Services board of directors is about average.


Insider Trading

Primoris Services individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$5,700,00010 Jun 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares300,000
Max PriceUS$19.00
SellUS$3,518,08623 May 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares175,118
Max PriceUS$20.09
SellUS$2,052,08820 May 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares99,810
Max PriceUS$20.57
SellUS$4,892,02202 Apr 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares235,751
Max PriceUS$20.75
SellUS$1,739,81121 Mar 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares76,951
Max PriceUS$22.61
SellUS$794,75613 Mar 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares35,429
Max PriceUS$22.45
SellUS$3,009,47107 Mar 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares129,812
Max PriceUS$23.32
SellUS$621,73313 Nov 18
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares25,583
Max PriceUS$24.30
SellUS$18,224,10724 Sep 18
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares725,003
Max PriceUS$25.31
SellUS$200,11124 Sep 18
David King
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Chairman
Shares7,866
Max PriceUS$25.44
SellUS$49,10010 Sep 18
Stephen Cook
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares1,964
Max PriceUS$25.00

Ownership Breakdown


Management Team

  • Brian Pratt (67yo)

    Director & Senior Strategic Advisor

    • Tenure: 11.1yrs
    • Compensation: US$579.07k
  • Travis Stricker (48yo)

    Chief Accounting Officer & Senior VP of Finance

    • Tenure: 0.8yrs
  • John Moreno (50yo)

    Executive VP & COO

    • Tenure: 0.3yrs
  • Ken Dodgen (53yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$815.77k
  • John Perisich (54yo)

    Executive VP

    • Tenure: 6.3yrs
    • Compensation: US$913.11k
  • Scott Summers (61yo)

    Group President of Pipeline & Underground

    • Tenure: 0.9yrs
    • Compensation: US$1.01m
  • David King (67yo)

    CEO & Executive Chairman

    • Tenure: 4.0yrs
    • Compensation: US$1.69m
  • Kate Tholking

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Tom McCormick (57yo)

    President & Director

    • Tenure: 0.0yrs
    • Compensation: US$1.34m
  • Scot Kathmann

    Senior Vice President of Sales & Marketing

    • Tenure: 0.9yrs

Board Members

  • Bob Tinstman (73yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$178.33k
  • Brian Pratt (67yo)

    Director & Senior Strategic Advisor

    • Tenure: 11.1yrs
    • Compensation: US$579.07k
  • Carla Mashinski (56yo)

    Independent Director

    • Tenure: 0.4yrs
  • Tommy Tucker (76yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$178.33k
  • John Schauerman (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$163.33k
  • Steve Cook (69yo)

    Independent Lead Director

    • Tenure: 9.3yrs
    • Compensation: US$178.33k
  • Peter Brown (75yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$183.33k
  • David King (67yo)

    CEO & Executive Chairman

    • Tenure: 4.0yrs
    • Compensation: US$1.69m
  • Tom McCormick (57yo)

    President & Director

    • Tenure: 0.0yrs
    • Compensation: US$1.34m

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: 1946
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.017b
  • Shares outstanding: 50.98m
  • Website: https://www.primoriscorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRIMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2008
1PMDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2008

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:19
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.