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

In this article we will dive into QUANTA SERVICES INC (NYSE:PWR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed QUANTA SERVICES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:PWR.

• The 5-year revenue growth of QUANTA SERVICES INC has been remarkable, with 13.33% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 18.85%, QUANTA SERVICES INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of QUANTA SERVICES INC stands at 3.7, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of QUANTA SERVICES INC stands at 119.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• QUANTA SERVICES INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.45% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• QUANTA SERVICES INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:PWR telling us.

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. 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. This makes PWR very considerable for growth investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.