QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
NYSE:PWR - New York Stock Exchange, Inc. - US74762E1029 - Common Stock - Currency: USD
Taking everything into account, PWR scores 6 out of 10 in our fundamental rating. PWR was compared to 49 industry peers in the Construction & Engineering industry. While PWR has a great profitability rating, there are some minor concerns on its financial health. PWR is valued quite expensive, but it does show an excellent growth. These ratings would make PWR suitable for growth investing!
1. Profitability
1.1 Basic Checks
PWR had positive earnings in the past year.
In the past year PWR had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 4.86%, PWR is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.48%, PWR is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
PWR's Return On Invested Capital of 8.07% is fine compared to the rest of the industry. PWR outperforms 65.31% of its industry peers.
PWR had an Average Return On Invested Capital over the past 3 years of 7.28%. This is significantly below the industry average of 16.67%.
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
With a decent Profit Margin value of 3.74%, PWR is doing good in the industry, outperforming 63.27% of the companies in the same industry.
In the last couple of years the Profit Margin of PWR has grown nicely.
PWR's Operating Margin of 5.54% is in line compared to the rest of the industry. PWR outperforms 55.10% of its industry peers.
PWR's Operating Margin has improved in the last couple of years.
PWR's Gross Margin of 14.96% is in line compared to the rest of the industry. PWR outperforms 46.94% of its industry peers.
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
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
PWR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PWR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.03 indicates that PWR is not in any danger for bankruptcy at the moment.
The Altman-Z score of PWR (5.03) is better than 75.51% 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.
PWR has a Debt to FCF ratio of 3.10. This is in the better half of the industry: PWR outperforms 67.35% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that PWR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, PWR is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 5.03 |
ROIC/WACC0.77
WACC10.5%
2.3 Liquidity
PWR has a Current Ratio of 1.31. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, PWR perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
PWR has a Quick Ratio of 1.26. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
PWR's Quick ratio of 1.26 is in line compared to the rest of the industry. PWR outperforms 55.10% of 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.
The Earnings Per Share has been growing by 18.25% on average over the past years. This is quite good.
The Revenue has grown by 15.77% in the past year. This is quite good.
The Revenue has been growing by 14.34% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 14.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.53% on average over the next years. This is quite good.
EPS Next Y16.54%
EPS Next 2Y15.42%
EPS Next 3Y16.29%
EPS Next 5Y14.68%
Revenue Next Year13.82%
Revenue Next 2Y11.6%
Revenue Next 3Y12.12%
Revenue Next 5Y11.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.40 indicates a quite expensive valuation of PWR.
PWR's Price/Earnings is on the same level as the industry average.
PWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.51.
With a Price/Forward Earnings ratio of 32.36, PWR can be considered very expensive at the moment.
PWR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, PWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.4 | ||
| Fwd PE | 32.36 |
4.2 Price Multiples
65.31% 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 | 40.03 | ||
| EV/EBITDA | 28.33 |
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 16.29% in the coming years.
PEG (NY)2.5
PEG (5Y)2.27
EPS Next 2Y15.42%
EPS Next 3Y16.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.11%, PWR is not a good candidate for dividend investing.
PWR's Dividend Yield is a higher than the industry average which is at 1.62.
Compared to an average S&P500 Dividend Yield of 2.35, 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 2Y15.42%
EPS Next 3Y16.29%
NYSE:PWR (7/15/2025, 10:51:46 AM)
386.719
-0.28 (-0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change0.29%
Ins Owners0.61%
Ins Owner Change4.47%
Market Cap57.31B
Analysts80
Price Target363.48 (-6.01%)
Short Float %3.95%
Short Ratio4.92
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)1.64%
PT rev (3m)3.25%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-1.98%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.4 | ||
| Fwd PE | 32.36 | ||
| P/S | 2.3 | ||
| P/FCF | 40.03 | ||
| P/OCF | 27.47 | ||
| P/B | 7.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.33 |
EPS(TTM)9.34
EY2.42%
EPS(NY)11.95
Fwd EY3.09%
FCF(TTM)9.66
FCFY2.5%
OCF(TTM)14.08
OCFY3.64%
SpS167.84
BVpS50.31
TBVpS-0.42
PEG (NY)2.5
PEG (5Y)2.27
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 | 5.03 |
F-Score4
WACC10.5%
ROIC/WACC0.77
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 Y16.54%
EPS Next 2Y15.42%
EPS Next 3Y16.29%
EPS Next 5Y14.68%
Revenue 1Y (TTM)15.77%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%23.88%
Revenue Next Year13.82%
Revenue Next 2Y11.6%
Revenue Next 3Y12.12%
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%