QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
436.93 USD
+5.33 (+1.23%)
436.93 USD
0 (0%)
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 54 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. PWR is valued quite expensively, but it does show have an excellent growth rating. 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.
In the past 5 years PWR has always been profitable.
Each year in the past 5 years PWR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.89%, PWR perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
PWR has a Return On Equity (12.37%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 7.94%, PWR is doing good in the industry, outperforming 62.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PWR is significantly below the industry average of 17.10%.
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.
In the last couple of years the Profit Margin of PWR has grown nicely.
Looking at the Operating Margin, with a value of 5.51%, PWR is in line with its industry, outperforming 53.70% of the companies in the same 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 44.44% of its industry peers.
PWR's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PWR 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.
PWR has a better debt/assets ratio than last year.
2.2 Solvency
PWR has an Altman-Z score of 5.31. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.31, PWR is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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.
PWR's Debt to FCF ratio of 3.49 is fine compared to the rest of the industry. PWR outperforms 62.96% of its industry peers.
PWR has a Debt/Equity ratio of 0.59. This is a neutral value indicating PWR is somewhat dependend on debt financing.
PWR's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. PWR outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 5.31 |
ROIC/WACC0.72
WACC11.1%
2.3 Liquidity
A Current Ratio of 1.37 indicates that PWR should not have too much problems paying its short term obligations.
PWR has a better Current ratio (1.37) than 62.96% 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 of 1.32. This is in the better half of the industry: PWR outperforms 61.11% of 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.
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.
The Revenue has grown by 18.26% in the past year. This is quite good.
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)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 17.21% on average over the next years. This is quite good.
Based on estimates for the next years, PWR will show a quite strong growth in Revenue. The Revenue will grow by 13.29% on average per year.
EPS Next Y19%
EPS Next 2Y17.77%
EPS Next 3Y17.02%
EPS Next 5Y17.21%
Revenue Next Year16.5%
Revenue Next 2Y14.22%
Revenue Next 3Y13.27%
Revenue Next 5Y13.29%
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.
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
The Price/Earnings ratio is 44.05, which means the current valuation is very expensive for PWR.
Compared to the rest of the industry, the Price/Earnings ratio of PWR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PWR to the average of the S&P500 Index (27.49), we can say PWR is valued expensively.
The Price/Forward Earnings ratio is 35.12, which means the current valuation is very expensive for 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 (22.99), we can say PWR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.05 | ||
| Fwd PE | 35.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PWR.
The rest of the industry has a similar Price/Free Cash Flow ratio as PWR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.93 | ||
| EV/EBITDA | 30.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PWR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PWR's earnings are expected to grow with 17.02% in the coming years.
PEG (NY)2.32
PEG (5Y)2.41
EPS Next 2Y17.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.09%, which is pretty low.
PWR's Dividend Yield is a higher than the industry average which is at 1.66.
Compared to an average S&P500 Dividend Yield of 2.43, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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
5.92% 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.
DP5.92%
EPS Next 2Y17.77%
EPS Next 3Y17.02%
436.93
+5.33 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-0.4%
Ins Owners0.61%
Ins Owner Change0.25%
Market Cap65.11B
Analysts76.67
Price Target427.03 (-2.27%)
Short Float %3.18%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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)0.56%
PT rev (3m)17.48%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)3.52%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.05 | ||
| Fwd PE | 35.12 | ||
| P/S | 2.5 | ||
| P/FCF | 47.93 | ||
| P/OCF | 32.7 | ||
| P/B | 8.29 | ||
| P/tB | 251.51 | ||
| EV/EBITDA | 30.21 |
EPS(TTM)9.92
EY2.27%
EPS(NY)12.44
Fwd EY2.85%
FCF(TTM)9.12
FCFY2.09%
OCF(TTM)13.36
OCFY3.06%
SpS174.84
BVpS52.73
TBVpS1.74
PEG (NY)2.32
PEG (5Y)2.41
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 | 5.31 |
F-Score5
WACC11.1%
ROIC/WACC0.72
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%
EPS Next 2Y17.77%
EPS Next 3Y17.02%
EPS Next 5Y17.21%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%21.07%
Revenue Next Year16.5%
Revenue Next 2Y14.22%
Revenue Next 3Y13.27%
Revenue Next 5Y13.29%
EBIT growth 1Y25.78%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.61%
EBIT Next 3Y38.24%
EBIT Next 5Y29.26%
FCF growth 1Y91.67%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y82.26%
OCF growth 3Y52.89%
OCF growth 5Y31.64%