QUANTA SERVICES INC (PWR)

US74762E1029 - Common Stock

326.52  +11.02 (+3.49%)

After market: 326.52 0 (0%)

Fundamental Rating

6

Overall PWR gets a fundamental rating of 6 out of 10. We evaluated PWR against 44 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. With these ratings, PWR could be worth investigating further for growth investing!.



6

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.
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 4.99%. This is in the better half of the industry: PWR outperforms 71.43% of its industry peers.
PWR's Return On Equity of 12.92% is fine compared to the rest of the industry. PWR outperforms 69.05% of its industry peers.
With a decent Return On Invested Capital value of 7.97%, PWR is doing good in the industry, outperforming 64.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PWR is significantly below the industry average of 11.66%.
The 3 year average ROIC (6.15%) for PWR is below the current ROIC(7.97%), indicating increased profibility in the last year.
Industry RankSector 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

The Profit Margin of PWR (3.54%) is better than 61.90% of its industry peers.
PWR's Profit Margin has improved in the last couple of years.
PWR has a Operating Margin (5.11%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PWR has remained more or less at the same level.
The Gross Margin of PWR (14.15%) is worse than 64.29% of its industry peers.
PWR's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

6

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
The number of shares outstanding for PWR has been increased compared to 5 years ago.
PWR has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 5.05 indicates that PWR is not in any danger for bankruptcy at the moment.
The Altman-Z score of PWR (5.05) is better than 83.33% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.32, PWR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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 50.00% of its industry peers.
Although PWR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 2.32
Altman-Z 5.05
ROIC/WACC0.67
WACC11.82%

2.3 Liquidity

A Current Ratio of 1.47 indicates that PWR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, PWR perfoms like the industry average, outperforming 59.52% 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 64.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 1.44

7

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%.
The Revenue has been growing by 13.33% on average over the past years. This is quite good.
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

PWR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.14% yearly.
PWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.51% yearly.
EPS Next Y22.01%
EPS Next 2Y19.73%
EPS Next 3Y18.14%
EPS Next 5Y18.14%
Revenue Next Year17.21%
Revenue Next 2Y14.87%
Revenue Next 3Y13.31%
Revenue Next 5Y13.51%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 40.46, which means the current valuation is very expensive for PWR.
The rest of the industry has a similar Price/Earnings ratio as PWR.
Compared to an average S&P500 Price/Earnings ratio of 27.41, PWR is valued a bit more expensive.
The Price/Forward Earnings ratio is 31.77, which means the current valuation is very expensive for PWR.
PWR's Price/Forward Earnings 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, PWR is valued a bit more expensive.
Industry RankSector Rank
PE 40.46
Fwd PE 31.77

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PWR is valued a bit more expensive than the industry average as 69.05% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as PWR.
Industry RankSector Rank
P/FCF 26.67
EV/EBITDA 26.6

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 18.14% in the coming years.
PEG (NY)1.84
PEG (5Y)1.98
EPS Next 2Y19.73%
EPS Next 3Y18.14%

4

5. Dividend

5.1 Amount

PWR has a yearly dividend return of 0.13%, which is pretty low.
PWR's Dividend Yield is a higher than the industry average which is at 0.65.
Compared to an average S&P500 Dividend Yield of 2.33, PWR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.13%

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 6.47% of its income as dividend. This is a sustainable payout ratio.
PWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.47%
EPS Next 2Y19.73%
EPS Next 3Y18.14%

QUANTA SERVICES INC

NYSE:PWR (1/3/2025, 8:04:00 PM)

After market: 326.52 0 (0%)

