Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $7.74B
• Dividend Yield: 0.23%
• Average Volume (3M): 775.46K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 1.80
• Revenue Growth: 15.08%
• EPS Growth: 55.10%
• Country: US
• Employees: 15,716
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.88
• Shares Outstanding: 54,012,787
• 10 Day Avg. Volume: 723,044
• 30 Day Avg. Volume: 775,463
• PEG Ratio: 0.54
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 10.73
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $156.88
• Price Target Upside: 9.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: $154.00 ▲(7.49% Upside)

Primoris Services' overall stock score is driven by its strong financial performance and positive earnings call sentiment, indicating robust growth and profitability. However, the stock's high valuation and overbought technical indicators suggest caution. The company's stable financial foundation and promising future opportunities in key segments support a positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand in key segments, enhancing Primoris's market position and supporting future expansion.

Strong Backlog

A robust backlog ensures a steady pipeline of projects, providing revenue visibility and stability, which supports long-term business sustainability.

Improved Financial Stability

Improved leverage ratios reflect better financial health and lower risk, enhancing Primoris's ability to invest in growth and weather economic fluctuations.

Negative Factors

Decreased Margins in Energy Segment

Decreasing margins in a key segment can impact overall profitability, suggesting potential challenges in cost management and competitive pressures.

Lower Pipeline Activity

Reduced pipeline activity may indicate sector-specific challenges or competitive pressures, potentially affecting future revenue streams.

Challenges in Energy Segment

Higher costs in renewables projects could signal operational inefficiencies or market challenges, impacting long-term profitability in the segment.

Primoris Services Business Overview & Revenue Model

Company Description

Primoris Services Corporation, a specialty contractor company, provides a range of 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, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, 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.

How the Company Makes Money

Primoris Services generates revenue through a variety of contracting services, with key revenue streams coming from its pipeline and utility construction services, as well as maintenance and repair services for various infrastructure projects. The company's revenue model is based on project-specific contracts, which can be fixed-price or cost-plus arrangements, allowing for flexibility depending on the project scope and client needs. Additionally, Primoris often enters into long-term contracts with major clients, providing a steady stream of income. Strategic partnerships with energy and utility companies further enhance its revenue potential, as these collaborations often lead to large-scale projects that require specialized expertise and resources.

Primoris Services Financial Statement Overview

Summary

Primoris Services demonstrates strong financial performance with consistent revenue growth, improved profitability, reduced leverage, and robust cash generation. The income statement, balance sheet, and cash flow statement all indicate a stable financial foundation, positioning the company well for future growth.

Income Statement

Primoris Services has demonstrated consistent revenue growth, with a 4.95% increase in the TTM period. The gross profit margin has remained stable, and the net profit margin has improved to 3.48% in the TTM, indicating enhanced profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations. Overall, the income statement shows strong growth and profitability trends.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.70 in the TTM, indicating better leverage management. Return on equity has increased to 16.77%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. The balance sheet reflects improved financial stability and reduced leverage risks.

Cash Flow

Free cash flow has grown by 11.98% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.33, indicating good cash conversion. The free cash flow to net income ratio of 0.75 suggests efficient cash utilization. Overall, the cash flow statement shows robust cash generation and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.46B	6.37B	5.72B	4.42B	3.50B	3.49B
Gross Profit	822.71M	703.25M	587.49M	456.88M	416.66M	370.21M
EBITDA	400.90M	413.99M	362.88M	297.65M	275.91M	248.06M
Net Income	277.14M	180.89M	126.14M	133.02M	115.74M	104.98M
Balance Sheet
Total Assets	4.65B	4.20B	3.83B	3.54B	2.54B	1.97B
Cash, Cash Equivalents and Short-Term Investments	431.42M	455.82M	217.78M	248.69M	200.51M	326.74M
Total Debt	393.03M	1.19B	1.32B	1.35B	821.11M	527.50M
Total Liabilities	3.02B	2.79B	2.59B	2.44B	1.55B	1.25B
Stockholders Equity	1.63B	1.41B	1.24B	1.11B	990.05M	714.75M
Cash Flow
Free Cash Flow	489.40M	381.76M	95.55M	-11.34M	-54.09M	247.57M
Operating Cash Flow	625.78M	508.31M	198.55M	83.35M	79.75M	311.93M
Investing Cash Flow	-104.55M	-27.23M	-30.01M	-481.94M	-691.27M	-42.51M
Financing Cash Flow	-444.94M	-244.36M	-205.28M	452.04M	485.73M	-62.82M

Primoris Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Positive. The current price of 143.27 is above the 20-day moving average (MA) of 138.83, above the 50-day MA of 130.54, and above the 200-day MA of 89.62, indicating a bullish trend. The MACD of 3.34 indicates Positive momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 78.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRIM.

Primoris Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRL	―	$11.95B	42.70	36.72%	―	3.31%	76.94%
IESC	―	$7.85B	32.14	36.85%	―	17.83%	34.73%
FLR	―	$7.77B	1.98	102.24%	―	3.62%	943.43%
PRIM	―	$7.74B	32.54	17.01%	0.23%	15.08%	55.10%
GVA	―	$4.49B	34.28	15.89%	0.51%	7.18%	77.84%
KBR	―	$5.44B	13.92	27.77%	1.55%	9.66%	29.01%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Primoris Services Corporate Events

Primoris Services Declares Cash Dividend for Shareholders

On July 30, 2025, Primoris Services‘ Board of Directors announced a cash dividend of $0.08 per share for stockholders recorded by September 30, 2025. This dividend will be payable on or about October 15, 2025, reflecting the company’s ongoing commitment to providing returns to its shareholders.