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Should you consider QUANTA SERVICES INC (NYSE:PWR) for quality investing?

By Mill Chart

Last update: Feb 27, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if QUANTA SERVICES INC (NYSE:PWR) is suited for quality investing. Investors should of course do their own research, but we spotted QUANTA SERVICES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:PWR may be interesting for quality investors.

  • The 5-year revenue growth of QUANTA SERVICES INC has been remarkable, with 13.33% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • The ROIC excluding cash and goodwill of QUANTA SERVICES INC stands at 18.85%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • QUANTA SERVICES INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.7, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 119.0%, QUANTA SERVICES INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • QUANTA SERVICES INC has experienced impressive EBIT growth over the past 5 years, with 13.45% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • The EBIT 5-year growth of QUANTA SERVICES INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NYSE:PWR

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 39 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of PWR get a neutral evaluation. Nothing too spectacular is happening here. PWR is valued quite expensively, but it does show have an excellent growth rating. These ratings could make PWR a good candidate for growth investing.

Check the latest full fundamental report of PWR for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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