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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Primoris Services's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was -1.94%.
As of today (2026-08-14), Primoris Services's WACC % is 13.65%. Primoris Services's ROC % is 5.35% (calculated using TTM income statement data).
Primoris Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Primoris Services's WACC % is 13.65%. Primoris Services's ROC % is 5.35% (calculated using TTM income statement data).
Primoris Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Primoris Services ROC % Related Terms
Primoris Services ROC % Historical Data
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The historical data trend for Primoris Services's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (PRIM) has a ROC % of -1.94% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Primoris Services and its competitors.
Is Primoris Services' ROC % too high?
Primoris Services' current ROC % is -1.94%. Overall, Primoris Services has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Primoris Services' ROC % compare to KBR and TPC?
Primoris Services' ROC % of -1.94% can be compared against companies in the Construction industry. The industry median ROC % is 4.75. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Construction company?
The median ROC % among Construction companies is 4.75, based on 1,763 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Primoris Services and its competitors. For the Construction industry, the median ROC % is 4.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Primoris Services's current ROC % is -1.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Primoris Services stock overvalued right now?
Based on GuruFocus' analysis, Primoris Services (PRIM) is currently considered Fairly Valued. The stock's GF Value™ is $80.86, compared to a current price of $83.30 — trading 3% above its estimated fair value. The current ROC % is -1.94%. Primoris Services' overall GF Score™ is 91/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Primoris Services (PRIM), the current ROC % is -1.94% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Primoris Services (PRIM) Overvalued in 2026?
Based on GuruFocus' analysis, Primoris Services stock appears to be overvalued.
The current stock price of $83.30 is trading 3% above its estimated GF Value™ of $80.86.
GuruFocus considers Primoris Services to be Fairly Valued.
Key valuation signals for PRIM:
ROC %: -1.94%
GF Value™: $80.86 vs. price of $83.30 (3% above fair value)
No single metric tells the full story. See the PRIM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Primoris Services Corp is a provider of critical infrastructure services operating mainly in the United States and Canada. The company provides a range of construction, maintenance, replacement, and engineering services. The Utilities segment operates throughout the United States and specializes in a range of services, including the construction and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communications systems. The Energy segment operates throughout the United States and Canada and specializes in a range of services that include engineering, procurement, construction, and maintenance services to various industries. The majority of the company's revenue is derived from the Energy segment.
91GF Score
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