QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
429.3 USD
+2.37 (+0.56%)
431 USD
+1.7 (+0.4%)
PWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. PWR has an average financial health and profitability rating. PWR shows excellent growth, but is valued quite expensive already. These ratings could make PWR a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year PWR was profitable.
PWR had a positive operating cash flow in the past year.
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
PWR has a Return On Assets (4.48%) which is in line with its industry peers.
PWR has a Return On Equity of 12.13%. This is comparable to the rest of the industry: PWR outperforms 58.18% of its industry peers.
The Return On Invested Capital of PWR (7.46%) is better than 61.82% of its industry peers.
PWR had an Average Return On Invested Capital over the past 3 years of 7.28%. This is significantly below the industry average of 16.87%.
The last Return On Invested Capital (7.46%) for PWR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 12.13% | ||
| ROIC | 7.46% |
ROA(3y)4.36%
ROA(5y)4.43%
ROE(3y)11.12%
ROE(5y)10.62%
ROIC(3y)7.28%
ROIC(5y)6.8%
1.3 Margins
The Profit Margin of PWR (3.74%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PWR has grown nicely.
PWR's Operating Margin of 5.60% is in line compared to the rest of the industry. PWR outperforms 54.55% of its industry peers.
In the last couple of years the Operating Margin of PWR has grown nicely.
The Gross Margin of PWR (15.16%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PWR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.6% | ||
| PM (TTM) | 3.74% | ||
| GM | 15.16% |
OM growth 3Y4.36%
OM growth 5Y3.12%
PM growth 3Y0.69%
PM growth 5Y2.86%
GM growth 3Y-0.48%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWR is destroying value.
The number of shares outstanding for PWR has been increased compared to 1 year ago.
The number of shares outstanding for PWR has been increased compared to 5 years ago.
The debt/assets ratio for PWR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that PWR is not in any danger for bankruptcy at the moment.
PWR's Altman-Z score of 4.61 is fine compared to the rest of the industry. PWR outperforms 70.91% of its industry peers.
The Debt to FCF ratio of PWR is 4.50, which is a neutral value as it means it would take PWR, 4.50 years of fcf income to pay off all of its debts.
PWR has a Debt to FCF ratio of 4.50. This is in the better half of the industry: PWR outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that PWR is somewhat dependend on debt financing.
The Debt to Equity ratio of PWR (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.74
WACC10.06%
2.3 Liquidity
PWR has a Current Ratio of 1.34. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.34, PWR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that PWR should not have too much problems paying its short term obligations.
PWR's Quick ratio of 1.30 is in line compared to the rest of the industry. PWR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
PWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.48%, which is quite impressive.
The Earnings Per Share has been growing by 18.25% on average over the past years. This is quite good.
PWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.72%.
Measured over the past years, PWR shows a quite strong growth in Revenue. The Revenue has been growing by 14.34% on average per year.
EPS 1Y (TTM)30.48%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%22.43%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%17.53%
3.2 Future
Based on estimates for the next years, PWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.45% on average per year.
The Revenue is expected to grow by 14.09% on average over the next years. This is quite good.
EPS Next Y19.17%
EPS Next 2Y18.25%
EPS Next 3Y17.59%
EPS Next 5Y18.45%
Revenue Next Year17.32%
Revenue Next 2Y14.87%
Revenue Next 3Y13.92%
Revenue Next 5Y14.09%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.77, PWR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PWR is on the same level as its industry peers.
PWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 34.22, 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 (34.59), we can say PWR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.77 | ||
| Fwd PE | 34.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PWR is valued a bit more expensive than 60.00% of the companies in the same industry.
PWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.1 | ||
| EV/EBITDA | 28.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PWR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PWR's earnings are expected to grow with 17.59% in the coming years.
PEG (NY)2.13
PEG (5Y)2.23
EPS Next 2Y18.25%
EPS Next 3Y17.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, PWR is not a good candidate for dividend investing.
PWR's Dividend Yield is a higher than the industry average which is at 1.76.
Compared to an average S&P500 Dividend Yield of 2.44, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
On average, the dividend of PWR grows each year by 17.70%, which is quite nice.
PWR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)17.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PWR pays out 5.78% of its income as dividend. This is a sustainable payout ratio.
