QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
412.21 USD
-25.22 (-5.77%)
412.21 USD
0 (0%)
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 55 industry peers in the Construction & Engineering industry. PWR has an average financial health and profitability rating. PWR is valued quite expensively, but it does show have an excellent growth rating. These ratings could make PWR a good candidate 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.
Each year in the past 5 years PWR has been profitable.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PWR has a Return On Assets of 4.89%. This is comparable to the rest of the industry: PWR outperforms 60.00% of its industry peers.
The Return On Equity of PWR (12.37%) is comparable to the rest of the industry.
PWR has a better Return On Invested Capital (7.94%) than 63.64% 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 17.10%.
The 3 year average ROIC (7.28%) for PWR is below the current ROIC(7.94%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 5.51%, PWR is in line with its industry, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Operating Margin of PWR has grown nicely.
The Gross Margin of PWR (15.04%) is comparable to the rest of the industry.
PWR's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWR is destroying value.
Compared to 1 year ago, PWR has more shares outstanding
Compared to 5 years ago, PWR has more shares outstanding
Compared to 1 year ago, PWR has an improved debt to assets ratio.
2.2 Solvency
PWR has an Altman-Z score of 5.36. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PWR (5.36) is better than 74.55% 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.
The Debt to FCF ratio of PWR (3.49) is better than 63.64% of its industry peers.
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 | 5.36 |
ROIC/WACC0.8
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.37 indicates that PWR should not have too much problems paying its short term obligations.
PWR has a better Current ratio (1.37) than 63.64% of its industry peers.
A Quick Ratio of 1.32 indicates that PWR should not have too much problems paying its short term obligations.
PWR has a Quick ratio of 1.32. This is in the better half of the industry: PWR outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.70% over the past year.
The Earnings Per Share has been growing by 18.25% on average over the past years. This is quite good.
Looking at the last year, PWR shows a quite strong growth in Revenue. The Revenue has grown by 18.26% in the last year.
PWR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.34% yearly.
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
Based on estimates for the next years, PWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.21% on average per year.
The Revenue is expected to grow by 13.29% on average over the next years. This is quite good.
EPS Next Y19%
EPS Next 2Y17.77%
EPS Next 3Y17.02%
EPS Next 5Y17.21%
Revenue Next Year16.5%
Revenue Next 2Y14.22%
Revenue Next 3Y13.27%
Revenue Next 5Y13.29%
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
A Price/Earnings ratio of 41.55 indicates a quite expensive valuation of PWR.
PWR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.77, PWR is valued a bit more expensive.
A Price/Forward Earnings ratio of 33.13 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.
When comparing the Price/Forward Earnings ratio of PWR to the average of the S&P500 Index (23.23), we can say PWR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.55 | ||
| Fwd PE | 33.13 |
4.2 Price Multiples
PWR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PWR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.22 | ||
| EV/EBITDA | 30.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 17.02% in the coming years.
PEG (NY)2.19
PEG (5Y)2.28
EPS Next 2Y17.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.09%, which is pretty low.
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 2.36, 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
5.92% of the earnings are spent on dividend by PWR. This is a low number and sustainable payout ratio.
PWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.92%
EPS Next 2Y17.77%
EPS Next 3Y17.02%
412.21
-25.22 (-5.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-1.56%
Ins Owners0.61%
Ins Owner Change0.25%
Market Cap61.42B
Revenue(TTM)26.05B
Net Income(TTM)971.81M
Analysts76.67
Price Target427.03 (3.6%)
Short Float %3.18%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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)0.68%
PT rev (3m)15.52%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)3.44%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.55 | ||
| Fwd PE | 33.13 | ||
| P/S | 2.36 | ||
| P/FCF | 45.22 | ||
| P/OCF | 30.85 | ||
| P/B | 7.82 | ||
| P/tB | 237.28 | ||
| EV/EBITDA | 30.59 |
EPS(TTM)9.92
EY2.41%
EPS(NY)12.44
Fwd EY3.02%
FCF(TTM)9.12
FCFY2.21%
OCF(TTM)13.36
OCFY3.24%
SpS174.84
BVpS52.73
TBVpS1.74
PEG (NY)2.19
PEG (5Y)2.28
Graham Number108.49
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%
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-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 | 5.36 |
F-Score5
WACC9.87%
ROIC/WACC0.8
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%
EPS Next 2Y17.77%
EPS Next 3Y17.02%
EPS Next 5Y17.21%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%21.07%
Revenue Next Year16.5%
Revenue Next 2Y14.22%
Revenue Next 3Y13.27%
Revenue Next 5Y13.29%
EBIT growth 1Y25.78%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.61%
EBIT Next 3Y38.24%
EBIT Next 5Y29.26%
FCF growth 1Y91.67%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y82.26%
OCF growth 3Y52.89%
OCF growth 5Y31.64%