QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
NYSE:PWR - New York Stock Exchange, Inc. - US74762E1029 - Common Stock - Currency: USD
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 47 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 shows excellent growth, but is valued quite expensive already. This makes PWR very considerable for growth investing!
1. Profitability
1.1 Basic Checks
PWR had positive earnings in the past year.
In the past year PWR had a positive cash flow from operations.
In the past 5 years PWR has always been profitable.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.96%, PWR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
With a decent Return On Equity value of 12.03%, PWR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.07%, PWR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PWR is significantly below the industry average of 11.58%.
The last Return On Invested Capital (8.07%) for PWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.03% | ||
| ROIC | 8.07% |
ROA(3y)4%
ROA(5y)4.43%
ROE(3y)10.17%
ROE(5y)10.14%
ROIC(3y)6.15%
ROIC(5y)6.53%
1.3 Margins
With a decent Profit Margin value of 3.59%, PWR is doing good in the industry, outperforming 64.44% of the companies in the same industry.
In the last couple of years the Profit Margin of PWR has grown nicely.
PWR has a Operating Margin (5.18%) which is comparable to the rest of the industry.
PWR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 13.96%, PWR is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of PWR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.18% | ||
| PM (TTM) | 3.59% | ||
| GM | 13.96% |
OM growth 3Y-0.24%
OM growth 5Y0.11%
PM growth 3Y-3.6%
PM growth 5Y6.34%
GM growth 3Y-1.74%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWR is destroying value.
PWR has more shares outstanding than it did 1 year ago.
PWR has more shares outstanding than it did 5 years ago.
PWR has a better debt/assets ratio than last year.
2.2 Solvency
PWR has an Altman-Z score of 5.03. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.03, PWR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
PWR has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as PWR would need 2.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.29, PWR is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
PWR has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
PWR has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: PWR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 5.03 |
ROIC/WACC0.69
WACC11.62%
2.3 Liquidity
PWR has a Current Ratio of 1.30. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PWR (1.30) is comparable to the rest of the industry.
A Quick Ratio of 1.25 indicates that PWR should not have too much problems paying its short term obligations.
The Quick ratio of PWR (1.25) is worse than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
PWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.50%, which is quite good.
PWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.43% yearly.
The Revenue has grown by 17.36% in the past year. This is quite good.
Measured over the past years, PWR shows a quite strong growth in Revenue. The Revenue has been growing by 13.33% on average per year.
EPS 1Y (TTM)18.5%
EPS 3Y23.25%
EPS 5Y20.43%
EPS Q2Q%21.43%
Revenue 1Y (TTM)17.36%
Revenue growth 3Y23.07%
Revenue growth 5Y13.33%
Sales Q2Q%15.52%
3.2 Future
The Earnings Per Share is expected to grow by 17.80% on average over the next years. This is quite good.
PWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.69% yearly.
EPS Next Y21.96%
EPS Next 2Y19.98%
EPS Next 3Y18.57%
EPS Next 5Y17.8%
Revenue Next Year17.25%
Revenue Next 2Y14.95%
Revenue Next 3Y13.36%
Revenue Next 5Y13.69%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.17, which means the current valuation is very expensive for PWR.
PWR's Price/Earnings ratio is in line with the industry average.
PWR is valuated rather expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.07, the valuation of PWR can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PWR.
When comparing the Price/Forward Earnings ratio of PWR to the average of the S&P500 Index (92.74), we can say PWR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 29.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PWR is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
PWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.76 | ||
| EV/EBITDA | 26.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PWR may justify a higher PE ratio.
PWR's earnings are expected to grow with 18.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)1.82
EPS Next 2Y19.98%
EPS Next 3Y18.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.13%, PWR is not a good candidate for dividend investing.
PWR's Dividend Yield is a higher than the industry average which is at 1.58.
Compared to an average S&P500 Dividend Yield of 2.28, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
The dividend of PWR is nicely growing with an annual growth rate of 20.51%!
PWR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)20.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
6.36% of the earnings are spent on dividend by PWR. This is a low number and sustainable payout ratio.
