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Primoris Services (PRIM)
:PRIM
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Primoris Services
(NYSE:PRIM)76Outperform
Primoris Services (PRIM) vs. S&P 500 (SPY)
Market Cap
$3.59B
Dividend Yield0.38%
Average Volume (3M)1.01M
Price to Earnings (P/E)20.1
Beta (1Y)1.68
Revenue Growth11.40%
EPS Growth42.51%
CountryUS
Employees14,058
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)3.31
Shares Outstanding53,747,627
10 Day Avg. Volume1,430,888
30 Day Avg. Volume1,012,654
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)N/A
Price to Sales (P/S)0.58
Price to Cash Flow (P/CF)3.10
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$95.00Price Target Upside42.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Primoris Services Business Overview & Revenue Model
Company DescriptionPrimoris Services Corp. is a holding company, which engages in the provision of construction, fabrication, maintenance, replacement, and engineering services. It operates through the following segments: Power, Pipeline, Utilities, Transmission, and Civil. The Power segment comprises full engineering, procurement, and construction project delivery; turnkey construction; retrofits; upgrades; repairs; outages; and maintenance petroleum, petrochemical, water, and other industries. The Pipeline segment includes pipeline construction and maintenance, facility work, compressor stations, pump stations, metering facilities, and other pipeline related services for petroleum and petrochemical industries. The Utilities segment involves in the utility line installation and maintenance, gas and electric distribution, streetlight construction, substation work, and fiber optic cable installation. The Transmission segment specializes in electric and gas transmission and distribution, including comprehensive engineering, procurement, maintenance and construction, repair, and restoration of utility infrastructure. The Civil segment consists of highway and bridge construction, airport runway and taxiway construction, demolition, heavy earthwork, soil stabilization, mass excavation, and drainage projects. The company was founded by Brian Patt in 2004 and is headquartered in Dallas, TX.
How the Company Makes MoneyPrimoris Services Corporation generates revenue through its diverse portfolio of services which are primarily divided into three key segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment focuses on electric and gas utility services, including distribution and transmission infrastructure. The Energy/Renewables segment involves the construction and maintenance of power plants, solar installations, and other renewable energy projects. The Pipeline Services segment offers construction and maintenance services for pipeline infrastructure. The company earns money by securing contracts with government entities, utilities, and private companies, often through competitive bidding processes. Long-term maintenance contracts and strategic partnerships with major energy companies also contribute significantly to its earnings.
Primoris Services Financial Statement Overview
Summary
Primoris Services demonstrates strong financial health with consistent revenue growth and efficient operational management. The balance sheet is stable with a balanced approach to leverage, and cash flow management is robust, supporting future investments. However, the increase in debt requires monitoring.Income Statement
Primoris Services has shown a consistent increase in revenue, with a revenue growth rate of approximately 11.4% from 2023 to 2024. The company maintains a healthy gross profit margin of 11.04% and a net profit margin of 2.84% for 2024. The EBIT margin stands at 4.99%, reflecting effective cost management. However, the EBITDA margin remains consistent with EBIT, indicating no additional significant non-operating income or expenses.85
Very Positive
Balance Sheet
The company has a moderate debt-to-equity ratio of 0.29 in 2024, indicating a balanced use of leverage. Return on Equity (ROE) is at 12.83%, showing efficient use of equity capital. The equity ratio is robust at 33.6%, suggesting a stable financial position and sufficient asset coverage. However, the increase in total debt from previous years should be monitored for potential risks.78
Positive
Cash Flow
Primoris Services demonstrates strong cash flow management with a significant increase in operating cash flow in 2024. The free cash flow to net income ratio of 2.11 indicates efficient conversion of net income into cash flow, supporting future investments and debt servicing. The operating cash flow to net income ratio of 2.81 underscores strong operational efficiency.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.37B | 5.72B | 4.42B | 3.50B | 3.49B | Gross Profit |
| 703.25M | 587.49M | 456.88M | 416.66M | 370.21M | EBIT |
| 317.45M | 253.07M | 195.34M | 170.15M | 163.95M | EBITDA |
| 317.45M | 362.88M | 301.73M | 276.75M | 242.23M | Net Income Common Stockholders |
| 180.89M | 126.14M | 133.02M | 115.74M | 104.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 455.82M | 217.78M | 248.69M | 200.51M | 326.74M | Total Assets |
| 4.20B | 3.83B | 3.54B | 2.54B | 1.97B | Total Debt |
| 408.00M | 1.32B | 1.27B | 759.52M | 454.47M | Net Debt |
| -47.82M | 1.10B | 1.03B | 559.01M | 127.73M | Total Liabilities |
| 2.79B | 2.59B | 2.44B | 1.55B | 1.25B | Stockholders Equity |
| 1.41B | 1.24B | 1.11B | 990.05M | 714.75M |
| Cash Flow | Free Cash Flow | |||
| 381.76M | 95.55M | -11.34M | -54.09M | 247.57M | Operating Cash Flow |
| 508.31M | 198.55M | 83.35M | 79.75M | 311.93M | Investing Cash Flow |
| -27.23M | -30.01M | -481.94M | -691.27M | -42.51M | Financing Cash Flow |
| -244.36M | -205.28M | 452.04M | 485.73M | -62.82M |
Primoris Services Technical Analysis
Negative
66.76
Price Trends
76.93
Negative
75.14
Negative
64.26
Positive
Market Momentum
-2.52
Positive
38.05
Neutral
51.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Negative. The current price of 66.76 is below the 20-day moving average (MA) of 72.74, below the 50-day MA of 76.93, and above the 200-day MA of 64.26, indicating a neutral trend. The MACD of -2.52 indicates Positive momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 51.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRIM.
