Tutor Perini Corporation Common Stock (TPC)

FairStock Score: 45/100 — MIXED

Key Financials

Strengths

• Generates $496 million in annual free cash flow (11.1% yield on market cap)
• Solid return on equity of 11.8% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.37, providing financial flexibility
• Revenue growth of 41.2% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($28) with negative 203% margin of safety—limited downside protection
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Tutor Perini Corporation Common Stock is a small-cap industrials company valued at $4.5 billion. The business generates $5.5 billion in annual revenue with a 0.5% net margin and $496 million in free cash flow. From a quality standpoint, Tutor shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is commanding a steep 57.3x multiple, with trades far above its Graham Number ($28) with no margin of safety. Growth dynamics show revenue growing at 41.2% and profit growth of 136.3%. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Tutor's 41% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $496 million in annual free cash flow (11.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 57x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer