QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PWR - US74762E1029 - Common Stock
468.76 USD
-0.02 (0%)
470.8 USD
+2.04 (+0.44%)
Overall PWR gets a fundamental rating of 5 out of 10. We evaluated PWR against 55 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. 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.
- PWR had positive earnings in each of the past 5 years.
- In the past 5 years PWR always reported a positive cash flow from operatings.
1.2 Ratios
- PWR has a Return On Assets of 4.48%. This is comparable to the rest of the industry: PWR outperforms 58.18% of its industry peers.
- Looking at the Return On Equity, with a value of 12.13%, PWR is in line with its industry, outperforming 56.36% of the companies in the same industry.
- 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 15.97%.
- 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
- With a Profit Margin value of 3.74%, PWR perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of PWR has grown nicely.
- Looking at the Operating Margin, with a value of 5.60%, PWR is in line with its industry, outperforming 50.91% of the companies in the same industry.
- In the last couple of years the Operating Margin of PWR has grown nicely.
- Looking at the Gross Margin, with a value of 15.16%, PWR is in line with its industry, outperforming 43.64% of the companies in the same 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
- 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.
- The debt/assets ratio for PWR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.86 indicates that PWR is not in any danger for bankruptcy at the moment.
- PWR has a better Altman-Z score (4.86) than 72.73% of its industry peers.
- PWR has a debt to FCF ratio of 4.50. This is a neutral value as PWR would need 4.50 years to pay back of all of its debts.
- PWR's Debt to FCF ratio of 4.50 is fine compared to the rest of the industry. PWR outperforms 65.45% of its industry peers.
- PWR has a Debt/Equity ratio of 0.66. This is a neutral value indicating PWR is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.66, PWR perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.75
WACC9.96%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that PWR should not have too much problems paying its short term obligations.
- PWR's Current ratio of 1.34 is fine compared to the rest of the industry. PWR outperforms 61.82% 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 comparable to the rest of the industry: PWR outperforms 58.18% 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
- 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 12.96% on average per year.
EPS Next Y19.46%
EPS Next 2Y18.46%
EPS Next 3Y17.18%
EPS Next 5Y18.45%
Revenue Next Year18.08%
Revenue Next 2Y15.24%
Revenue Next 3Y14.04%
Revenue Next 5Y12.96%
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.
- 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
- The Price/Earnings ratio is 44.52, which means the current valuation is very expensive for PWR.
- PWR's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PWR is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 37.24, the valuation of PWR can be described as expensive.
- PWR's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PWR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.52 | ||
| Fwd PE | 37.24 |
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 | 55.84 | ||
| EV/EBITDA | 31.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of PWR may justify a higher PE ratio.
- A more expensive valuation may be justified as PWR's earnings are expected to grow with 17.18% in the coming years.
PEG (NY)2.29
PEG (5Y)2.44
EPS Next 2Y18.46%
EPS Next 3Y17.18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.10%, PWR is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.44, PWR pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.10, PWR pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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
- 5.78% of the earnings are spent on dividend by PWR. This is a low number and 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 2Y18.46%
EPS Next 3Y17.18%
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.
What is the valuation status of QUANTA SERVICES INC (PWR) stock?
ChartMill assigns a valuation rating of 2 / 10 to QUANTA SERVICES INC (PWR). This can be considered as Overvalued.
How profitable is QUANTA SERVICES INC (PWR) stock?
QUANTA SERVICES INC (PWR) has a profitability rating of 6 / 10.
What is the earnings growth outlook for QUANTA SERVICES INC?
The Earnings per Share (EPS) of QUANTA SERVICES INC (PWR) is expected to grow by 19.46% in the next year.
Can you provide the dividend sustainability for PWR stock?
The dividend rating of QUANTA SERVICES INC (PWR) is 4 / 10 and the dividend payout ratio is 5.78%.