PRIM

Primoris Services Corp

Industrial/Transportation, Energy, Utilities


Presented:11/14/2023
Price:$31.38
Cap:$1.67B
Current Price:$60.76
Cap:$3.26B

Presented

Date11/14/2023
Price$31.38
Market Cap$1.67B
Ent Value$3.02B
P/E Ratio13.07x
Book Value$22.43
Div Yield0.76%
Shares O/S53.36M
Ave Daily Vol373,462
Short Int1.13%

Current

Price$60.76
Market Cap$3.26B
Primoris Services Corp. operates as a holding company, which engages in the provision of construction, fabrication, maintenance, replacement, and engineering services. It operates through the following segments: Utilities, Energy and Renewables, and Pipeline. The Utilities segment specializes in a range of services, including telecommunications and installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems. The Energy and Renewables segment is involved in engineering, procurement, and construction, retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services for entities in the renewable energy and energy storage, renewable fuels, and petroleum and petrochemical industries, as well as state departments of transportation. The Pipeline segment offers pipeline construction and maintenance, 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 by Brian Patt in 2004 and is headquartered in Dallas, TX.

Publicly traded companies mentioned herein: MasTec, Inc, (MTZ), Primoris Services Corp (PRIM), Quanta Services, Inc. (PWR)

Highlights

The presenter is long shares of Primoris Services Corp (PRIM) driven by strong growth prospects in the burgeoning renewable energy market which makes up 25% of the company’s revenue currently. The surge in Primoris' renewables arm, which is mainly made up of solar energy projects, and new management makes for an promising setup going forward. As management executes on margin expansion and the company benefits from double-digit growth in its energy segment, the presenter sees the stock rerating more in line with peers for a near double in the stock. 

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Idea Discussion

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