QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
376.01 USD
-2.23 (-0.59%)
377.27 USD
+1.26 (+0.34%)
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 52 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. PWR is valued quite expensive, but it does show an excellent growth. This makes PWR very considerable for growth investing!
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.
Each year in the past 5 years PWR had a positive operating cash flow.
1.2 Ratios
PWR has a Return On Assets (4.89%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 12.37%, PWR is in line with its industry, outperforming 59.62% of the companies in the same industry.
PWR has a better Return On Invested Capital (7.94%) than 63.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PWR is significantly below the industry average of 17.22%.
The last Return On Invested Capital (7.94%) for PWR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 12.37% | ||
| ROIC | 7.94% |
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 has a Profit Margin (3.73%) which is comparable to the rest of the industry.
PWR's Profit Margin has improved in the last couple of years.
PWR has a Operating Margin (5.51%) 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 15.04% is in line compared to the rest of the industry. PWR outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of PWR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.51% | ||
| PM (TTM) | 3.73% | ||
| GM | 15.04% |
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
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.
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 4.92 indicates that PWR is not in any danger for bankruptcy at the moment.
The Altman-Z score of PWR (4.92) is better than 75.00% of its industry peers.
The Debt to FCF ratio of PWR is 3.49, which is a good value as it means it would take PWR, 3.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.49, PWR is in line with its industry, outperforming 59.62% of the companies in the same industry.
PWR has a Debt/Equity ratio of 0.59. This is a neutral value indicating PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 4.92 |
ROIC/WACC0.81
WACC9.79%
2.3 Liquidity
PWR has a Current Ratio of 1.37. 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 better Current ratio (1.37) than 61.54% of its industry peers.
PWR has a Quick Ratio of 1.32. 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 of 1.32. This is comparable to the rest of the industry: PWR outperforms 59.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
PWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.70%, 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 18.26%.
The Revenue has been growing by 14.34% on average over the past years. This is quite good.
EPS 1Y (TTM)30.7%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%30.53%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%21.07%
3.2 Future
The Earnings Per Share is expected to grow by 16.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.02% on average over the next years. This is quite good.
EPS Next Y19.09%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
EPS Next 5Y16.99%
Revenue Next Year16.48%
Revenue Next 2Y14.15%
Revenue Next 3Y13.24%
Revenue Next 5Y13.02%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.90, which means the current valuation is very expensive for PWR.
PWR's Price/Earnings ratio is in line with the industry average.
PWR is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.18 indicates a quite expensive valuation of PWR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PWR is on the same level as its industry peers.
PWR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.9 | ||
| Fwd PE | 30.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PWR indicates a slightly more expensive valuation: PWR is more expensive than 61.54% of the companies listed in the same industry.
PWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.25 | ||
| EV/EBITDA | 26.71 |
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 17.02% in the coming years.
PEG (NY)1.99
PEG (5Y)2.08
EPS Next 2Y17.86%
EPS Next 3Y17.02%
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 1.57, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
The dividend of PWR is nicely growing with an annual growth rate of 17.70%!
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
5.92% of the earnings are spent on dividend by PWR. This is a low number and sustainable payout ratio.
The dividend of PWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.92%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
376.01
-2.23 (-0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change2.69%
Ins Owners0.61%
Ins Owner Change0.25%
Market Cap56.03B
Analysts76
Price Target424.13 (12.8%)
Short Float %3.02%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP5.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.94%
Min EPS beat(2)0.46%
Max EPS beat(2)5.43%
EPS beat(4)4
Avg EPS beat(4)4.27%
Min EPS beat(4)0.11%
Max EPS beat(4)11.07%
EPS beat(8)7
Avg EPS beat(8)3.97%
EPS beat(12)9
Avg EPS beat(12)3.64%
EPS beat(16)13
Avg EPS beat(16)3.98%
Revenue beat(2)2
Avg Revenue beat(2)3.68%
Min Revenue beat(2)2.11%
Max Revenue beat(2)5.24%
Revenue beat(4)2
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)5.24%
Revenue beat(8)6
Avg Revenue beat(8)2.66%
Revenue beat(12)10
Avg Revenue beat(12)3.13%
Revenue beat(16)13
Avg Revenue beat(16)3.37%
PT rev (1m)1.78%
PT rev (3m)18.6%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)2.35%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.9 | ||
| Fwd PE | 30.18 | ||
| P/S | 2.15 | ||
| P/FCF | 41.25 | ||
| P/OCF | 28.14 | ||
| P/B | 7.13 | ||
| P/tB | 216.44 | ||
| EV/EBITDA | 26.71 |
EPS(TTM)9.92
EY2.64%
EPS(NY)12.46
Fwd EY3.31%
FCF(TTM)9.12
FCFY2.42%
OCF(TTM)13.36
OCFY3.55%
SpS174.84
BVpS52.73
TBVpS1.74
PEG (NY)1.99
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 12.37% | ||
| ROCE | 10.32% | ||
| ROIC | 7.94% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 19.04% | ||
| OM | 5.51% | ||
| PM (TTM) | 3.73% | ||
| GM | 15.04% | ||
| FCFM | 5.21% |
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%
ROICexcg growth 3Y19.69%
ROICexcg 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-Score5
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 75.98% | ||
| Cap/Sales | 2.43% | ||
| Interest Coverage | 7.51 | ||
| Cash Conversion | 87.74% | ||
| Profit Quality | 139.76% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 4.92 |
F-Score5
WACC9.79%
ROIC/WACC0.81
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)30.7%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%30.53%
EPS Next Y19.09%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
EPS Next 5Y16.99%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%21.07%
Revenue Next Year16.48%
Revenue Next 2Y14.15%
Revenue Next 3Y13.24%
Revenue Next 5Y13.02%
EBIT growth 1Y25.78%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.01%
EBIT Next 3Y37.8%
EBIT Next 5Y29.05%
FCF growth 1Y91.67%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y82.26%
OCF growth 3Y52.89%
OCF growth 5Y31.64%