In this article we will dive into QUANTA SERVICES INC (NYSE:PWR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed QUANTA SERVICES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
A Deep Dive into QUANTA SERVICES INC's Quality Metrics.
QUANTA SERVICES INC has demonstrated significant revenue growth over the past 5 years, with a 13.33% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
With a robust ROIC excluding cash and goodwill at 19.81%, QUANTA SERVICES INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
With a favorable Debt/Free Cash Flow Ratio of 2.73, QUANTA SERVICES INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
The Profit Quality (5-year) of QUANTA SERVICES INC stands at 119.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
QUANTA SERVICES INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.45%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
With EBIT 5-year growth outpacing its Revenue 5-year growth, QUANTA SERVICES INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What is the full fundamental picture of NYSE:PWR telling us.
ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 43 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. PWR is valued quite expensive, but it does show an excellent growth. These ratings would make PWR suitable for growth investing!
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.