QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
NYSE:PWR - New York Stock Exchange, Inc. - US74762E1029 - Common Stock - Currency: USD
Overall PWR gets a fundamental rating of 6 out of 10. We evaluated PWR against 52 industry peers in the Construction & Engineering industry. While PWR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
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 better Return On Assets (4.86%) than 65.38% of its industry peers.
The Return On Equity of PWR (12.48%) is better than 65.38% of its industry peers.
PWR has a better Return On Invested Capital (8.07%) than 67.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PWR is significantly below the industry average of 16.60%.
The last Return On Invested Capital (8.07%) for PWR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 12.48% | ||
| ROIC | 8.07% |
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 (3.74%) is better than 65.38% of its industry peers.
PWR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.54%, PWR perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
PWR's Operating Margin has improved in the last couple of years.
The Gross Margin of PWR (14.96%) 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 | 5.54% | ||
| PM (TTM) | 3.74% | ||
| GM | 14.96% |
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
PWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PWR has more shares outstanding than it did 1 year ago.
PWR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PWR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.81 indicates that PWR is not in any danger for bankruptcy at the moment.
PWR's Altman-Z score of 4.81 is fine compared to the rest of the industry. PWR outperforms 71.15% of its industry peers.
PWR has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as PWR would need 3.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.10, PWR is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.81
WACC9.93%
2.3 Liquidity
A Current Ratio of 1.31 indicates that PWR should not have too much problems paying its short term obligations.
PWR has a Current ratio of 1.31. This is comparable to the rest of the industry: PWR outperforms 53.85% of its industry peers.
A Quick Ratio of 1.26 indicates that PWR should not have too much problems paying its short term obligations.
PWR has a Quick ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.25% over the past year.
Measured over the past years, PWR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.25% on average per year.
PWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.77%.
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)27.25%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%26.24%
Revenue 1Y (TTM)15.77%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%23.88%
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 14.68% on average per year.
Based on estimates for the next years, PWR will show a quite strong growth in Revenue. The Revenue will grow by 11.53% on average per year.
EPS Next Y16.62%
EPS Next 2Y15.37%
EPS Next 3Y16.18%
EPS Next 5Y14.68%
Revenue Next Year13.79%
Revenue Next 2Y11.43%
Revenue Next 3Y11.76%
Revenue Next 5Y11.53%
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.
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
PWR is valuated quite expensively with a Price/Earnings ratio of 38.36.
The rest of the industry has a similar Price/Earnings ratio as PWR.
When comparing the Price/Earnings ratio of PWR to the average of the S&P500 Index (26.31), we can say PWR is valued slightly more expensively.
PWR is valuated quite expensively with a Price/Forward Earnings ratio of 30.01.
PWR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, PWR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.36 | ||
| Fwd PE | 30.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PWR.
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 | 37.08 | ||
| EV/EBITDA | 26.39 |
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 16.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.31
PEG (5Y)2.1
EPS Next 2Y15.37%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.11%, which is pretty low.
Compared to an average industry Dividend Yield of 1.78, PWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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
6.01% of the earnings are spent on dividend by PWR. This is a low number and sustainable payout ratio.
The dividend of PWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.01%
EPS Next 2Y15.37%
EPS Next 3Y16.18%
358.26
-0.39 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.39%
Inst Owner Change-0.85%
Ins Owners0.81%
Ins Owner Change4.48%
Market Cap53.09B
Analysts80
Price Target357.61 (-0.18%)
Short Float %3.5%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP6.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.25%
Min EPS beat(2)5.43%
Max EPS beat(2)11.07%
EPS beat(4)3
Avg EPS beat(4)3.99%
Min EPS beat(4)-0.66%
Max EPS beat(4)11.07%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)9
Avg EPS beat(12)3.6%
EPS beat(16)13
Avg EPS beat(16)4.02%
Revenue beat(2)1
Avg Revenue beat(2)1.69%
Min Revenue beat(2)-1.87%
Max Revenue beat(2)5.24%
Revenue beat(4)2
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)5.24%
Revenue beat(8)6
Avg Revenue beat(8)3.17%
Revenue beat(12)10
Avg Revenue beat(12)3.27%
Revenue beat(16)12
Avg Revenue beat(16)3.21%
PT rev (1m)1.44%
PT rev (3m)0.92%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)1.63%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.36 | ||
| Fwd PE | 30.01 | ||
| P/S | 2.13 | ||
| P/FCF | 37.08 | ||
| P/OCF | 25.45 | ||
| P/B | 7.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.39 |
EPS(TTM)9.34
EY2.61%
EPS(NY)11.94
Fwd EY3.33%
FCF(TTM)9.66
FCFY2.7%
OCF(TTM)14.08
OCFY3.93%
SpS167.84
BVpS50.31
TBVpS-0.42
PEG (NY)2.31
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 12.48% | ||
| ROCE | 10.49% | ||
| ROIC | 8.07% | ||
| ROICexc | 8.4% | ||
| ROICexgc | 20.77% | ||
| OM | 5.54% | ||
| PM (TTM) | 3.74% | ||
| GM | 14.96% | ||
| FCFM | 5.76% |
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-Score4
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.1 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 83.54% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 7.06 | ||
| Cash Conversion | 96.47% | ||
| Profit Quality | 153.84% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 4.81 |
F-Score4
WACC9.93%
ROIC/WACC0.81
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)27.25%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%26.24%
EPS Next Y16.62%
EPS Next 2Y15.37%
EPS Next 3Y16.18%
EPS Next 5Y14.68%
Revenue 1Y (TTM)15.77%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%23.88%
Revenue Next Year13.79%
Revenue Next 2Y11.43%
Revenue Next 3Y11.76%
Revenue Next 5Y11.53%
EBIT growth 1Y23.89%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year104.6%
EBIT Next 3Y36.36%
EBIT Next 5Y26.97%
FCF growth 1Y109.22%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y92.54%
OCF growth 3Y52.89%
OCF growth 5Y31.64%