The dividend of PWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.36%
EPS Next 2Y19.98%
EPS Next 3Y18.57%
QUANTA SERVICES INC
NYSE:PWR (2/4/2025, 8:04:00 PM)
After market: 300.17 +0.19 (+0.06%)299.98
-1.84 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.1%
Inst Owner Change-0.45%
Ins Owners0.81%
Ins Owner Change-6.13%
Market Cap44.28B
Analysts80.71
Price Target363.23 (21.08%)
Short Float %3.01%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
Yearly Dividend0.33
Dividend Growth(5Y)20.51%
DP6.36%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-0.66%
Max EPS beat(2)8.29%
EPS beat(4)3
Avg EPS beat(4)3.67%
Min EPS beat(4)-0.66%
Max EPS beat(4)8.29%
EPS beat(8)5
Avg EPS beat(8)3.32%
EPS beat(12)9
Avg EPS beat(12)3.89%
EPS beat(16)13
Avg EPS beat(16)6.75%
Revenue beat(2)2
Avg Revenue beat(2)0.74%
Min Revenue beat(2)0.58%
Max Revenue beat(2)0.9%
Revenue beat(4)4
Avg Revenue beat(4)4.47%
Min Revenue beat(4)0.58%
Max Revenue beat(4)10.53%
Revenue beat(8)8
Avg Revenue beat(8)4.27%
Revenue beat(12)11
Avg Revenue beat(12)4.2%
Revenue beat(16)11
Avg Revenue beat(16)2.91%
PT rev (1m)4.41%
PT rev (3m)13.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 29.07 | ||
| P/S | 2.01 | ||
| P/FCF | 28.76 | ||
| P/OCF | 21.71 | ||
| P/B | 6.74 | ||
| P/tB | 51.1 | ||
| EV/EBITDA | 26.5 |
EPS(TTM)8.07
EY2.69%
EPS(NY)10.32
Fwd EY3.44%
FCF(TTM)10.43
FCFY3.48%
OCF(TTM)13.82
OCFY4.61%
SpS149.25
BVpS44.49
TBVpS5.87
PEG (NY)1.69
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.03% | ||
| ROCE | 10.76% | ||
| ROIC | 8.07% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 19.5% | ||
| OM | 5.18% | ||
| PM (TTM) | 3.59% | ||
| GM | 13.96% | ||
| FCFM | 6.99% |
ROA(3y)4%
ROA(5y)4.43%
ROE(3y)10.17%
ROE(5y)10.14%
ROIC(3y)6.15%
ROIC(5y)6.53%
ROICexc(3y)6.65%
ROICexc(5y)6.92%
ROICexgc(3y)14.83%
ROICexgc(5y)13.91%
ROCE(3y)8.2%
ROCE(5y)8.71%
ROICexcg growth 3Y14.65%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y4.95%
ROICexc growth 5Y0.18%
OM growth 3Y-0.24%
OM growth 5Y0.11%
PM growth 3Y-3.6%
PM growth 5Y6.34%
GM growth 3Y-1.74%
GM growth 5Y1.2%
F-Score6
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 77.83% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 6.42 | ||
| Cash Conversion | 114.3% | ||
| Profit Quality | 194.8% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 5.03 |
F-Score6
WACC11.62%
ROIC/WACC0.69
Cap/Depr(3y)76.81%
Cap/Depr(5y)82.07%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.42%
Profit Quality(3y)111.78%
Profit Quality(5y)118.58%
High Growth Momentum
Growth
EPS 1Y (TTM)18.5%
EPS 3Y23.25%
EPS 5Y20.43%
EPS Q2Q%21.43%
EPS Next Y21.96%
EPS Next 2Y19.98%
EPS Next 3Y18.57%
EPS Next 5Y17.8%
Revenue 1Y (TTM)17.36%
Revenue growth 3Y23.07%
Revenue growth 5Y13.33%
Sales Q2Q%15.52%
Revenue Next Year17.25%
Revenue Next 2Y14.95%
Revenue Next 3Y13.36%
Revenue Next 5Y13.69%
EBIT growth 1Y23.42%
EBIT growth 3Y22.78%
EBIT growth 5Y13.45%
EBIT Next Year82.33%
EBIT Next 3Y33.36%
EBIT Next 5Y27.57%
FCF growth 1Y12954.8%
FCF growth 3Y9.85%
FCF growth 5Y86.1%
OCF growth 1Y332.4%
OCF growth 3Y12.19%
OCF growth 5Y34.44%