NasdaqGS:PRIM

Stock Analysis Report

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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 Analysis

Adequate balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.8%

PRIM

6.4%

US Construction

1.2%

US Market


1 Year Return

-8.0%

PRIM

8.8%

US Construction

16.8%

US Market

Return vs Industry: PRIM underperformed the US Construction industry which returned 6.3% over the past year.

Return vs Market: PRIM underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

PRIMIndustryMarket
7 Day6.8%6.4%1.2%
30 Day14.6%20.0%4.9%
90 Day34.6%37.5%20.0%
1 Year-6.7%-8.0%9.6%8.8%19.3%16.8%
3 Year-27.7%-30.1%8.3%5.9%43.7%34.4%
5 Year7.9%2.2%36.5%31.5%75.5%56.6%

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?

9.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRIM ($18.42) is trading above our estimate of fair value ($10.9)

Significantly Below Fair Value: PRIM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PRIM is good value based on its PE Ratio (9.9x) compared to the US Construction industry average (15.4x).

PE vs Market: PRIM is good value based on its PE Ratio (9.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PRIM is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PRIM is good value based on its PB Ratio (1.4x) compared to the US Construction industry average (1.7x).


Next Steps

Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRIM's forecast earnings growth (6.7% per year) is above the savings rate (2.2%).

Earnings vs Market: PRIM's earnings (6.7% per year) are forecast to grow slower than the US market (23.7% per year).

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

Revenue vs Market: PRIM's revenue (2.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: PRIM's revenue (2.7% 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


Next Steps

Past Performance

How has Primoris Services performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRIM has high quality earnings.

Growing Profit Margin: PRIM's current net profit margins (2.8%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: PRIM's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: PRIM's earnings growth over the past year (8.2%) is below its 5-year average (22% per year).

Earnings vs Industry: PRIM earnings growth over the past year (8.2%) underperformed the Construction industry 16.8%.


Return on Equity

High ROE: PRIM's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is Primoris Services's financial position?


Financial Position Analysis

Short Term Liabilities: PRIM's short term assets ($1.0B) exceed its short term liabilities ($757.3M).

Long Term Liabilities: PRIM's short term assets ($1.0B) exceed its long term liabilities ($551.3M).


Debt to Equity History and Analysis

Debt Level: PRIM's debt to equity ratio (56.5%) is considered high.

Reducing Debt: PRIM's debt to equity ratio has increased from 51.1% to 56.5% over the past 5 years.

Debt Coverage: PRIM's debt is well covered by operating cash flow (75.6%).

Interest Coverage: PRIM's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PRIM's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PRIM's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.35%).


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 (13%), 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?

1.8yrs

Average management tenure


CEO

Tom McCormick (58 yo)

0.75

Tenure

US$1,205,802

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 also serves as its ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD1.21M) is below average for companies of similar size in the US market ($USD3.02M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David King
Executive Chairman & Senior Strategic Advisor1.25yrsUS$1.65m0.084%
$ 748.2k
Thomas McCormick
CEO, President & Director0.75yrUS$1.21m0.14%
$ 1.3m
Kenneth Dodgen
Executive VP & CFO1.75yrsUS$743.83k0.028%
$ 245.3k
John Moreno
Executive VP & COO1.33yrsUS$1.26mno data
John Perisich
Executive VP7.25yrsUS$873.66k0.29%
$ 2.6m
Travis Stricker
Chief Accounting Officer & Senior VP of Finance1.83yrsno data0.0029%
$ 26.2k
Kate Tholking
Vice President of Investor Relationsno datano datano data
Scot Kathmann
Senior Vice President of Sales & Marketing1.92yrsno datano data
Scott Summers
Group President of Pipeline & Underground1.92yrsUS$1.01mno data
Timothy Healy
Group President of Power1.92yrsUS$648.93kno data
Jeremy Kinch
Group President of Power0.58yrno datano data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Management: PRIM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David King
Executive Chairman & Senior Strategic Advisor1.25yrsUS$1.65m0.084%
$ 748.2k
Thomas McCormick
CEO, President & Director0.75yrUS$1.21m0.14%
$ 1.3m
Robert Tinstman
Independent Director10.67yrsUS$178.33k0.083%
$ 736.7k
Terry McCallister
Director0.083yrno datano data
Carla Mashinski
Independent Director1.42yrsUS$81.67k0.012%
$ 110.5k
Thomas Tucker
Independent Director12.08yrsUS$178.33k0.079%
$ 698.0k
John Schauerman
Independent Director3.75yrsUS$163.33k0.79%
$ 7.0m
Stephen Cook
Independent Lead Director10.25yrsUS$178.33k0.037%
$ 327.1k
Peter Brown
Independent Director11.5yrsUS$183.33k0.073%
$ 644.6k
Patricia Wagner
Director0.083yrno datano data

2.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: PRIM's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: PRIM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$888.794m
  • Shares outstanding: 48.25m
  • 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 Analysis2020/08/11 00:26
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.