QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
388.58 USD
-2.07 (-0.53%)
388.572 USD
-0.01 (0%)
PWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 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 is valued quite expensive, but it does show an excellent growth. These ratings could make PWR a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year PWR was profitable.
PWR had a positive operating cash flow in the past year.
PWR had positive earnings in each of the past 5 years.
In the past 5 years PWR always reported a positive cash flow from operatings.
1.2 Ratios
PWR has a Return On Assets (4.89%) which is in line with its industry peers.
PWR has a Return On Equity (12.37%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.94%, PWR is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PWR is significantly below the industry average of 17.22%.
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
The Profit Margin of PWR (3.73%) is comparable to the rest of the industry.
PWR's Profit Margin has improved in the last couple of years.
PWR has a Operating Margin (5.51%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PWR has grown nicely.
PWR has a Gross Margin of 15.04%. This is comparable to the rest of the industry: PWR outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of PWR has grown nicely.
| 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 5.01. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
PWR has a Altman-Z score of 5.01. This is in the better half of the industry: PWR outperforms 75.00% 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 comparable to the rest of the industry.
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 of 0.59. This is comparable to the rest of the industry: PWR outperforms 55.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 5.01 |
ROIC/WACC0.8
WACC9.91%
2.3 Liquidity
PWR has a Current Ratio of 1.37. 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 of 1.37. This is in the better half of the industry: PWR outperforms 61.54% 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 (1.32) which is in line with 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.
PWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
Looking at the last year, PWR shows a quite strong growth in Revenue. The Revenue has grown by 18.26% in the last year.
The Revenue has been growing by 14.34% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 16.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.02% on average over the next years. This is quite good.
EPS Next Y19.09%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
EPS Next 5Y16.99%
Revenue Next Year16.48%
Revenue Next 2Y14.15%
Revenue Next 3Y13.24%
Revenue Next 5Y13.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.17, the valuation of PWR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PWR.
PWR is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.18 indicates a quite expensive valuation of PWR.
PWR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PWR to the average of the S&P500 Index (22.86), we can say PWR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.17 | ||
| Fwd PE | 31.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PWR is valued a bit more expensive than 61.54% of the companies in the same industry.
PWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.63 | ||
| EV/EBITDA | 27.52 |
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 17.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)2.15
EPS Next 2Y17.86%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.10%, which is pretty low.
PWR's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 2.38, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
On average, the dividend of PWR grows each year by 17.70%, which is quite nice.
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 2Y17.86%
EPS Next 3Y17.02%
388.58
-2.07 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change2.69%
Ins Owners0.61%
Ins Owner Change0.25%
Market Cap57.90B
Analysts76
Price Target424.13 (9.15%)
Short Float %3.02%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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)1.78%
PT rev (3m)18.6%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)2.35%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.17 | ||
| Fwd PE | 31.18 | ||
| P/S | 2.22 | ||
| P/FCF | 42.63 | ||
| P/OCF | 29.08 | ||
| P/B | 7.37 | ||
| P/tB | 223.68 | ||
| EV/EBITDA | 27.52 |
EPS(TTM)9.92
EY2.55%
EPS(NY)12.46
Fwd EY3.21%
FCF(TTM)9.12
FCFY2.35%
OCF(TTM)13.36
OCFY3.44%
SpS174.84
BVpS52.73
TBVpS1.74
PEG (NY)2.05
PEG (5Y)2.15
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%
ROICexcg growth 3Y19.69%
ROICexcg 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 | 5.01 |
F-Score5
WACC9.91%
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 Y19.09%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
EPS Next 5Y16.99%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%21.07%
Revenue Next Year16.48%
Revenue Next 2Y14.15%
Revenue Next 3Y13.24%
Revenue Next 5Y13.02%
EBIT growth 1Y25.78%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.01%
EBIT Next 3Y37.8%
EBIT Next 5Y29.05%
FCF growth 1Y91.67%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y82.26%
OCF growth 3Y52.89%
OCF growth 5Y31.64%