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PRIM (Primoris Services) Financial Strength : 7 (As of Mar. 2025)


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What is Primoris Services Financial Strength?

Primoris Services has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Primoris Services's Interest Coverage for the quarter that ended in Mar. 2025 was 9.14. Primoris Services's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.16. As of today, Primoris Services's Altman Z-Score is 3.36.


Competitive Comparison of Primoris Services's Financial Strength

For the Engineering & Construction subindustry, Primoris Services's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Primoris Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where Primoris Services's Financial Strength falls into.


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Primoris Services Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Primoris Services's Interest Expense for the months ended in Mar. 2025 was $-8 Mil. Its Operating Income for the months ended in Mar. 2025 was $71 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $864 Mil.

Primoris Services's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*71.156/-7.789
=9.14

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Primoris Services's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(194.877 + 864.329) / 6592.448
=0.16

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Primoris Services has a Z-score of 3.36, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.36 is strong.

* 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.


Primoris Services  (NYSE:PRIM) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Primoris Services has the Financial Strength Rank of 7.


Primoris Services Financial Strength Related Terms

Thank you for viewing the detailed overview of Primoris Services's Financial Strength 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 the 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.
Executives
Thomas Edward Mccormick officer: Chief Operating Officer 2100 MCKINNEY AVE, SUITE 1500, DALLAS TX 75201
Stephen C. Cook director 7500 SAN FELIPE, STE. 600, HOUSTON TX 77063
Travis L Stricker officer: Chief Accounting Officer 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
David Lee King officer: Chief Operating Officer 2100 MCKINNEY AVE, SUITE 1500, DALLAS TX 75201
John Schauerman director, officer: Chief Financial Officer, other: Member - see remark 26000 COMMERCENTRE DR., LAKE FOREST CA 92630
John M. Perisich officer: Senior VP and General Counsel, other: Member - see remark 26000 COMMERCENTRE DR., LAKE FOREST CA 92630
Carla S Mashinski director 8200 S. UNIT DRIVE, TULSA OK 74132
Moreno John F Jr officer: Chief Operating Officer C/O PRIMORIS SERVICES CORPORATION, 2300 NORTH FIELD ST, SUITE 1900, DALLAS TX 75201
Michael E. Ching director C/O PRIMORIS SERVICES CORPORATION, 2300 N FIELD STREET, SUITE 1900, DALLAS TX 75201
Terry D Mccallister director 1100 H ST NW, WASHINGTON DC 20080
Jose Ramon Rodriguez director PRIMORIS SERVICES CORPORATION, 2300 NORTH FIELD STREET, SUITE 1900, DALLAS TX 75201
Thomas E. Tucker director 3 UPPER NEWPORT PLAZA DRIVE, NEWPORT BEACH CA 92660
Patricia K Wagner director 1720 NORTH FIRST STREET, SAN JOSE CA 95020
Kenneth Morris Dodgen officer: Corporate Controller 2100 MCKINNEY AVE, SUITE 1500, DALLAS TX 75201
Brian Pratt director, 10 percent owner, officer: Chairman, CEO & President, other: Member - see remark 5950 BERKSHIRE LANE, SUITE 800, DALLAS TX 75225