QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
426.93 USD
-22.49 (-5%)
426.93 USD
0 (0%)
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 55 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. With these ratings, PWR could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year PWR was profitable.
In the past year PWR had a positive cash flow from operations.
In the past 5 years PWR has always been profitable.
In the past 5 years PWR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.48%, PWR perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for PWR is significantly below the industry average of 16.81%.
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
PWR's Profit Margin of 3.74% is in line compared to the rest of the industry. PWR outperforms 60.00% of its industry peers.
PWR's Profit Margin has improved in the last couple of years.
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.
PWR's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PWR is destroying value.
Compared to 1 year ago, PWR has more shares outstanding
PWR has more shares outstanding than it did 5 years ago.
PWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.74 indicates that PWR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.74, PWR is doing good in the industry, outperforming 69.09% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.50, PWR is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.74 |
ROIC/WACC0.75
WACC10%
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.
The Current ratio of PWR (1.34) is better than 63.64% of its industry peers.
A Quick Ratio of 1.30 indicates that PWR should not have too much problems paying its short term obligations.
PWR has a Quick ratio of 1.30. This is in the better half of the industry: PWR outperforms 61.82% 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.
PWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
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
The Earnings Per Share is expected to grow by 18.45% on average over the next years. This is quite good.
Based on estimates for the next years, PWR will show a quite strong growth in Revenue. The Revenue will grow by 14.09% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
PWR is valuated quite expensively with a Price/Earnings ratio of 40.54.
PWR's Price/Earnings ratio is in line with the industry average.
PWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 34.04, which means the current valuation is very expensive for PWR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PWR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.43. PWR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.54 | ||
| Fwd PE | 34.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PWR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PWR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.82 | ||
| EV/EBITDA | 30.1 |
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.
PWR's earnings are expected to grow with 17.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)2.22
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.
Compared to an average industry Dividend Yield of 1.78, PWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 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%
426.93
-22.49 (-5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-2.05%
Ins Owners0.61%
Ins Owner Change-0.06%
Market Cap63.62B
Revenue(TTM)27.19B
Net Income(TTM)1.02B
Analysts76.67
Price Target433.75 (1.6%)
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)-0.69%
EPS NQ rev (3m)1.45%
EPS NY rev (1m)0.14%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.54 | ||
| Fwd PE | 34.04 | ||
| P/S | 2.34 | ||
| P/FCF | 50.82 | ||
| P/OCF | 35.06 | ||
| P/B | 7.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.1 |
EPS(TTM)10.53
EY2.47%
EPS(NY)12.54
Fwd EY2.94%
FCF(TTM)8.4
FCFY1.97%
OCF(TTM)12.18
OCFY2.85%
SpS182.48
BVpS56.34
TBVpS-4.23
PEG (NY)2.12
PEG (5Y)2.22
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 | 4.74 |
F-Score6
WACC10%
ROIC/WACC0.75
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 40.54 and the Price/Book (PB) ratio is 7.58.
What is the financial health of QUANTA SERVICES INC (PWR) stock?
The financial health rating of QUANTA SERVICES INC (PWR) is 5 / 10.