QUANTA SERVICES INC (PWR)
US74762E1029 - Common Stock
Taking everything into account, PWR scores 6 out of 10 in our fundamental rating. PWR was compared to 43 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of PWR get a neutral evaluation. Nothing too spectacular is happening here. PWR shows excellent growth, but is valued quite expensive already. These ratings could make PWR a good candidate 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.
Each year in the past 5 years PWR has been profitable.
In the past 5 years PWR always reported a positive cash flow from operatings.
1.2 Ratios
PWR's Return On Assets of 4.59% is fine compared to the rest of the industry. PWR outperforms 69.77% of its industry peers.
PWR's Return On Equity of 11.87% is fine compared to the rest of the industry. PWR outperforms 72.09% of its industry peers.
PWR has a better Return On Invested Capital (7.39%) than 67.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PWR is below the industry average of 8.46%.
The 3 year average ROIC (6.15%) for PWR is below the current ROIC(7.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 11.87% | ||
| ROIC | 7.39% |
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
With a Profit Margin value of 3.57%, PWR perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
PWR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.20%, PWR perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
In the last couple of years the Operating Margin of PWR has remained more or less at the same level.
With a Gross Margin value of 14.06%, PWR perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
PWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.2% | ||
| PM (TTM) | 3.57% | ||
| GM | 14.07% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PWR 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.
PWR has a better debt/assets ratio than last year.
2.2 Solvency
PWR has an Altman-Z score of 4.57. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
PWR has a better Altman-Z score (4.57) than 81.40% of its industry peers.
The Debt to FCF ratio of PWR is 3.70, which is a good value as it means it would take PWR, 3.70 years of fcf income to pay off all of its debts.
PWR's Debt to FCF ratio of 3.70 is fine compared to the rest of the industry. PWR outperforms 76.74% of its industry peers.
PWR has a Debt/Equity ratio of 0.58. This is a neutral value indicating PWR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, PWR is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.77
WACC9.63%
2.3 Liquidity
PWR has a Current Ratio of 1.47. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.47, PWR is doing good in the industry, outperforming 67.44% 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.
With a decent Quick ratio value of 1.44, PWR is doing good in the industry, outperforming 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.82% over the past year.
The Earnings Per Share has been growing by 20.43% on average over the past years. This is a very strong growth
PWR shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.51%.
The Revenue has been growing by 13.33% on average over the past years. This is quite good.
EPS 1Y (TTM)17.82%
EPS 3Y23.25%
EPS 5Y20.43%
EPS Q2Q%13.71%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y23.07%
Revenue growth 5Y13.33%
Sales Q2Q%13.62%
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 14.14% yearly.
Based on estimates for the next years, PWR will show a quite strong growth in Revenue. The Revenue will grow by 9.77% on average per year.
EPS Next Y18.76%
EPS Next 2Y17.02%
EPS Next 3Y15.78%
EPS Next 5Y14.14%
Revenue Next Year12.54%
Revenue Next 2Y10.74%
Revenue Next 3Y10.09%
Revenue Next 5Y9.77%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PWR is valuated quite expensively with a Price/Earnings ratio of 37.59.
The rest of the industry has a similar Price/Earnings ratio as PWR.
PWR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.05.
PWR is valuated quite expensively with a Price/Forward Earnings ratio of 28.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PWR indicates a slightly more expensive valuation: PWR is more expensive than 60.47% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.07. PWR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 28.1 |
4.2 Price Multiples
65.12% of the companies in the same industry are cheaper than PWR, based on the Enterprise Value to EBITDA ratio.
PWR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.63 | ||
| EV/EBITDA | 25.8 |
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.
PWR's earnings are expected to grow with 15.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)1.84
EPS Next 2Y17.02%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.13%, PWR is not a good candidate for dividend investing.
PWR's Dividend Yield is a higher than the industry average which is at 0.88.
With a Dividend Yield of 0.13, PWR pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
On average, the dividend of PWR grows each year by 20.51%, which is quite nice.
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 6.41% 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.
DP6.41%
EPS Next 2Y17.02%
EPS Next 3Y15.78%
QUANTA SERVICES INC
NYSE:PWR (5/31/2024, 7:04:00 PM)
After market: 275.94 0 (0%)275.94
-3.82 (-1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 28.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 11.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.2% | ||
| PM (TTM) | 3.57% | ||
| GM | 14.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.82%
EPS 3Y23.25%
EPS 5Y
EPS Q2Q%
EPS Next Y18.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.51%
Revenue growth 3Y23.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y