NYSE:TPC

Stock Analysis Report

Executive Summary

Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide.

Rewards

Trading at 43.9% below its fair value

Earnings are forecast to grow 106.38% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Tutor Perini's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TPC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

TPC

0.05%

US Construction

0.5%

US Market


1 Year Return

-33.4%

TPC

13.7%

US Construction

20.3%

US Market

Return vs Industry: TPC underperformed the US Construction industry which returned 13.7% over the past year.

Return vs Market: TPC underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

TPCIndustryMarket
7 Day0.3%0.05%0.5%
30 Day4.6%1.0%2.0%
90 Day-22.0%5.9%9.4%
1 Year-33.4%-33.4%14.6%13.7%22.8%20.3%
3 Year-56.5%-56.5%12.1%9.6%50.1%40.4%
5 Year-53.9%-53.9%42.6%37.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tutor Perini undervalued compared to its fair value and its price relative to the market?

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPC ($11.94) is trading below our estimate of fair value ($21.28)

Significantly Below Fair Value: TPC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TPC is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: TPC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TPC is good value based on its PB Ratio (0.4x) compared to the US Construction industry average (1.8x).


Next Steps

Future Growth

How is Tutor Perini forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

106.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TPC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TPC's is expected to become profitable in the next 3 years.

Revenue vs Market: TPC's revenue (9.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TPC's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPC's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Tutor Perini performed over the past 5 years?

-27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPC is currently unprofitable.

Growing Profit Margin: TPC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TPC is unprofitable, and losses have increased over the past 5 years at a rate of -27% per year.

Accelerating Growth: Unable to compare TPC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TPC is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (2.4%).


Return on Equity

High ROE: TPC has a negative Return on Equity (-15.2%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tutor Perini's financial position?


Financial Position Analysis

Short Term Liabilities: TPC's short term assets ($3.6B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: TPC's short term assets ($3.6B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: TPC's debt to equity ratio (55.6%) is considered high.

Reducing Debt: TPC's debt to equity ratio has reduced from 70.5% to 55.6% over the past 5 years.


Balance Sheet

Inventory Level: TPC has a low level of unsold assets or inventory.

Debt Coverage by Assets: TPC's debt is covered by short term assets (assets are 4.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TPC has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TPC has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Tutor Perini's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TPC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TPC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TPC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TPC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TPC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Ronald Tutor (79yo)

19.9yrs

Tenure

US$23,492,298

Compensation

Mr. Ronald N. Tutor serves as President of Black Construction Corporation. Mr. Tutor has been Chief Executive Officer of Tutor Perini Corporation since March 29, 2000. He was the Owner of Tutor-saliba Corp ...


CEO Compensation Analysis

Compensation vs Market: Ronald's total compensation ($USD23.49M) is above average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Ronald's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Tutor
Chairman & CEO19.9yrsUS$23.49m16.27% $96.4m
James Frost
President5yrsUS$4.83m1.15% $6.8m
Gary Smalley
Executive VP & CFO4.4yrsUS$4.33m0.045% $266.0k
Wendy Hallgren
Executive VP & General Counsel1.5yrsUS$460.83kno data
Ryan Soroka
Chief Accounting Officer & VP2.8yrsno datano data
Jorge Casado
Vice President of Investor Relations & Corporate Communications0yrsno datano data
Craig Shaw
Executive Vice President6.8yrsUS$1.56mno data
John Barrett
Executive VP0yrsno datano data
William Palmer
Senior VP & Chief Business Development Officer0yrsno datano data
Jean Abiassi
President and CEO of Building & Specialty Contractors Groups0.4yrsno datano data

4.4yrs

Average Tenure

60yo

Average Age

Experienced Management: TPC's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Tutor
Chairman & CEO19.9yrsUS$23.49m16.27% $96.4m
James Frost
President5yrsUS$4.83m1.15% $6.8m
Robert Band
Chairman0yrsUS$813.55kno data
Sidney Feltenstein
Director6.3yrsUS$234.80k0.13% $743.6k
Michael Klein
Lead Independent Director0yrsUS$269.30k0.89% $5.3m
Raymond Oneglia
Independent Director19.9yrsUS$238.70k0.18% $1.1m
Peter Arkley
Independent Director19.8yrsUS$242.30k0.14% $842.2k
Dale Reiss
Independent Director5.8yrsUS$265.10k0.067% $397.3k
Robert Lieber
Independent Director5.5yrsUS$248.70k0.12% $709.2k
Dickran Tevrizian
Independent Director8.4yrsUS$238.70k0.14% $814.4k

7.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: TPC's board of directors are considered experienced (7.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tutor Perini Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tutor Perini Corporation
  • Ticker: TPC
  • Exchange: NYSE
  • Founded: 1894
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$592.787m
  • Shares outstanding: 50.28m
  • Website: https://www.tutorperini.com

Number of Employees


Location

  • Tutor Perini Corporation
  • 15901 Olden Street
  • Sylmar
  • California
  • 91342
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
PE2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide. The company operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction, replacement, and reconstruction of infrastructure, including highways, bridges, tunnels, mass-transit systems, and water management and wastewater treatment facilities. This segment also provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers services in various specialized building markets, including hospitality and gaming, transportation, healthcare, commercial offices, government facilities, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, and industrial and high-tech. The Specialty Contractors segment provides electrical, mechanical, plumbing, fire protection systems, and pneumatically placed concrete services, as well as heating, ventilation, and air conditioning services for the industrial, commercial, hospitality and gaming, and mass-transit end markets. Tutor Perini Corporation also offers general contracting, pre-construction planning, and project management services, including planning and scheduling of manpower, equipment, materials, and subcontractors; and self-performed construction services comprising site work, concrete forming and placement, steel erection, electrical, and mechanical. The company was formerly known as Perini Corporation and changed its name to Tutor Perini Corporation in 2009. Tutor Perini Corporation was founded in 1894 and is headquartered in Sylmar, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:05
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.