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Primoris Services (FRA:1PM) Gross Margin % : 12.04% (As of Sep. 2024)


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What is Primoris Services Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Primoris Services's Gross Profit for the three months ended in Sep. 2024 was €179 Mil. Primoris Services's Revenue for the three months ended in Sep. 2024 was €1,486 Mil. Therefore, Primoris Services's Gross Margin % for the quarter that ended in Sep. 2024 was 12.04%.


The historical rank and industry rank for Primoris Services's Gross Margin % or its related term are showing as below:

FRA:1PM' s Gross Margin % Range Over the Past 10 Years
Min: 10.08   Med: 10.87   Max: 11.91
Current: 11


During the past 13 years, the highest Gross Margin % of Primoris Services was 11.91%. The lowest was 10.08%. And the median was 10.87%.

FRA:1PM's Gross Margin % is ranked worse than
74.7% of 1664 companies
in the Construction industry
Industry Median: 20.015 vs FRA:1PM: 11.00

Primoris Services had a gross margin of 12.04% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Primoris Services was -1.00% per year.


Primoris Services Gross Margin % Historical Data

The historical data trend for Primoris Services's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Primoris Services Gross Margin % Chart

Primoris Services Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.65 10.60 11.91 10.34 10.28

Primoris Services Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.37 10.33 9.44 11.94 12.04

Competitive Comparison of Primoris Services's Gross Margin %

For the Engineering & Construction subindustry, Primoris Services's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Primoris Services's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Primoris Services's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Primoris Services's Gross Margin % falls into.



Primoris Services Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Primoris Services's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=538.7 / 5240.938
=(Revenue - Cost of Goods Sold) / Revenue
=(5240.938 - 4702.209) / 5240.938
=10.28 %

Primoris Services's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=178.9 / 1485.826
=(Revenue - Cost of Goods Sold) / Revenue
=(1485.826 - 1306.923) / 1485.826
=12.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Primoris Services  (FRA:1PM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Primoris Services had a gross margin of 12.04% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Primoris Services Gross Margin % Related Terms

Thank you for viewing the detailed overview of Primoris Services's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Primoris Services Business Description

Traded in Other Exchanges
Address
2300 N. Field Street, Suite 1900, Dallas, TX, USA, 75201
Primoris Services Corp is a provider of infrastructure services operating mainly in the United States and Canada. It provides a wide range of construction services, maintenance, replacement, fabrication and engineering services to a diversified base of customers. The reportable segments are Utilities segment and the Energy segment. The Utilities segment operates in a range of services, including the installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communication systems. The Energy segment operates in a range of services that include engineering, procurement, and construction, retrofits, highway and bridge construction, demolition, site work, outages, pipeline construction and maintenance and others.

Primoris Services Headlines

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