QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
NYSE:PWR - New York Stock Exchange, Inc. - US74762E1029 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PWR. PWR was compared to 47 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. These ratings would make PWR suitable 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.
PWR had positive earnings in each of the past 5 years.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PWR has a Return On Assets of 5.68%. This is in the better half of the industry: PWR outperforms 68.09% of its industry peers.
PWR's Return On Equity of 13.78% is fine compared to the rest of the industry. PWR outperforms 65.96% of its industry peers.
PWR has a better Return On Invested Capital (9.40%) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 13.78% | ||
| ROIC | 9.4% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PWR has a better Profit Margin (3.82%) than 65.96% of its industry peers.
In the last couple of years the Profit Margin of PWR has grown nicely.
PWR has a Operating Margin (5.47%) which is comparable to the rest of the industry.
PWR's Operating Margin has improved in the last couple of years.
PWR's Gross Margin of 14.83% is in line compared to the rest of the industry. PWR outperforms 48.94% of its industry peers.
PWR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.47% | ||
| PM (TTM) | 3.82% | ||
| GM | 14.83% |
OM growth 3Y4.36%
OM growth 5Y2.64%
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.
There is no outstanding debt for PWR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.66 indicates that PWR is not in any danger for bankruptcy at the moment.
PWR has a Altman-Z score of 4.66. This is in the better half of the industry: PWR outperforms 78.72% of its industry peers.
PWR has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as PWR would need 2.38 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.38, PWR is doing good in the industry, outperforming 63.83% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that PWR is not too dependend on debt financing.
PWR has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: PWR outperforms 59.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 4.66 |
ROIC/WACC0.98
WACC9.55%
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.
Looking at the Current ratio, with a value of 1.30, PWR is in line with its industry, outperforming 44.68% of the companies in the same industry.
PWR has a Quick Ratio of 1.25. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
PWR has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.10% over the past year.
PWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
The Revenue has grown by 13.36% in the past year. This is quite good.
The Revenue has been growing by 14.34% on average over the past years. This is quite good.
EPS 1Y (TTM)25.1%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%44.12%
Revenue 1Y (TTM)13.36%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%13.3%
3.2 Future
The Earnings Per Share is expected to grow by 16.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.35% on average over the next years. This is quite good.
EPS Next Y15.09%
EPS Next 2Y15.48%
EPS Next 3Y16.81%
EPS Next 5Y16.01%
Revenue Next Year13.26%
Revenue Next 2Y11.47%
Revenue Next 3Y12.36%
Revenue Next 5Y12.35%
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
A Price/Earnings ratio of 27.43 indicates a quite expensive valuation of PWR.
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 similar valuation than the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 23.83, PWR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PWR is on the same level as its industry peers.
PWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 23.83 |
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.
PWR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.68 | ||
| EV/EBITDA | 19.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PWR does not grow enough to justify the current Price/Earnings ratio.
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 16.81% in the coming years.
PEG (NY)1.82
PEG (5Y)1.5
EPS Next 2Y15.48%
EPS Next 3Y16.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.17%, PWR is not a good candidate for dividend investing.
The stock price of PWR dropped by -26.00% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.03, PWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.17, PWR pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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
PWR pays out 5.99% 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.
DP5.99%
EPS Next 2Y15.48%
EPS Next 3Y16.81%
246.02
+5.14 (+2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.39%
Inst Owner Change2.96%
Ins Owners0.81%
Ins Owner Change4.41%
Market Cap36.46B
Analysts80.65
Price Target354.36 (44.04%)
Short Float %2.75%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend0.33
Dividend Growth(5Y)20.51%
DP5.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.59%
Min EPS beat(2)0.11%
Max EPS beat(2)11.07%
EPS beat(4)3
Avg EPS beat(4)4.7%
Min EPS beat(4)-0.66%
Max EPS beat(4)11.07%
EPS beat(8)6
Avg EPS beat(8)4.35%
EPS beat(12)9
Avg EPS beat(12)4.1%
EPS beat(16)13
Avg EPS beat(16)4.43%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-1.87%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)0.9%
Revenue beat(8)6
Avg Revenue beat(8)3.45%
Revenue beat(12)10
Avg Revenue beat(12)3.61%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)-2.44%
PT rev (3m)5.04%
EPS NQ rev (1m)-2.82%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 23.83 | ||
| P/S | 1.54 | ||
| P/FCF | 24.68 | ||
| P/OCF | 17.52 | ||
| P/B | 5.55 | ||
| P/tB | 42.07 | ||
| EV/EBITDA | 19.36 |
EPS(TTM)8.97
EY3.65%
EPS(NY)10.32
Fwd EY4.2%
FCF(TTM)9.97
FCFY4.05%
OCF(TTM)14.04
OCFY5.71%
SpS159.74
BVpS44.32
TBVpS5.85
PEG (NY)1.82
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 13.78% | ||
| ROCE | 12.21% | ||
| ROIC | 9.4% | ||
| ROICexc | 9.88% | ||
| ROICexgc | 22.7% | ||
| OM | 5.47% | ||
| PM (TTM) | 3.82% | ||
| GM | 14.83% | ||
| FCFM | 6.24% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y4.36%
OM growth 5Y2.64%
PM growth 3Y0.69%
PM growth 5Y2.86%
GM growth 3Y-0.48%
GM growth 5Y2.34%
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 81.38% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 7.79 | ||
| Cash Conversion | 102.1% | ||
| Profit Quality | 163.25% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 4.66 |
F-Score7
WACC9.55%
ROIC/WACC0.98
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)138.08%
High Growth Momentum
Growth
EPS 1Y (TTM)25.1%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%44.12%
EPS Next Y15.09%
EPS Next 2Y15.48%
EPS Next 3Y16.81%
EPS Next 5Y16.01%
Revenue 1Y (TTM)13.36%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%13.3%
Revenue Next Year13.26%
Revenue Next 2Y11.47%
Revenue Next 3Y12.36%
Revenue Next 5Y12.35%
EBIT growth 1Y19.3%
EBIT growth 3Y27.5%
EBIT growth 5Y17.36%
EBIT Next Year95.18%
EBIT Next 3Y39.89%
EBIT Next 5Y28.77%
FCF growth 1Y30.28%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y32.06%
OCF growth 3Y52.89%
OCF growth 5Y31.63%