326.52

+11.02 (+3.49%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners94.1%
Inst Owner Change-0.38%
Ins Owners0.81%
Ins Owner Change-6.14%
Market Cap48.20B
Analysts80.71
Price Target347.89 (6.54%)
Short Float %2.89%
Short Ratio4.5
Dividend
Industry RankSector Rank
Dividend Yield 0.13%
Dividend Growth(5Y)20.51%
DP6.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02 2025-01-02 (0.1)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.28%
Min EPS beat(2)-0.66%
Max EPS beat(2)0.11%
EPS beat(4)3
Avg EPS beat(4)2.43%
Min EPS beat(4)-0.66%
Max EPS beat(4)8.29%
EPS beat(8)6
Avg EPS beat(8)3.44%
EPS beat(12)9
Avg EPS beat(12)3.84%
EPS beat(16)13
Avg EPS beat(16)5.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)0.58%
Revenue beat(4)3
Avg Revenue beat(4)2.48%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)10.53%
Revenue beat(8)7
Avg Revenue beat(8)3.96%
Revenue beat(12)11
Avg Revenue beat(12)4.29%
Revenue beat(16)11
Avg Revenue beat(16)2.82%
PT rev (1m)3.12%
PT rev (3m)17.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.48%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.36%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.42%
Valuation
Industry RankSector Rank
PE 40.46
Fwd PE 31.77
P/S 2.1
P/FCF 26.67
P/OCF 20.31
P/B 7.68
P/tB 55.79
EV/EBITDA 26.6
EPS(TTM)8.07
EY2.47%
EPS(NY)10.28
Fwd EY3.15%
FCF(TTM)12.24
FCFY3.75%
OCF(TTM)16.07
OCFY4.92%
SpS155.16
BVpS42.49
TBVpS5.85
PEG (NY)1.84
PEG (5Y)1.98
Profitability
Industry RankSector Rank
ROA 4.99%
ROE 12.92%
ROCE 10.62%
ROIC 7.97%
ROICexc 9.02%
ROICexgc 20.3%
OM 5.11%
PM (TTM) 3.54%
GM 14.15%
FCFM 7.89%
ROA(3y)4%
ROA(5y)4.43%
ROE(3y)10.17%
ROE(5y)10.14%
ROIC(3y)6.15%
ROIC(5y)6.53%
ROICexc(3y)6.65%
ROICexc(5y)6.92%
ROICexgc(3y)14.83%
ROICexgc(5y)13.91%
ROCE(3y)8.2%
ROCE(5y)8.71%
ROICexcg growth 3Y14.65%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y4.95%
ROICexc growth 5Y0.18%
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%
F-Score4
Asset Turnover1.41
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 2.32
Debt/EBITDA 1.97
Cap/Depr 82%
Cap/Sales 2.47%
Interest Coverage 6.46
Cash Conversion 127.54%
Profit Quality 222.91%
Current Ratio 1.47
Quick Ratio 1.44
Altman-Z 5.05
F-Score4
WACC11.82%
ROIC/WACC0.67
Cap/Depr(3y)76.81%
Cap/Depr(5y)82.07%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.42%
Profit Quality(3y)111.78%
Profit Quality(5y)118.58%
High Growth Momentum
Growth
EPS 1Y (TTM)18.5%
EPS 3Y23.25%
EPS 5Y20.43%
EPS Q2Q%21.43%
EPS Next Y22.01%
EPS Next 2Y19.73%
EPS Next 3Y18.14%
EPS Next 5Y18.14%
Revenue 1Y (TTM)17.36%
Revenue growth 3Y23.07%
Revenue growth 5Y13.33%
Sales Q2Q%15.52%
Revenue Next Year17.21%
Revenue Next 2Y14.87%
Revenue Next 3Y13.31%
Revenue Next 5Y13.51%
EBIT growth 1Y12.79%
EBIT growth 3Y22.78%
EBIT growth 5Y13.45%
EBIT Next Year81.53%
EBIT Next 3Y32.68%
EBIT Next 5Y27.57%
FCF growth 1Y490.37%
FCF growth 3Y9.85%
FCF growth 5Y86.1%
OCF growth 1Y197.66%
OCF growth 3Y12.19%
OCF growth 5Y34.44%