Primoris Services Corp

PRIM

Water, Sewer, Pipeline, Comm & Power Line Construction

Mkt Cap

$2.933B

PE

20.40

Debt

$1.047B

Cash

$183.8M

EV

$3.797B

FCF

$185.8M

Market Cap

$2.933B

P/E Ratio

20.40

Debt

$1.047B

Cash

$183.8M

EV

$3.797B

FCF

$185.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":63156000},{"time":"2015-12-30","value":36872000},{"time":"2016-12-30","value":26723000},{"time":"2017-12-30","value":72354000},{"time":"2018-12-30","value":77461000},{"time":"2019-12-30","value":82327000},{"time":"2020-12-30","value":104974000},{"time":"2021-12-30","value":115611000},{"time":"2022-12-30","value":133021000},{"time":"2023-12-30","value":126145000}],"Sales":[{"time":"2014-12-30","value":2086194000},{"time":"2015-12-30","value":1929415000},{"time":"2016-12-30","value":1996948000},{"time":"2017-12-30","value":2379995000},{"time":"2018-12-30","value":2939478000},{"time":"2019-12-30","value":3106329000},{"time":"2020-12-30","value":3491497000},{"time":"2021-12-30","value":3497632000},{"time":"2022-12-30","value":4420599000},{"time":"2023-12-30","value":5715309000}],"Net Margins":[{"time":"2014-12-30","value":0.0302733111110472},{"time":"2015-12-30","value":0.0191104557599065},{"time":"2016-12-30","value":0.013381920811157827},{"time":"2017-12-30","value":0.03040090420358026},{"time":"2018-12-30","value":0.02635195772854908},{"time":"2019-12-30","value":0.026502987932057423},{"time":"2020-12-30","value":0.0300656136894862},{"time":"2021-12-30","value":0.03305407773030439},{"time":"2022-12-30","value":0.030091170902404856},{"time":"2023-12-30","value":0.022071422560005067}],"Assets":[{"time":"2014-12-30","value":1111187000},{"time":"2015-12-30","value":1132254000},{"time":"2016-12-30","value":1170798000},{"time":"2017-12-30","value":1255740000},{"time":"2018-12-30","value":1594147000},{"time":"2019-12-30","value":1830465000},{"time":"2020-12-30","value":1969580000},{"time":"2021-12-30","value":2543327000},{"time":"2022-12-30","value":3544020000},{"time":"2023-12-30","value":3827427000}],"Stockholders Equity":[{"time":"2014-12-30","value":453786000},{"time":"2015-12-30","value":483465000},{"time":"2016-12-30","value":498570000},{"time":"2017-12-30","value":562183000},{"time":"2018-12-30","value":606983000},{"time":"2019-12-30","value":629530000},{"time":"2020-12-30","value":714792000},{"time":"2021-12-30","value":990055000},{"time":"2022-12-30","value":1108838000},{"time":"2023-12-30","value":1236092000}],"ROE":[{"time":"2014-12-30","value":0.13917573481773346},{"time":"2015-12-30","value":0.07626612060852389},{"time":"2016-12-30","value":0.05359929398078504},{"time":"2017-12-30","value":0.12870186398379174},{"time":"2018-12-30","value":0.12761642418321437},{"time":"2019-12-30","value":0.1307753403332645},{"time":"2020-12-30","value":0.14685950598215985},{"time":"2021-12-30","value":0.1167723005287585},{"time":"2022-12-30","value":0.11996432301201798},{"time":"2023-12-30","value":0.10205146542490365}],"ROA":[{"time":"2014-12-30","value":0.09340642034149067},{"time":"2015-12-30","value":0.05985317782052437},{"time":"2016-12-30","value":0.04932447783477594},{"time":"2017-12-30","value":0.08464172519789129},{"time":"2018-12-30","value":0.0818437697401808},{"time":"2019-12-30","value":0.07696131857205683},{"time":"2020-12-30","value":0.08324058936422994},{"time":"2021-12-30","value":0.06690095296436518},{"time":"2022-12-30","value":0.055117634776327445},{"time":"2023-12-30","value":0.06612092144409286}]}

Primoris Services Corporation, a specialty contractor company, provides a range of specialty construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction and maintenance, carbon capture and storage services; pipeline facility and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Primoris Services Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$185.8M	$207.6M	$230.3M	$253.9M	$277.9M	$302.2M	$326.3M	$349.9M	$372.6M	$394M	$413.7M	$4.137B
DCF		$180.5M	$174.2M	$166.9M	$158.9M	$150.2M	$141.1M	$131.5M	$121.8M	$112M	$102.3M	$1.023B
Value	$2.462B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 20%

Earnings Stability 86%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	1.9%	1.3%	3%	2.6%	2.7%	3%	3.3%	3%	2.2%	2.4%
ROA	6%	4.9%	8.5%	8.2%	7.7%	8.3%	6.7%	5.5%	6.6%	7%
ROE	7.6%	5.4%	13%	13%	13%	15%	12%	12%	10%	12%

What is the average Net Margin?

The average Net Margin over the past 5 years is +2.8%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.02%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.17%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.46%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +12.4%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.54%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-17.56	70.28	2.97	25.96	17.36	1.47	-13.55	-108.42	10.86	5.64
Debt Equity	0.68	0.64	0.58	0.71	0.65	0.51	0.74	1.11	0.84	0.84
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.64.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -13.37.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	16%	14%	18%	29%	2.8%
Net Income	25%	10%	6.3%	-5.2%	-0.45%
Stockholders Equity	14%	15%	20%	11%	1.7%
FCF	54%	42%	-27%	-	-390%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +14.22%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.78%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +10.24%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.45%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +15.29%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.72%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +41.87%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -390.91%.