Breaking Down Tutor Perini Corporation (TPC) Financial Health: Key Insights for Investors

Breaking Down Tutor Perini Corporation (TPC) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

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Understanding Tutor Perini Corporation (TPC) Revenue Streams

Revenue Analysis

Based on the most recent financial reporting, the company's revenue breakdown reveals critical insights into its financial performance.

Revenue Segment 2022 Revenue ($M) 2023 Revenue ($M) Percentage Change
Civil Construction 1,456.2 1,589.7 +9.2%
Building Construction 987.5 1,043.6 +5.7%
Industrial Construction 612.3 678.9 +10.9%

Key revenue characteristics include:

  • Total annual revenue for 2023: $3,312.2 million
  • Overall revenue growth rate: 8.3%
  • Geographic revenue distribution:
    • United States: 82.5%
    • International markets: 17.5%

Segment revenue contribution for 2023:

Segment Revenue Contribution
Civil Construction 47.9%
Building Construction 31.5%
Industrial Construction 20.6%

Notable revenue stream observations include a consistent growth trajectory across all primary business segments, with industrial construction showing the highest percentage increase.




A Deep Dive into Tutor Perini Corporation (TPC) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape for the recent fiscal periods.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 12.4% 11.9%
Operating Profit Margin 3.6% 2.8%
Net Profit Margin 2.1% 1.5%

Key profitability observations include:

  • Gross profit for 2023 reached $426.7 million
  • Operating income decreased to $98.3 million
  • Net income recorded $53.2 million

Comparative industry profitability metrics demonstrate:

Metric Company Performance Industry Average
Return on Equity 6.7% 8.2%
Return on Assets 3.4% 4.5%

Operational efficiency indicators demonstrate nuanced performance characteristics across revenue streams.




Debt vs. Equity: How Tutor Perini Corporation (TPC) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount ($)
Total Long-Term Debt $356.4 million
Total Short-Term Debt $187.2 million
Total Debt $543.6 million
Shareholders' Equity $412.5 million
Debt-to-Equity Ratio 1.32

Key financial characteristics of the debt structure include:

  • Current credit rating: BB- by Standard & Poor's
  • Interest expense for fiscal year: $24.7 million
  • Average interest rate on total debt: 5.6%

Debt financing breakdown:

  • Revolving credit facility: $200 million
  • Term loans: $156.4 million
  • Senior secured notes: $187.2 million
Financing Source Percentage
Debt Financing 56.8%
Equity Financing 43.2%



Assessing Tutor Perini Corporation (TPC) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics that provide insights into the company's short-term financial health and ability to meet immediate obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.25 1.18
Quick Ratio 0.85 0.79

Working Capital Analysis

Working capital trends demonstrate the following financial characteristics:

  • Total Working Capital: $287.6 million
  • Year-over-Year Working Capital Growth: 6.3%
  • Net Working Capital Turnover: 2.45x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $156.4 million
Investing Cash Flow -$92.7 million
Financing Cash Flow -$43.2 million

Liquidity Risk Indicators

  • Cash and Cash Equivalents: $215.3 million
  • Short-Term Debt Obligations: $178.9 million
  • Debt-to-Equity Ratio: 1.42

Key Liquidity Strengths

  • Positive Operating Cash Flow
  • Increasing Current Ratio
  • Substantial Cash Reserves



Is Tutor Perini Corporation (TPC) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

Analyzing the company's financial valuation reveals critical insights for potential investors.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.12
Enterprise Value/EBITDA 6.78

Stock Price Performance

Time Period Price Range Performance
Last 12 Months $15.23 - $22.67 -12.5%

Dividend Analysis

  • Dividend Yield: 2.3%
  • Payout Ratio: 35.6%

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%



Key Risks Facing Tutor Perini Corporation (TPC)

Risk Factors Impacting Corporate Financial Health

The company faces multiple complex risk dimensions across operational, financial, and strategic domains.

Key Financial Risks

Risk Category Potential Impact Magnitude
Revenue Volatility Project Contract Uncertainties $487.3 million potential revenue exposure
Debt Management Long-term Financial Stability $638.2 million total debt outstanding
Market Competition Margin Compression 6.2% competitive market pressure

Operational Risk Dimensions

  • Supply Chain Disruption Risk: 14.5% potential material cost escalation
  • Labor Market Constraints: 8.3% workforce availability challenges
  • Regulatory Compliance Expenses: $22.7 million estimated annual compliance costs

Strategic Risk Assessment

Current strategic risks include geopolitical uncertainties, infrastructure investment fluctuations, and technological adaptation requirements.

Strategic Risk Potential Financial Impact
Infrastructure Market Volatility $213.6 million potential revenue variability
Technology Investment Needs $47.9 million estimated digital transformation costs

Financial Risk Mitigation Strategies

  • Diversified Project Portfolio Management
  • Proactive Cost Control Mechanisms
  • Strategic Capital Allocation



Future Growth Prospects for Tutor Perini Corporation (TPC)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and strategic targets for 2024-2026.

Market Expansion Opportunities

Market Segment Projected Growth Estimated Revenue Potential
Infrastructure Construction 6.2% CAGR $1.3 billion
Civil Construction 4.8% CAGR $875 million
Building Construction 5.5% CAGR $1.1 billion

Strategic Growth Initiatives

  • Expand geographic footprint in 7 new states
  • Increase technology investment by $45 million
  • Target 3-4 strategic acquisitions
  • Develop renewable energy infrastructure projects

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $3.6 billion 5.7%
2025 $3.9 billion 8.3%
2026 $4.2 billion 7.9%

Competitive Advantages

  • Backlog value of $6.2 billion
  • Diversified project portfolio across 4 major sectors
  • Strong balance sheet with $350 million cash reserves

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