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 41 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. PWR shows excellent growth, but is valued quite expensive already. This makes PWR very considerable for growth investing!
1. Profitability
1.1 Basic Checks
PWR had positive earnings in the past year.
PWR had a positive operating cash flow in the past year.
PWR had positive earnings in each of the past 5 years.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PWR has a better Return On Assets (4.59%) than 70.00% of its industry peers.
PWR has a Return On Equity of 11.87%. This is in the better half of the industry: PWR outperforms 72.50% of its industry peers.
PWR has a Return On Invested Capital of 7.39%. This is in the better half of the industry: PWR outperforms 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PWR is below the industry average of 8.37%.
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
PWR has a Profit Margin of 3.57%. This is comparable to the rest of the industry: PWR outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of PWR has grown nicely.
With a Operating Margin value of 5.20%, PWR perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
PWR's Operating Margin has been stable in the last couple of years.
PWR has a Gross Margin of 14.06%. This is comparable to the rest of the industry: PWR outperforms 45.00% of its industry peers.
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.
Compared to 1 year ago, PWR has more shares outstanding
The number of shares outstanding for PWR has been increased compared to 5 years ago.
PWR has a better debt/assets ratio than last year.
2.2 Solvency
PWR has an Altman-Z score of 4.44. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PWR (4.44) is better than 85.00% of its industry peers.
PWR has a debt to FCF ratio of 3.70. This is a good value and a sign of high solvency as PWR would need 3.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.70, PWR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
PWR has a Debt/Equity ratio of 0.58. This is a neutral value indicating PWR is somewhat dependend on debt financing.
PWR's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. PWR outperforms 57.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 4.44 |
ROIC/WACC0.78
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.47 indicates that PWR should not have too much problems paying its short term obligations.
The Current ratio of PWR (1.47) is better than 65.00% of its industry peers.
A Quick Ratio of 1.44 indicates that PWR should not have too much problems paying its short term obligations.
The Quick ratio of PWR (1.44) is better than 70.00% of its industry peers.
| 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 12.74% 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
Looking at the last year, PWR shows a very strong growth in Revenue. The Revenue has grown by 22.30%.
PWR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.33% yearly.
EPS 1Y (TTM)12.74%
EPS 3Y23.25%
EPS 5Y20.43%
EPS growth Q2Q21.43%
Revenue 1Y (TTM)22.3%
Revenue growth 3Y23.07%
Revenue growth 5Y13.33%
Revenue growth Q2Q30.96%
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 14.14% on average per year.
The Revenue is expected to grow by 9.77% on average over the next years. This is quite good.
EPS Next Y17.7%
EPS Next 2Y16.2%
EPS Next 3Y15.06%
EPS Next 5Y14.14%
Revenue Next Year11.68%
Revenue Next 2Y10.23%
Revenue Next 3Y9.89%
Revenue Next 5Y9.77%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 36.96.
The rest of the industry has a similar Price/Earnings ratio as PWR.
Compared to an average S&P500 Price/Earnings ratio of 28.05, PWR is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 31.40, the valuation of PWR can be described as expensive.
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 70.00% of the companies listed in the same industry.
PWR is valuated expensively when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.96 | ||
| Fwd PE | 31.4 |
4.2 Price Multiples
67.50% 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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.21 | ||
| EV/EBITDA | 24.52 |
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.
A more expensive valuation may be justified as PWR's earnings are expected to grow with 15.06% in the coming years.
PEG (NY)2.09
PEG (5Y)1.81
EPS Next 2Y16.2%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.13%, which is pretty low.
Compared to an average industry Dividend Yield of 0.81, PWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
The dividend of PWR is nicely growing with an annual growth rate of 20.51%!
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
6.41% 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.
DP6.41%
EPS Next 2Y16.2%
EPS Next 3Y15.06%
QUANTA SERVICES INC
NYSE:PWR (5/8/2024, 7:14:26 PM)
After market: 264.98 0 (0%)264.98
-1.9 (-0.71%)
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 Cap38.79B
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(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 36.96 | ||
| Fwd PE | 31.4 | ||
| 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)2.09
PEG (5Y)1.81
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)
Growth
EPS 1Y (TTM)12.74%
EPS 3Y23.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.3%
Revenue growth 3Y23.07%
Revenue growth 5Y
Revenue growth 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