PRIM Primoris Services

Primoris Services Corporation is a specialty contractor providing construction, engineering, and maintenance services for the utilities, energy, and industrial sectors across North America. Sector: Industrials.

Primoris Services (PRIM) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 10.84%, WACC is 11.21%, and the economic spread is -0.38%. On balance, the company is currently generating returns below their cost of capital, which may weigh on intrinsic value over time. Supporting metrics show ROE at 15.71% and ROA at 5.57%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

Valuation currently screens at trailing P/E of 24.26, forward P/E of 21.84, PEG of 1.68. Trailing and forward P/E are close together, implying the market does not expect a significant change in the earnings trajectory over the near term. Growth-adjusted valuation is in a reasonable range, with the multiple broadly in line with expected earnings expansion. At 1.28, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

On the margin front: gross margin sits at 10.38%, operating margin at 4.96%, and free cash flow margin at 2.20%. At this gross margin level, the company has little buffer at the production layer against cost increases. The operating margin reading is weak, suggesting cost structures are outpacing revenue generation across much of the company. Weak free cash flow margins point to the company where near-term cash generation is constrained by investment or operational cash demands. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

The two main inputs to the near-term picture — TTM revenue growth of 18.97% reflecting consistent if unspectacular revenue expansion. Forecasted EPS growth of 11.1% over the next year is supportive of the current valuation, suggesting the market is not paying for earnings that won't arrive. Analyst price targets suggest street expectations point to meaningful upside if execution holds on a 12-month view. Revenue momentum establishes the baseline; analyst price targets reveal how much the market is already paying for future execution on top of that baseline. Delivered returns will ultimately be shaped by the gap — or lack thereof — between operating execution and the expectations embedded in current prices. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite picture leans positive, with capital efficiency and growth momentum providing the core of the investment thesis.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.