QUANTA SERVICES INC (PWR)
US74762E1029 - Common Stock
We assign a fundamental rating of 5 out of 10 to PWR. PWR was compared to 44 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. While showing a medium growth rate, PWR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PWR had positive earnings in the past year.
PWR had a positive operating cash flow in the past year.
Each year in the past 5 years PWR has 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 4.99%, PWR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
PWR's Return On Equity of 12.92% is fine compared to the rest of the industry. PWR outperforms 71.43% of its industry peers.
With a decent Return On Invested Capital value of 7.97%, PWR is doing good in the industry, outperforming 69.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PWR is below the industry average of 9.25%.
The 3 year average ROIC (6.15%) for PWR is below the current ROIC(7.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 12.92% | ||
| ROIC | 7.97% |
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
PWR has a Profit Margin (3.54%) which is in line with its industry peers.
PWR's Profit Margin has improved in the last couple of years.
The Operating Margin of PWR (5.11%) 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 14.15%, PWR is in line with its industry, outperforming 40.48% of the companies in the same industry.
PWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.11% | ||
| PM (TTM) | 3.54% | ||
| GM | 14.15% |
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
PWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PWR has been increased compared to 1 year ago.
Compared to 5 years ago, PWR has more shares outstanding
PWR has a better debt/assets ratio than last year.
2.2 Solvency
PWR has an Altman-Z score of 5.20. 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 5.20, PWR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of PWR is 2.32, which is a good value as it means it would take PWR, 2.32 years of fcf income to pay off all of its debts.
PWR's Debt to FCF ratio of 2.32 is fine compared to the rest of the industry. PWR outperforms 78.57% of its industry peers.
PWR has a Debt/Equity ratio of 0.58. This is a neutral value indicating PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: PWR outperforms 47.62% of its industry peers.
Even though the debt/equity ratio score it not favorable for PWR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 5.2 |
ROIC/WACC0.72
WACC10.99%
2.3 Liquidity
PWR has a Current Ratio of 1.47. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.47, PWR is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
PWR has a Quick Ratio of 1.44. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.44, PWR is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.50% over the past year.
Measured over the past years, PWR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.43% on average per year.
PWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.36%.
PWR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.33% yearly.
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 14.14% 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 9.72% yearly.
EPS Next Y22.04%
EPS Next 2Y18.68%
EPS Next 3Y17.73%
EPS Next 5Y14.14%
Revenue Next Year17.17%
Revenue Next 2Y14.75%
Revenue Next 3Y13.14%
Revenue Next 5Y9.72%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PWR is valuated quite expensively with a Price/Earnings ratio of 42.13.
PWR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PWR to the average of the S&P500 Index (28.96), we can say PWR is valued slightly more expensively.
With a Price/Forward Earnings ratio of 33.67, PWR can be considered very expensive at the moment.
69.05% of the companies in the same industry are cheaper than PWR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PWR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.13 | ||
| Fwd PE | 33.67 |
4.2 Price Multiples
PWR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PWR is more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PWR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.78 | ||
| EV/EBITDA | 27.93 |
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 17.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)2.06
EPS Next 2Y18.68%
EPS Next 3Y17.73%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.11%, which is pretty low.
Compared to an average industry Dividend Yield of 0.84, PWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
5.2 History
On average, the dividend of PWR grows each year by 20.51%, which is quite nice.
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
PWR pays out 6.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of PWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.47%
EPS Next 2Y18.68%
EPS Next 3Y17.73%
QUANTA SERVICES INC
NYSE:PWR (11/21/2024, 8:04:00 PM)
After market: 340.01 0 (0%)340.01
+7.67 (+2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap50.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.13 | ||
| Fwd PE | 33.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.91
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 12.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.11% | ||
| PM (TTM) | 3.54% | ||
| GM | 14.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.5%
EPS 3Y23.25%
EPS 5Y
EPS Q2Q%
EPS Next Y22.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.36%
Revenue growth 3Y23.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y