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Primoris Services (NYSE:PRIM) Has A Pretty Healthy Balance Sheet

Primoris Services (NYSE:PRIM) Has A Pretty Healthy Balance Sheet

primoris services(紐交所:PRIM)具有相當健康的資產負債表
Simply Wall St ·  11/11 20:40

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that Primoris Services Corporation (NYSE:PRIM) does use debt in its business. But the more important question is: how much risk is that debt creating?

一些人認爲,作爲投資者,最好的風險思考方式是波動性,而不是債務,但禾倫·巴菲特曾經說過:「波動性與風險遠非同義詞」。因此,當你考慮任何一支股票有多大風險時,考慮債務是很明顯的,因爲過多的債務可能會拖垮一家公司。我們可以看到Primoris Services Corporation(紐交所:PRIM)在業務中使用了債務。但更重要的問題是:這些債務造成了多大的風險呢?

When Is Debt Dangerous?

債務何時有危險?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.

債務在企業面臨新資本或自由現金流難以償還時起到了幫助作用。資本主義的組成部分是「創造性破壞」過程,在這個過程中,銀行家無情地清算破產的企業。雖然這並不太常見,但我們經常看到企業因負債而永久地稀釋股東的權益,因爲債權人強迫它們以困境價格籌集資本。話雖如此,最常見的情況是,企業合理地管理其債務——並利用它們的優勢。當我們審查債務水平時,我們首先考慮現金和債務水平。

What Is Primoris Services's Debt?

Primoris Services的債務是什麼?

As you can see below, Primoris Services had US$903.7m of debt at September 2024, down from US$1.10b a year prior. However, because it has a cash reserve of US$353.1m, its net debt is less, at about US$550.7m.

正如下文所示,Primoris Services在2024年9月的債務爲90370萬美元,比前一年的11億美元減少。然而,由於公司擁有35310萬美元的現金儲備,其淨債務更少,約爲55070萬美元左右。

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NYSE:PRIM Debt to Equity History November 11th 2024
紐交所:PRIm債務資產比歷史數據於2024年11月11日

How Healthy Is Primoris Services' Balance Sheet?

primoris services的資產負債表有多健康?

We can see from the most recent balance sheet that Primoris Services had liabilities of US$1.61b falling due within a year, and liabilities of US$1.27b due beyond that. On the other hand, it had cash of US$353.1m and US$1.70b worth of receivables due within a year. So its liabilities total US$827.2m more than the combination of its cash and short-term receivables.

從最近的資產負債表可以看出,primoris services有16.1億美元的短期應付債務,12.7億美元的長期應付債務。另一方面,它有35310萬美元的現金和17億美元的短期應收賬款。所以,其負債總額比現金和短期應收賬款的組合多82720萬美元。

Since publicly traded Primoris Services shares are worth a total of US$4.39b, it seems unlikely that this level of liabilities would be a major threat. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.

由於公開交易的primoris services股票總值爲43.9億美元,看起來這種負債水平不太可能構成重大威脅。然而,我們認爲值得關注其資產負債表強度,因爲隨着時間的推移可能會發生變化。

We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).

我們使用兩個主要比率來了解債務相對於收入的水平。首先是淨債務除以利息、稅項、折舊和攤銷前利潤(EBITDA),而第二個是其稅前利潤(EBIT)可以覆蓋利息支出的倍數(或簡稱爲利息覆蓋率)。 這種方法的優勢在於我們既考慮了債務的絕對量(淨債務與EBITDA)又考慮了與該債務相關的實際利息支出(利息覆蓋比)。

While Primoris Services's low debt to EBITDA ratio of 1.4 suggests only modest use of debt, the fact that EBIT only covered the interest expense by 4.1 times last year does give us pause. So we'd recommend keeping a close eye on the impact financing costs are having on the business. Also relevant is that Primoris Services has grown its EBIT by a very respectable 25% in the last year, thus enhancing its ability to pay down debt. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Primoris Services's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

儘管primoris services低的負債/EBITDA比率爲1.4表明只是適度使用債務,但去年EBIt僅覆蓋利息支出的4.1倍讓我們產生疑慮。因此,我們建議密切關注融資成本對業務的影響。與此相關的是,primoris services去年的EBIt增長了25%,從而增強了償還債務的能力。在分析債務水平時,資產負債表是明顯的起點。但最重要的是未來的盈利,將決定primoris services維持健康資產負債表的能力。所以如果您專注於未來,您可以查看這份顯示分析師利潤預測的免費報告。

Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. In the last three years, Primoris Services's free cash flow amounted to 32% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.

最後,儘管稅收人員可能喜歡會計利潤,但貸款人只接受堅硬的現金。所以我們總是檢查多少EBIt被轉化爲自由現金流。在過去三年中,primoris services的自由現金流佔其EBIt的32%,低於預期。在償還債務方面,情況並不樂觀。

Our View

我們的觀點

When it comes to the balance sheet, the standout positive for Primoris Services was the fact that it seems able to grow its EBIT confidently. However, our other observations weren't so heartening. For example, its interest cover makes us a little nervous about its debt. When we consider all the elements mentioned above, it seems to us that Primoris Services is managing its debt quite well. Having said that, the load is sufficiently heavy that we would recommend any shareholders keep a close eye on it. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Primoris Services is showing 2 warning signs in our investment analysis , you should know about...

當涉及資產負債表時,primoris services最突出的優點是它似乎能夠自信地增長其EBIt。然而,我們的其他觀察並不那麼令人振奮。例如,其利息盈利覆蓋率讓我們對其債務有些緊張。當我們考慮以上提到的所有要素時,primoris services似乎在管理其債務方面做得相當不錯。話雖如此,負擔相當沉重,我們建議股東們密切關注。毫無疑問,我們從資產負債表中了解最多關於債務的信息。但最終,每家公司都可能存在超出資產負債表之外的風險。請注意,我們的投資分析顯示primoris services有2個警示信號,你應該知道...。

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

如果在所有這些之後,您更感興趣的是具有堅實資產負債表的快速增長公司,那麼不要拖延,查看我們的淨現金增長股票列表。

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Simply Wall St的這篇文章是一般性質的。我們僅基於歷史數據和分析師預測提供評論,使用公正的方法,我們的文章並非意在提供財務建議。這並不構成買入或賣出任何股票的建議,並且不考慮您的目標或財務狀況。我們旨在爲您帶來基於基礎數據驅動的長期聚焦分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St對提及的任何股票都沒有持倉。

譯文內容由第三人軟體翻譯。


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