Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
I've been keeping an eye on Primoris Services Corporation (NASDAQ:PRIM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PRIM has a lot to offer. Basically, it is a financially-robust company with an impressive history and an optimistic growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Primoris Services here.
Good value with reasonable growth potential and pays a dividend
In the previous year, PRIM has ramped up its bottom line by 7.1%, with its latest earnings level surpassing its average level over the last five years. Not only did PRIM outperformed its past performance, its growth also surpassed the Construction industry expansion, which generated a -0.1% earnings growth. This is an notable feat for the company.
PRIM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that PRIM manages its cash and cost levels well, which is a crucial insight into the health of the company. PRIM seems to have put its debt to good use, generating operating cash levels of 0.34x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Primoris Services, I've put together three essential aspects you should further examine:
- Valuation: What is PRIM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PRIM is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does PRIM return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from PRIM as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PRIM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.