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Why QUANTA SERVICES INC (NYSE:PWR) qualifies as a quality stock.

By Mill Chart

Last update: Apr 11, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if QUANTA SERVICES INC (NYSE:PWR) is suited for quality investing. Investors should of course do their own research, but we spotted QUANTA SERVICES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of QUANTA SERVICES INC

  • QUANTA SERVICES INC has demonstrated significant revenue growth over the past 5 years, with a 13.33% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of QUANTA SERVICES INC stands at 18.85%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 3.7, QUANTA SERVICES INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • QUANTA SERVICES INC exhibits impressive Profit Quality (5-year) with a 119.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • QUANTA SERVICES INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.45%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • QUANTA SERVICES INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:PWR

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to PWR. PWR was compared to 41 industry peers in the Construction & Engineering industry. PWR has an average financial health and profitability rating. PWR is valued quite expensive, but it does show an excellent growth. These ratings could make PWR a good candidate for growth investing.

For an up to date full fundamental analysis you can check the fundamental report of PWR

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.