Tutor Perini: A Mispriced Gem in the Infrastructure Construction Sector?

Let's cut to the chase: Tutor Perini (TPC) has been a rollercoaster ride for investors. Over the past 12 months, the stock has surged 138%, dwarfing the S&P 500's 16% gain and leaving the construction sector in its dust, according to StockAnalysis statistics. Year-to-date in 2025, it's up 159.67%-a number that screams "buy" to some and "bubble" to others. But here's the twist: despite this meteoric rise, TPC's valuation metrics suggest it might still be undervalued. How's that possible? Let's break it down.

The Paradox of Performance and Valuation

TPC's stock has defied gravity, but its fundamentals tell a different story. StockAnalysis shows the company reported a net loss of $132.32 million over the past 12 months, with a negative net income per share of -$2.52. That's a red flag for many investors. Yet, its price-to-sales (P/S) ratio of 0.68 is a steal compared to the sector average of 1.4x, according to Simply Wall St. Even its peers, like MYR Group (0.9x) and Legence (0.8x), trade at higher multiples. So, why is the market punishing TPC's earnings while rewarding its revenue?

The answer lies in the company's balance sheet. StockAnalysis data indicate TPC carries a debt-to-equity ratio of 0.39 and holds $46.56 million in net cash. That's not a crisis-it's a buffer. But the market is fixated on its net loss, ignoring the fact that TPC's trailing 12-month revenue hit $4.77 billion, up 12.03% year-over-year. For a construction firm, that kind of growth is rare.

The EV/EBITDA Dilemma

TPC's enterprise value (EV) to EBITDA ratio of 1,622.57 is absurdly high, per StockAnalysis. By comparison, the sector average is a more palatable 15.58, according to Damodaran data. But here's the catch: EBITDA is meaningless for a company posting net losses. TPC's negative earnings distort the ratio, making it look overvalued when it's actually a victim of its own accounting. Analysts peg its fair value at $66.75, implying an 8.34% upside from current levels, a conclusion many draw from the same StockAnalysis metrics. That's not a stretch-it's a calculated bet on improved profitability.

Why This Is a Mispriced Opportunity

The construction sector is cyclical, and TPC's recent underperformance relative to the S&P 500 is more about short-term pain than long-term damage. While the stock occasionally dips harder than the broader market (as seen in the Damodaran data), its five-year return of 390.55% reported by Simply Wall St proves it's a survivor. The key question is whether the market is overcorrecting for TPC's earnings blips.

Consider this: TPC's revenue has grown 12% year-to-date, with a debt load that's manageable and cash reserves to weather storms. Its P/S ratio is dirt cheap for a firm with such robust top-line growth. If the company can turn its net loss into a profit-even a modest one-the EV/EBITDA ratio would normalize, and the stock could rocket higher.

The Bottom Line

TPC isn't a no-brainer. It's a high-risk, high-reward play. But for investors who can stomach the volatility, it's a textbook case of mispriced value. The market is pricing in perpetual losses, but the fundamentals suggest otherwise. If TPC can leverage its strong revenue growth to turn around its earnings, the 8.34% fair value upside could be just the beginning.