Water, Sewer, Pipeline, Comm & Power Line Construction
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.
Discounted Cash Flow Valuation of Primoris Services Corp
In the chart Earnings are multiplied by this value.
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 average Net Margin over the past 5 years is +2.94%.
The trend of Net Margin over the past 5 years is +0.06%.
The average ROA over the past 5 years is +7.48%.
The trend of ROA over the past 5 years is -0.53%.
The average ROE over the past 5 years is +12.84%.
The trend of ROE over the past 5 years is -0.17%.
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 Debt/FCF trailing twelve month is 15.52.
The trend of Debt/FCF over the past 5 years is -19.75.
Graham’s Stability measure stands at 0.47.
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.
The Revenue CAGR over the past 5 years is +13.18%.
The trend of Revenue growth rate over the past 5 years is +1.73%.
The Earnings CAGR over the past 5 years is +12.95%.
The trend of Earnings growth rate over the past 5 years is +3.31%.
The Equity CAGR over the past 5 years is +14.55%.
The trend of Equity growth rate over the past 5 years is +1.67%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -390.91%.