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QUANTA SERVICES INC (PWR) Stock Fundamental Analysis

NYSE:PWR - New York Stock Exchange, Inc. - US74762E1029 - Common Stock - Currency: USD

343.15  -0.43 (-0.13%)

Premarket: 335 -8.15 (-2.38%)

Fundamental Rating

6

Overall PWR gets a fundamental rating of 6 out of 10. We evaluated PWR against 50 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 expensively, but it does show have an excellent growth rating. These ratings could make PWR a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years PWR has always been profitable.
In the past 5 years PWR always reported a positive cash flow from operatings.
PWR Yearly Net Income VS EBIT VS OCF VS FCFPWR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

The Return On Assets of PWR (4.86%) is better than 66.00% of its industry peers.
The Return On Equity of PWR (12.48%) is better than 64.00% of its industry peers.
PWR has a Return On Invested Capital of 8.07%. This is in the better half of the industry: PWR outperforms 66.00% 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 17.39%.
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 RankSector 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%
PWR Yearly ROA, ROE, ROICPWR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of PWR (3.74%) is better than 64.00% of its industry peers.
PWR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.54%, PWR is in line with its industry, outperforming 56.00% of the companies in the same industry.
PWR's Operating Margin has improved in the last couple of years.
PWR has a Gross Margin of 14.96%. This is comparable to the rest of the industry: PWR outperforms 48.00% of its industry peers.
PWR's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
PWR Yearly Profit, Operating, Gross MarginsPWR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

5

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.
Compared to 1 year ago, PWR has more shares outstanding
Compared to 5 years ago, PWR has more shares outstanding
The debt/assets ratio for PWR has been reduced compared to a year ago.
PWR Yearly Shares OutstandingPWR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
PWR Yearly Total Debt VS Total AssetsPWR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 4.69 indicates that PWR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.69, PWR is doing good in the industry, outperforming 74.00% of the companies in the same industry.
The Debt to FCF ratio of PWR is 3.10, which is a good value as it means it would take PWR, 3.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PWR (3.10) is better than 62.00% of its industry peers.
PWR has a Debt/Equity ratio of 0.58. This is a neutral value indicating PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 3.1
Altman-Z 4.69
ROIC/WACC0.84
WACC9.65%
PWR Yearly LT Debt VS Equity VS FCFPWR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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.
PWR has a Current ratio (1.31) which is in line with its industry peers.
A Quick Ratio of 1.26 indicates that PWR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.26, PWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.26
PWR Yearly Current Assets VS Current LiabilitesPWR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.25% 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 15.77% 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)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 14.52% on average per year.
The Revenue is expected to grow by 11.67% on average over the next years. This is quite good.
EPS Next Y14.75%
EPS Next 2Y14.71%
EPS Next 3Y16.29%
EPS Next 5Y14.52%
Revenue Next Year13.69%
Revenue Next 2Y11.6%
Revenue Next 3Y12.1%
Revenue Next 5Y11.67%

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
PWR Yearly Revenue VS EstimatesPWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B 50B
PWR Yearly EPS VS EstimatesPWR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 36.74, PWR can be considered very expensive at the moment.
PWR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PWR to the average of the S&P500 Index (24.85), we can say PWR is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.07, PWR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as PWR.
PWR's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.89.
Industry RankSector Rank
PE 36.74
Fwd PE 29.07
PWR Price Earnings VS Forward Price EarningsPWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PWR indicates a slightly more expensive valuation: PWR is more expensive than 62.00% of the companies listed in the same industry.
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 RankSector Rank
P/FCF 35.53
EV/EBITDA 25.33
PWR Per share dataPWR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)2.49
PEG (5Y)2.01
EPS Next 2Y14.71%
EPS Next 3Y16.29%

4

5. Dividend

5.1 Amount

PWR has a yearly dividend return of 0.12%, which is pretty low.
PWR's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.40, PWR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.12%

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
PWR Yearly Dividends per sharePWR Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

6.01% 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.
DP6.01%
EPS Next 2Y14.71%
EPS Next 3Y16.29%
PWR Yearly Income VS Free CF VS DividendPWR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
PWR Dividend Payout.PWR Dividend Payout, showing the Payout Ratio.PWR Dividend Payout.PayoutRetained Earnings

QUANTA SERVICES INC

NYSE:PWR (5/14/2025, 8:04:00 PM)

Premarket: 335 -8.15 (-2.38%)

343.15

-0.43 (-0.13%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-30 2025-07-30/amc
Inst Owners96.39%
Inst Owner Change0.43%
Ins Owners0.81%
Ins Owner Change4.22%
Market Cap50.88B
Analysts80
Price Target352.52 (2.73%)
Short Float %3.47%
Short Ratio3.31
Dividend
Industry RankSector Rank
Dividend Yield 0.12%
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP6.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-03 2025-04-03 (0.1)
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)0.13%
PT rev (3m)-2.95%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.78%
Valuation
Industry RankSector Rank
PE 36.74
Fwd PE 29.07
P/S 2.05
P/FCF 35.53
P/OCF 24.38
P/B 6.82
P/tB N/A
EV/EBITDA 25.33
EPS(TTM)9.34
EY2.72%
EPS(NY)11.8
Fwd EY3.44%
FCF(TTM)9.66
FCFY2.81%
OCF(TTM)14.07
OCFY4.1%
SpS167.77
BVpS50.29
TBVpS-0.42
PEG (NY)2.49
PEG (5Y)2.01
Profitability
Industry RankSector 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 RankSector 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 4.69
F-Score4
WACC9.65%
ROIC/WACC0.84
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 Y14.75%
EPS Next 2Y14.71%
EPS Next 3Y16.29%
EPS Next 5Y14.52%
Revenue 1Y (TTM)15.77%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%23.88%
Revenue Next Year13.69%
Revenue Next 2Y11.6%
Revenue Next 3Y12.1%
Revenue Next 5Y11.67%
EBIT growth 1Y23.89%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year102.82%
EBIT Next 3Y37.43%
EBIT Next 5Y27.75%
FCF growth 1Y109.22%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y92.54%
OCF growth 3Y52.89%
OCF growth 5Y31.64%