QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PWR - US74762E1029 - Common Stock
460.64 USD
-4.2 (-0.9%)
460.64 USD
0 (0%)
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 is valued quite expensive, but it does show an excellent growth. With these ratings, PWR could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year PWR was profitable.
In the past year PWR had a positive cash flow from operations.
In the past 5 years PWR has always been profitable.
Each year in the past 5 years PWR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.48%, PWR perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
PWR has a Return On Equity (12.13%) which is in line with its industry peers.
PWR has a Return On Invested Capital (7.46%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PWR is significantly below the industry average of 17.90%.
The 3 year average ROIC (7.28%) for PWR is below the current ROIC(7.46%), indicating increased profibility in the last year.
| 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.
PWR has a Operating Margin (5.60%) which is comparable to the rest of the industry.
PWR's Operating Margin has improved in the last couple of years.
PWR has a Gross Margin of 15.16%. This is in the lower half of the industry: PWR underperforms 60.00% of its industry peers.
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.
PWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.81 indicates that PWR is not in any danger for bankruptcy at the moment.
PWR has a Altman-Z score of 4.81. This is in the better half of the industry: PWR outperforms 76.36% 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 63.64% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that PWR is somewhat dependend on debt financing.
PWR's Debt to Equity ratio of 0.66 is in line compared to the rest of the industry. PWR outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.75
WACC9.97%
2.3 Liquidity
PWR has a Current Ratio of 1.34. 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 Current ratio (1.34) which is comparable to the rest of the industry.
PWR has a Quick 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.
PWR has a Quick ratio (1.30) which is in line with 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.
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 18.72%.
The Revenue has been growing by 14.34% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 13.78% on average over the next years. This is quite good.
EPS Next Y19.46%
EPS Next 2Y18.4%
EPS Next 3Y17.18%
EPS Next 5Y18.45%
Revenue Next Year18.08%
Revenue Next 2Y15.12%
Revenue Next 3Y14.08%
Revenue Next 5Y13.78%
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 43.75, which means the current valuation is very expensive for PWR.
Compared to the rest of the industry, the Price/Earnings ratio of PWR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PWR to the average of the S&P500 Index (26.49), we can say PWR is valued expensively.
PWR is valuated quite expensively with a Price/Forward Earnings ratio of 36.63.
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 expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.75 | ||
| Fwd PE | 36.63 |
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 61.82% 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 | 54.87 | ||
| EV/EBITDA | 30.82 |
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.
The decent profitability rating of PWR may justify a higher PE ratio.
PWR's earnings are expected to grow with 17.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)2.4
EPS Next 2Y18.4%
EPS Next 3Y17.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, PWR is not a good candidate for dividend investing.
PWR's Dividend Yield is a higher than the industry average which is at 1.65.
Compared to an average S&P500 Dividend Yield of 2.31, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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
PWR pays out 5.78% of its income as dividend. This is a 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 2Y18.4%
EPS Next 3Y17.18%
460.64
-4.2 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-1.2%
Ins Owners0.59%
Ins Owner Change-1.31%
Market Cap68.69B
Revenue(TTM)27.19B
Net Income(TTM)1.02B
Analysts77.22
Price Target480.24 (4.25%)
Short Float %2.91%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP5.78%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.83%
Min EPS beat(2)0.46%
Max EPS beat(2)1.21%
EPS beat(4)4
Avg EPS beat(4)4.54%
Min EPS beat(4)0.46%
Max EPS beat(4)11.07%
EPS beat(8)7
Avg EPS beat(8)3.48%
EPS beat(12)10
Avg EPS beat(12)3.81%
EPS beat(16)13
Avg EPS beat(16)4.01%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)2.11%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)5.24%
Revenue beat(8)6
Avg Revenue beat(8)2.21%
Revenue beat(12)10
Avg Revenue beat(12)3.29%
Revenue beat(16)14
Avg Revenue beat(16)3.7%
PT rev (1m)10.72%
PT rev (3m)13.09%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.75 | ||
| Fwd PE | 36.63 | ||
| P/S | 2.53 | ||
| P/FCF | 54.87 | ||
| P/OCF | 37.86 | ||
| P/B | 8.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.82 |
EPS(TTM)10.53
EY2.29%
EPS(NY)12.58
Fwd EY2.73%
FCF(TTM)8.4
FCFY1.82%
OCF(TTM)12.17
OCFY2.64%
SpS182.34
BVpS56.3
TBVpS-4.23
PEG (NY)2.25
PEG (5Y)2.4
Graham Number115.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 12.13% | ||
| ROCE | 9.7% | ||
| ROIC | 7.46% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 19.33% | ||
| OM | 5.6% | ||
| PM (TTM) | 3.74% | ||
| GM | 15.16% | ||
| FCFM | 4.6% |
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%
ROICexgc growth 3Y19.69%
ROICexgc 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-Score6
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 64.71% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 7.01 | ||
| Cash Conversion | 75.86% | ||
| Profit Quality | 122.97% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 4.81 |
F-Score6
WACC9.97%
ROIC/WACC0.75
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)30.48%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%22.43%
EPS Next Y19.46%
EPS Next 2Y18.4%
EPS Next 3Y17.18%
EPS Next 5Y18.45%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%17.53%
Revenue Next Year18.08%
Revenue Next 2Y15.12%
Revenue Next 3Y14.08%
Revenue Next 5Y13.78%
EBIT growth 1Y30.1%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year109.87%
EBIT Next 3Y38.88%
EBIT Next 5Y30.28%
FCF growth 1Y71.21%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y57.02%
OCF growth 3Y52.89%
OCF growth 5Y31.64%
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.
Can you provide the valuation status for QUANTA SERVICES INC?
ChartMill assigns a valuation rating of 2 / 10 to QUANTA SERVICES INC (PWR). This can be considered as Overvalued.
Can you provide the profitability details for QUANTA SERVICES INC?
QUANTA SERVICES INC (PWR) has a profitability rating of 6 / 10.
What is the valuation of QUANTA SERVICES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for QUANTA SERVICES INC (PWR) is 43.75 and the Price/Book (PB) ratio is 8.18.
What is the financial health of QUANTA SERVICES INC (PWR) stock?
The financial health rating of QUANTA SERVICES INC (PWR) is 5 / 10.