Tutor Perini (TPC) Valuation Check As Contract Wins And Margin Stabilization Support Infrastructure Backlog

Recent contract wins and signs of margin stabilization at Tutor Perini (TPC) have put the stock back in focus as investors reassess its role in federally and locally funded U.S. infrastructure projects.

See our latest analysis for Tutor Perini.

The recent contract updates and margin stabilization have come alongside firm share price momentum, with a 30 day share price return of 11.99% and a very large 1 year total shareholder return. This suggests renewed confidence that the current project mix and backlog can support Tutor Perini’s long term story.

If infrastructure trends have your attention, it could be a good moment to broaden your watchlist and look at aerospace and defense stocks as another way to find construction related exposure.

With TPC up 11.99% over the past month and trading at a small intrinsic discount, plus further headroom to the average analyst target, the key question is whether there is still a genuine opportunity here or if the market is already pricing in future growth.

Most Popular Narrative: 13.1% Undervalued

At a last close of $77.34 versus a narrative fair value of $89, the current price sits below what the most followed thesis is working with, putting more attention on the assumptions behind that gap.

Record backlog growth, now at an all-time high of $21.1 billion (up 102% YoY), provides strong visibility and multi-year revenue predictability, as a series of major projects ramp up over the next several years.

Read the complete narrative.

Curious what kind of revenue runway and margin path need to hold for that backlog figure to support an $89 fair value, and how that ties into the profit multiple used on future earnings and the discount rate behind the model? The full narrative lays out those moving parts and how they connect to today’s price.

Result: Fair Value of $89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on complex mega projects staying on track, and on legacy cost or litigation issues not resurfacing to pressure margins and earnings again.

Find out about the key risks to this Tutor Perini narrative.

Build Your Own Tutor Perini Narrative

If you interpret the numbers differently or prefer to test the assumptions yourself, you can build a custom thesis in minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Tutor Perini.

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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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