Tutor Perini Intrinsic Value – Tutor Perini Downgraded to Hold Due to Financial Struggles in New York
December 28, 2023
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Tutor Perini ($NYSE:TPC) Corporation is a leading civil and building construction company operating primarily in the United States. Its stock has recently been downgraded to a “Hold” rating due to financial struggles in New York, the company’s main market. Although Tutor Perini has a number of contracts and projects underway, the current financial situation in the New York area has caused some problems for the company. The rating downgrade to “Hold” is based on the fact that the New York market has become increasingly difficult for Tutor Perini to operate in. With businesses and individuals struggling to make ends meet, the demand for their services has been greatly reduced.
The company also faces a number of risks associated with current projects, including rising costs, delays, and potential losses due to the uncertain economy. These financial uncertainties, combined with the challenges posed by the New York market, have led to the rating downgrade for Tutor Perini. In addition to the current difficulties, there is also the possibility that further financial problems could arise in the future which could further hamper the company’s performance. As a result, investors should proceed with caution when considering investing in Tutor Perini.
Market Price
On Tuesday, TUTOR PERINI saw its stock open at $8.8 and close at $9.0, up by 2.4% from the previous day’s closing price of 8.8. The company has been facing increased competition from larger businesses in the area, as well as a slow-down in infrastructure development. This has resulted in a decreased demand for TUTOR PERINI’s services, leading to a financial dip in the company’s overall performance. The downgrade to ‘hold’ is reflective of the current state of the company’s finances and the uncertain future in New York. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tutor Perini. More…
| Total Revenues | Net Income | Net Margin |
| 3.77k | -216.54 | -5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tutor Perini. More…
| Operations | Investing | Financing |
| 136.5 | -70.19 | -79.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tutor Perini. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.49k | 3.15k | 25.59 |
Key Ratios Snapshot
Some of the financial key ratios for Tutor Perini are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.9% | 5.7% | -4.7% |
| FCF Margin | ROE | ROA |
| 2.0% | -8.2% | -2.5% |
Analysis – Tutor Perini Intrinsic Value
At GoodWhale, we have performed an analysis of TUTOR PERINI‘s fundamentals. Based on our proprietary Valuation Line, we have determined that the fair value of TUTOR PERINI shares is around $8.9. Currently, TUTOR PERINI stock is traded at $9.0, which appears to be a fair price. We believe that investors may find TUTOR PERINI a worthy investment due to its strong fundamentals and share price. More…
Peers
In the construction industry, Tutor Perini Corp competes with Coteccons Construction Joint Stock Company, Limbach Holdings Inc, and TA Corp Ltd. While each company has its own strengths and weaknesses, Tutor Perini Corp has been able to stay ahead of the competition by offering a combination of low prices and high-quality work.
– Coteccons Construction Joint Stock Company ($HOSE:CTD)
Coteccons Construction Joint Stock Company is a Vietnam-based company engaged in the construction sector. The Company’s main businesses include general contracting, investment, design and construction of civil, industrial, infrastructure and commercial works, as well as real estate trading and development. As of December 31, 2011, the Company had a workforce of approximately 25,000 employees.
– Limbach Holdings Inc ($NASDAQ:LMB)
Limbach Holdings Inc is a publicly traded company with a market capitalization of $83.16 million as of 2022. The company has a return on equity of 10.16%. Limbach Holdings Inc is engaged in the design, engineering, construction, and service of HVAC and mechanical, electrical, and plumbing systems for the commercial, industrial, and institutional markets.
– TA Corp Ltd ($SGX:PA3)
Euronet Worldwide Inc. is a leading provider of electronic payments and transaction processing solutions. The company offers a comprehensive suite of products and services for consumer and business-to-business transactions, including electronic funds transfer, point-of-sale, ATM, money transfer, prepaid processing, card issuing and merchant acquiring. Euronet serves financial institutions, retailers, service providers and individual consumers in over 160 countries.
Euronet’s market cap is $35.75 million, and its ROE is -1.46%. The company offers a wide range of products and services for consumer and business-to-business transactions. It has a strong presence in over 160 countries.
Summary
Tutor Perini Corporation has recently been downgraded to a “Hold” rating due to its financial troubles. The company has experienced weakening revenue as well as a decrease in its gross profit margin. Furthermore, the company has increased its long-term debt, resulting in lower liquidity and a higher debt-to-equity ratio.
In addition, Tutor Perini has seen an increase in operating costs, thereby reducing its operating income. As such, investors are advised to exercise caution when considering investing in the company, as it may be subject to further volatility.