Primoris Services Risk Analysis
Primoris Services disclosed 42 risk factors in its most recent earnings report. Primoris Services reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primoris Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.99B | 18.39 | 34.28% | 0.25% | 15.76% | 61.64% | |
76 Outperform | $3.59B | 20.14 | 13.67% | 0.38% | 11.40% | 42.51% | |
74 Outperform | $9.82B | 60.29 | 5.59% | ― | 2.56% | ― | |
72 Outperform | $36.99B | 41.40 | 12.36% | 0.15% | 13.36% | 20.00% | |
66 Neutral | $6.06B | 2.94 | 54.32% | ― | 5.43% | 2094.12% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
61 Neutral | $4.78B | 20.34 | 18.84% | ― | 12.61% | 7.43% |
* Industrials Sector Average
Performance Comparison
PRIM
Primoris Services
66.76
27.10
68.33%
DY
Dycom
153.05
18.50
13.75%
EME
EMCOR Group
388.08
63.14
19.43%
FLR
Fluor
35.93
-0.75
-2.04%
MTZ
MasTec
123.89
35.27
39.80%
PWR
Quanta Services
249.63
8.15
3.38%
Primoris Services Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: 3.79% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a record-breaking year for Primoris with significant achievements in revenue, backlog, and cash flow. While there were challenges in the energy segment and pipeline activity, the overall outlook for 2025 remains positive with strong growth expected in utilities, renewables, and other strategic areas.Highlights
Record-Breaking Year
Primoris had its best year in company history for revenue, earnings, backlog, and cash flow from operations. Total backlog reached $11.9 billion, with more than $7.7 billion of new work booked during the year.
Strong Cash Flow
Record cash flow from operations exceeded $500 million, driven by improvements in contract assets and upfront procurement and mobilization payments.
Utilities Segment Performance
Utilities segment revenue grew, with significant margin improvements, driven by favorable weather, increased customer activity, and $9 million from storm restoration work. Gross margins improved to 12.1% from 7.4% in the prior year.
Renewables Growth
Renewables business approached $2 billion in revenue in 2024 with nearly $900 million booked in the fourth quarter, closing the year with approximately $3.1 billion in backlog.
Earnings Guidance for 2025
Primoris expects earnings per fully diluted share to be between $3.70 and $3.90, with adjusted EPS between $4.20 and $4.40, both representing double-digit percent growth from 2024.
Lowlights
Energy Segment Challenges
Energy segment gross profit decreased by $9.5 million or 8% compared to the prior year, with gross margins falling to 9.5% due to fewer project closeouts in renewables and weather impacts.
Pipeline Activity Decline
Pipeline activity remained slow and competitive, with a lower year in pipeline activity anticipated. Gross margins were impacted by challenges in pipeline projects.
Impact of Regulatory Environment
Uncertainty in renewables and other parts of the business due to rapidly changing trade and regulatory environment, including tariffs on key electrical components.
Company Guidance
During the Primoris Services Corporation fourth quarter and full year 2024 earnings call, the company provided strong guidance for 2025, reflecting its robust performance in 2024. The company achieved record revenue, earnings, backlog, and cash flow from operations, with total backlog reaching $11.9 billion, driven by $7.7 billion in new bookings. For 2025, Primoris expects earnings per fully diluted share to be between $3.70 and $3.90, and adjusted EPS between $4.20 and $4.40, representing double-digit growth at the midpoint. Adjusted EBITDA is projected to range from $440 million to $460 million. The Utilities segment showed improved margins with a target of 9% to 11% for 2025, while the Energy segment anticipates gross margins between 10% and 12%. Operating cash flow for 2025 is expected to normalize to $200 million to $225 million, following a record $508 million in 2024. The company also continued its strategic focus on renewables, with a strong backlog in solar and related services, and aims for further margin improvements through operational efficiencies and strategic resource allocation.Primoris Services Corporate Events
Executive/Board Changes
Primoris Services Promotes Jeremy Kinch to Key Officer Role
Positive
Jan 8, 2025
Primoris Services has promoted Jeremy Kinch to the position of Chief Operations Support Officer, highlighting his extensive experience in the infrastructure construction sector. Alongside this promotion, an amended employment agreement was established, offering incentives such as a base salary, bonuses, and severance benefits, emphasizing the company’s commitment to retaining skilled leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.