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

Solid track record and good 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


Market Performance


7 Day Return

5.4%

PRIM

3.5%

US Construction

1.0%

US Market


1 Year Return

-3.4%

PRIM

8.1%

US Construction

8.0%

US Market

Return vs Industry: PRIM underperformed the US Construction industry which returned 8.1% over the past year.

Return vs Market: PRIM underperformed the US Market which returned 8% over the past year.


Shareholder returns

PRIMIndustryMarket
7 Day5.4%3.5%1.0%
30 Day5.2%3.8%-0.07%
90 Day2.8%2.6%-1.0%
1 Year-2.2%-3.4%9.0%8.1%10.4%8.0%
3 Year11.0%7.7%28.3%25.4%46.2%36.7%
5 Year-19.7%-23.6%25.3%21.0%64.3%46.2%

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?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRIM ($21.18) is trading below our estimate of fair value ($25.61)

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 (12.7x) compared to the Construction industry average (17.7x).

PE vs Market: PRIM is good value based on its PE Ratio (12.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: PRIM is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: PRIM is overvalued based on its PB Ratio (1.7x) 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 3 analysts?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRIM's forecast earnings growth (24.9% per year) is above the savings rate (2.7%).

Earnings vs Market: PRIM's earnings (24.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PRIM's revenue (7.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PRIM's revenue (7.2% 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


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

Earnings Trend: PRIM's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: PRIM's earnings growth over the past year (52.7%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: PRIM earnings growth over the past year (52.7%) exceeded the Construction industry 2.6%.


Return on Equity

High ROE: PRIM's Return on Equity (14.5%) is considered low.


Return on Assets

ROA vs Industry: PRIM has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: PRIM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Primoris Services's financial position?


Financial Position Analysis

Short Term Liabilities: PRIM's short term assets ($972.3M) exceeds its short term liabilities ($687.0M)

Long Term Liabilities: PRIM's short term assets (972.3M) exceeds its long term liabilities (517.4M)


Debt to Equity History and Analysis

Debt Level: PRIM's debt to equity ratio (67.5%) is considered high

Reducing Debt: PRIM's debt to equity ratio has increased from 51.1% to 67.5% over the past 5 years.

Debt Coverage: PRIM's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: PRIM's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: PRIM has a high level of physical assets or inventory.

Debt Coverage by Assets: PRIM's debt is covered by short term assets (assets are 2.320230x debt).


Next Steps

Dividend

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

1.13%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PRIM's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PRIM's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (14.4%), 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

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

1.0yrs

Average management tenure


CEO

David King (67yo)

4.2yrs

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

Compensation vs. Market: David's total compensation ($USD1.69M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

1.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: PRIM's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

9.4yrs

Average Tenure

67yo

Average Age

Experienced Board: PRIM's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$4,220,41823 Sep 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares206,439
Max PriceUS$20.44
SellUS$188,50118 Sep 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares8,925
Max PriceUS$21.12
SellUS$49,14116 Sep 19
Stephen Cook
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares2,349
Max PriceUS$20.92
SellUS$7,639,49113 Sep 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares372,347
Max PriceUS$20.83
SellUS$875,10421 Aug 19
Brian Pratt
EntityIndividual
Role
Member of the Board of Directors
Director & Senior Strategic Advisor
Shares43,745
Max PriceUS$20.01
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

Ownership Breakdown


Management Team

  • Brian Pratt (67yo)

    Director & Senior Strategic Advisor

    • Tenure: 11.3yrs
    • Compensation: US$579.07k
  • Travis Stricker (48yo)

    Chief Accounting Officer & Senior VP of Finance

    • Tenure: 1yrs
  • John Moreno (50yo)

    Executive VP & COO

    • Tenure: 0.5yrs
  • Ken Dodgen (53yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$815.77k
  • John Perisich (54yo)

    Executive VP

    • Tenure: 6.4yrs
    • Compensation: US$913.11k
  • Scott Summers (61yo)

    Group President of Pipeline & Underground

    • Tenure: 1.1yrs
    • Compensation: US$1.01m
  • David King (67yo)

    CEO & Executive Chairman

    • Tenure: 4.2yrs
    • Compensation: US$1.69m
  • Kate Tholking

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Tom McCormick (57yo)

    President & Director

    • Tenure: 0.2yrs
    • Compensation: US$1.34m
  • Scot Kathmann

    Senior Vice President of Sales & Marketing

    • Tenure: 1.1yrs

Board Members

  • Bob Tinstman (73yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$178.33k
  • Brian Pratt (67yo)

    Director & Senior Strategic Advisor

    • Tenure: 11.3yrs
    • Compensation: US$579.07k
  • Carla Mashinski (56yo)

    Independent Director

    • Tenure: 0.6yrs
  • Tommy Tucker (76yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$178.33k
  • John Schauerman (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$163.33k
  • Steve Cook (69yo)

    Independent Lead Director

    • Tenure: 9.4yrs
    • Compensation: US$178.33k
  • Peter Brown (75yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$183.33k
  • David King (67yo)

    CEO & Executive Chairman

    • Tenure: 4.2yrs
    • Compensation: US$1.69m
  • Tom McCormick (57yo)

    President & Director

    • Tenure: 0.2yrs
    • 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:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.080b
  • 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 Analysis2019/10/22 00:13
End of Day Share Price2019/10/21 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.