PRIM - Primoris Services: Tailwinds From Solar Sales Growth Underappreciated

2024-07-11 01:40:02 ET

Summary

• Primoris Services Corporation is a Dallas-based company providing infrastructure services in the U.S. and Canada, with a focus on the energy business.
• The company's involvement in data centers and renewables sets it apart from competitors, with strong growth potential in solar and grid storage.
• My view is PRIM is undervalued and is worth ~$59/share today with the potential for 24% CAGR to $74/share by FY'26E.
• These imply 13x NOPAT, below the current 17x NOPAT where it trades today, indicating high margin of safety.

Investment Thesis

Based in Dallas, Texas, Primoris Services Corporation ( PRIM ) is in the business of providing infrastructure services. Operating mainly in the U.S. and Canada, the company offers a broad range of construction, replacement, fabrication, and engineering services to a diversified customer base through its two primary segments, (i) utilities and (ii) energy....

For further details see: