Primoris Services Debt
| PRIM Stock | USD 166.53 3.08 1.88% |
Primoris Services holds a debt-to-equity ratio of 0.813. At this time, Primoris Services' Net Debt is very stable compared to the past year. As of the 16th of February 2026, Short and Long Term Debt Total is likely to grow to about 1.4 B, while Short and Long Term Debt is likely to drop about 70.1 M. Primoris Services' financial risk is the risk to Primoris Services stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Primoris Services' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Primoris Services' cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Primoris Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Primoris Services' stakeholders.
For most companies, including Primoris Services, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Primoris Services, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Primoris Services' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At this time, Primoris Services' Total Current Liabilities is very stable compared to the past year. As of the 16th of February 2026, Liabilities And Stockholders Equity is likely to grow to about 5.1 B, while Non Current Liabilities Other is likely to drop about 66.2 M. Check out the analysis of Primoris Services Financial Statements. Primoris Services Bond Ratings
Primoris Services financial ratings play a critical role in determining how much Primoris Services have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Primoris Services' borrowing costs.| Piotroski F Score | 8 | Strong | View |
| Beneish M Score | (2.48) | Unlikely Manipulator | View |
Primoris Services Debt to Cash Allocation
Many companies such as Primoris Services, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Primoris Services currently holds 1.19 B in liabilities with Debt to Equity (D/E) ratio of 0.81, which is about average as compared to similar companies. Primoris Services has a current ratio of 1.45, which is within standard range for the sector. Note, when we think about Primoris Services' use of debt, we should always consider it together with its cash and equity.Primoris Services Total Assets Over Time
Primoris Services Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Primoris Services uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Primoris Services Debt Ratio | 22.0 |
Primoris Services Corporate Bonds Issued
Primoris Services issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Primoris Services uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt.
Primoris Net Debt
Net Debt |
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Understaning Primoris Services Use of Financial Leverage
Leverage ratios show Primoris Services' total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Primoris Services' financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | 844.6 M | 886.8 M | |
| Short and Long Term Debt Total | 1.4 B | 1.4 B | |
| Short Term Debt | 226.2 M | 237.5 M | |
| Long Term Debt | 759.2 M | 414.7 M | |
| Long Term Debt Total | 683.4 M | 717.5 M | |
| Short and Long Term Debt | 85.8 M | 70.1 M | |
| Net Debt To EBITDA | 1.59 | 0.94 | |
| Debt To Equity | 0.76 | 0.62 | |
| Interest Debt Per Share | 21.07 | 22.12 | |
| Debt To Assets | 0.26 | 0.22 | |
| Long Term Debt To Capitalization | 0.29 | 0.26 | |
| Total Debt To Capitalization | 0.41 | 0.34 | |
| Debt Equity Ratio | 0.76 | 0.62 | |
| Debt Ratio | 0.26 | 0.22 | |
| Cash Flow To Debt Ratio | 0.49 | 0.44 |
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Will Construction & Engineering sector continue expanding? Could Primoris diversify its offerings? Factors like these will boost the valuation of Primoris Services. Anticipated expansion of Primoris directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Primoris Services data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.617 | Dividend Share 0.32 | Earnings Share 5.05 | Revenue Per Share | Quarterly Revenue Growth 0.321 |
Primoris Services's market price often diverges from its book value, the accounting figure shown on Primoris's balance sheet. Smart investors calculate Primoris Services' intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Primoris Services' trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Primoris Services' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Primoris Services should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Primoris Services' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.