PWR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP5.78%
EPS Next 2Y18.25%
EPS Next 3Y17.59%
429.3
+2.37 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-1.15%
Ins Owners0.61%
Ins Owner Change-1.39%
Market Cap63.97B
Revenue(TTM)27.19B
Net Income(TTM)1.02B
Analysts76.67
Price Target433.75 (1.04%)
Short Float %3.05%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP5.78%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.83%
Min EPS beat(2)0.46%
Max EPS beat(2)1.21%
EPS beat(4)4
Avg EPS beat(4)4.54%
Min EPS beat(4)0.46%
Max EPS beat(4)11.07%
EPS beat(8)7
Avg EPS beat(8)3.48%
EPS beat(12)10
Avg EPS beat(12)3.81%
EPS beat(16)13
Avg EPS beat(16)4.01%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)2.11%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)5.24%
Revenue beat(8)6
Avg Revenue beat(8)2.21%
Revenue beat(12)10
Avg Revenue beat(12)3.29%
Revenue beat(16)14
Avg Revenue beat(16)3.7%
PT rev (1m)1.57%
PT rev (3m)4.09%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0.14%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.77 | ||
| Fwd PE | 34.22 | ||
| P/S | 2.35 | ||
| P/FCF | 51.1 | ||
| P/OCF | 35.26 | ||
| P/B | 7.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.84 |
EPS(TTM)10.53
EY2.45%
EPS(NY)12.54
Fwd EY2.92%
FCF(TTM)8.4
FCFY1.96%
OCF(TTM)12.18
OCFY2.84%
SpS182.48
BVpS56.34
TBVpS-4.23
PEG (NY)2.13
PEG (5Y)2.23
Graham Number115.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 12.13% | ||
| ROCE | 9.7% | ||
| ROIC | 7.46% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 19.33% | ||
| OM | 5.6% | ||
| PM (TTM) | 3.74% | ||
| GM | 15.16% | ||
| FCFM | 4.6% |
ROA(3y)4.36%
ROA(5y)4.43%
ROE(3y)11.12%
ROE(5y)10.62%
ROIC(3y)7.28%
ROIC(5y)6.8%
ROICexc(3y)7.87%
ROICexc(5y)7.25%
ROICexgc(3y)18.13%
ROICexgc(5y)15.89%
ROCE(3y)9.46%
ROCE(5y)8.84%
ROICexgc growth 3Y19.69%
ROICexgc growth 5Y10.82%
ROICexc growth 3Y17.18%
ROICexc growth 5Y2.48%
OM growth 3Y4.36%
OM growth 5Y3.12%
PM growth 3Y0.69%
PM growth 5Y2.86%
GM growth 3Y-0.48%
GM growth 5Y2.34%
F-Score6
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 64.71% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 7.01 | ||
| Cash Conversion | 75.86% | ||
| Profit Quality | 122.97% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 4.61 |
F-Score6
WACC10.06%
ROIC/WACC0.74
Cap/Depr(3y)73.31%
Cap/Depr(5y)79.62%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.5%
Profit Quality(3y)152.78%
Profit Quality(5y)138.11%
High Growth Momentum
Growth
EPS 1Y (TTM)30.48%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%22.43%
EPS Next Y19.17%
EPS Next 2Y18.25%
EPS Next 3Y17.59%
EPS Next 5Y18.45%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%17.53%
Revenue Next Year17.32%
Revenue Next 2Y14.87%
Revenue Next 3Y13.92%
Revenue Next 5Y14.09%
EBIT growth 1Y30.1%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.61%
EBIT Next 3Y38.24%
EBIT Next 5Y30.28%
FCF growth 1Y71.21%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y57.02%
OCF growth 3Y52.89%
OCF growth 5Y31.64%
QUANTA SERVICES INC / PWR FAQ
What is the ChartMill fundamental rating of QUANTA SERVICES INC (PWR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PWR.
Can you provide the valuation status for QUANTA SERVICES INC?
ChartMill assigns a valuation rating of 2 / 10 to QUANTA SERVICES INC (PWR). This can be considered as Overvalued.
Can you provide the profitability details for QUANTA SERVICES INC?
QUANTA SERVICES INC (PWR) has a profitability rating of 6 / 10.
What is the valuation of QUANTA SERVICES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for QUANTA SERVICES INC (PWR) is 40.77 and the Price/Book (PB) ratio is 7.62.
What is the financial health of QUANTA SERVICES INC (PWR) stock?
The financial health rating of QUANTA SERVICES INC (PWR) is 5 / 10.