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.
A Deep Dive into QUANTA SERVICES INC's Quality Metrics.
QUANTA SERVICES INC has shown strong performance in revenue growth over the past 5 years, with a 13.33% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
QUANTA SERVICES INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 20.3% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
With a Debt/Free Cash Flow Ratio of 2.32, QUANTA SERVICES INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
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 consistently achieved strong EBIT growth over the past 5 years, with a 13.45% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
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 else is there to say on the fundamentals 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.
We assign a fundamental rating of 6 out of 10 to PWR. PWR was compared to 44 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. This makes PWR very considerable for growth investing!
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
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.