Primoris has followed the market’s trajectory closely. The stock is down 15.9% to $52.45 per share over the past six months while the S&P 500 has lost 11%. This might have investors contemplating their next move.
Following the drawdown, is this a buying opportunity for PRIM? Find out in our full research report, it’s free.
Why Does Primoris Spark Debate?
Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Two Positive Attributes:
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Primoris’s sales grew at an incredible 15.4% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers. 
2. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Primoris’s EPS grew at an astounding 18.3% compounded annual growth rate over the last five years, higher than its 15.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
One Reason to be Careful:
Weak Backlog Growth Points to Soft Demand
We can better understand Construction and Maintenance Services companies by analyzing their backlog. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Primoris’s future revenue streams.
Primoris’s backlog came in at $5.20 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 7.2%. This performance slightly lagged the sector and suggests that increasing competition is causing challenges in winning new orders. 
Final Judgment
Primoris’s merits more than compensate for its flaws. With the recent decline, the stock trades at 13.5× forward price-to-earnings (or $52.45 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More Than Primoris
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