Primoris Services Corporation Fundamental Analysis
Primoris Services Corporation (PRIM) shows moderate financial fundamentals with a PE ratio of 22.16, profit margin of 3.31%, and ROE of 15.21%. The company generates $7.5B in annual revenue with strong year-over-year growth of 18.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PRIM's fundamental strength across five key dimensions:
Efficiency Score
WeakPRIM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPRIM trades at attractive valuation levels.
Growth Score
ExcellentPRIM delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPRIM maintains a strong and stable balance sheet.
Profitability Score
ModeratePRIM maintains healthy but balanced margins.
Key Financial Metrics
Is PRIM Expensive or Cheap?
P/E Ratio
PRIM trades at 22.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PRIM's PEG of 1.12 indicates fair valuation.
Price to Book
The market values Primoris Services Corporation at 3.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.62 times EBITDA. This signals the market has high growth expectations.
How Well Does PRIM Make Money?
Net Profit Margin
For every $100 in sales, Primoris Services Corporation keeps $3.31 as profit after all expenses.
Operating Margin
Core operations generate 4.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.21 in profit for every $100 of shareholder equity.
ROA
Primoris Services Corporation generates $5.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Primoris Services Corporation generates limited operating cash flow of $282.43M, signaling weaker underlying cash strength.
Free Cash Flow
Primoris Services Corporation generates weak or negative free cash flow of $164.99M, restricting financial flexibility.
FCF Per Share
Each share generates $3.04 in free cash annually.
FCF Yield
PRIM converts 2.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How PRIM Stacks Against Its Sector Peers
| Metric | PRIM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.16 | 25.95 | Better (Cheaper) |
| ROE | 15.21% | 1244.00% | Weak |
| Net Margin | 3.31% | -35124.00% (disorted) | Weak |
| Debt/Equity | 0.55 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.28 | 10.01 | Neutral |
| ROA | 5.89% | -1492364.00% (disorted) | Weak |
PRIM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Primoris Services Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
94.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
134.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
34.89%
Industry Style: Cyclical, Value, Infrastructure
High Growth