QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - NYSE:PWR - US74762E1029 - Common Stock
445.01 USD
+2.11 (+0.48%)
445.01 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PWR. PWR was compared to 55 industry peers in the Construction & Engineering industry. PWR has an average financial health and profitability rating. PWR is valued quite expensively, but it does show have an excellent growth rating. With these ratings, PWR could be worth investigating further 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.
In the past 5 years PWR has always been profitable.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.48%, PWR perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.13%, PWR is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Return On Invested Capital of PWR (7.46%) is comparable to the rest of the industry.
PWR had an Average Return On Invested Capital over the past 3 years of 7.28%. This is significantly below the industry average of 17.19%.
The 3 year average ROIC (7.28%) for PWR is below the current ROIC(7.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 12.13% | ||
| ROIC | 7.46% |
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
PWR has a Profit Margin (3.74%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PWR has grown nicely.
PWR has a Operating Margin (5.60%) which is in line with its industry peers.
PWR's Operating Margin has improved in the last couple of years.
PWR has a Gross Margin of 15.16%. This is comparable to the rest of the industry: PWR outperforms 45.45% of its industry peers.
In the last couple of years the Gross Margin of PWR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.6% | ||
| PM (TTM) | 3.74% | ||
| GM | 15.16% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWR is destroying value.
The number of shares outstanding for PWR has been increased compared to 1 year ago.
Compared to 5 years ago, PWR has more shares outstanding
The debt/assets ratio for PWR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.70 indicates that PWR is not in any danger for bankruptcy at the moment.
PWR has a Altman-Z score of 4.70. This is in the better half of the industry: PWR outperforms 70.91% of its industry peers.
PWR has a debt to FCF ratio of 4.50. This is a neutral value as PWR would need 4.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.50, PWR is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.7 |
ROIC/WACC0.73
WACC10.22%
2.3 Liquidity
PWR has a Current Ratio of 1.34. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.34, PWR is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
PWR has a Quick Ratio of 1.30. 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 1.30 is in line compared to the rest of the industry. PWR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
PWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.48%, which is quite impressive.
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 18.72% 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)30.48%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%22.43%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%17.53%
3.2 Future
The Earnings Per Share is expected to grow by 18.45% 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 14.09% on average per year.
EPS Next Y19.17%
EPS Next 2Y18.25%
EPS Next 3Y17.59%
EPS Next 5Y18.45%
Revenue Next Year17.32%
Revenue Next 2Y14.87%
Revenue Next 3Y13.92%
Revenue Next 5Y14.09%
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.
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
With a Price/Earnings ratio of 42.26, PWR can be considered very expensive at the moment.
PWR's Price/Earnings ratio is in line with the industry average.
PWR is valuated expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 35.48, PWR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PWR is on the same level as its industry peers.
PWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 35.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PWR is on the same level as its industry peers.
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 | 52.97 | ||
| EV/EBITDA | 29.69 |
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 17.59% in the coming years.
PEG (NY)2.21
PEG (5Y)2.32
EPS Next 2Y18.25%
EPS Next 3Y17.59%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.09%, which is pretty low.
Compared to an average industry Dividend Yield of 1.78, PWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.09, PWR pays less dividend than the S&P500 average, which is at 2.37.
| 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
5.78% of the earnings are spent on dividend by PWR. This is a low number and sustainable payout ratio.
The dividend of PWR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP5.78%
EPS Next 2Y18.25%
EPS Next 3Y17.59%
445.01
+2.11 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-2.05%
Ins Owners0.61%
Ins Owner Change0.25%
Market Cap66.31B
Revenue(TTM)27.19B
Net Income(TTM)1.02B
Analysts76.67
Price Target433.75 (-2.53%)
Short Float %3.05%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP5.78%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.83%
Min EPS beat(2)0.46%
Max EPS beat(2)1.21%
EPS beat(4)4
Avg EPS beat(4)4.54%
Min EPS beat(4)0.46%
Max EPS beat(4)11.07%
EPS beat(8)7
Avg EPS beat(8)3.48%
EPS beat(12)10
Avg EPS beat(12)3.81%
EPS beat(16)13
Avg EPS beat(16)4.01%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)2.11%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)5.24%
Revenue beat(8)6
Avg Revenue beat(8)2.21%
Revenue beat(12)10
Avg Revenue beat(12)3.29%
Revenue beat(16)14
Avg Revenue beat(16)3.7%
PT rev (1m)2.27%
PT rev (3m)17.34%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)0.18%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 35.48 | ||
| P/S | 2.44 | ||
| P/FCF | 52.97 | ||
| P/OCF | 36.55 | ||
| P/B | 7.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.69 |
EPS(TTM)10.53
EY2.37%
EPS(NY)12.54
Fwd EY2.82%
FCF(TTM)8.4
FCFY1.89%
OCF(TTM)12.18
OCFY2.74%
SpS182.48
BVpS56.34
TBVpS-4.23
PEG (NY)2.21
PEG (5Y)2.32
Graham Number115.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 12.13% | ||
| ROCE | 9.7% | ||
| ROIC | 7.46% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 19.33% | ||
| OM | 5.6% | ||
| PM (TTM) | 3.74% | ||
| GM | 15.16% | ||
| FCFM | 4.6% |
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%
ROICexgc growth 3Y19.69%
ROICexgc 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-Score6
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 64.71% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 7.01 | ||
| Cash Conversion | 75.86% | ||
| Profit Quality | 122.97% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 4.7 |
F-Score6
WACC10.22%
ROIC/WACC0.73
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)30.48%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%22.43%
EPS Next Y19.17%
EPS Next 2Y18.25%
EPS Next 3Y17.59%
EPS Next 5Y18.45%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%17.53%
Revenue Next Year17.32%
Revenue Next 2Y14.87%
Revenue Next 3Y13.92%
Revenue Next 5Y14.09%
EBIT growth 1Y30.1%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.61%
EBIT Next 3Y38.24%
EBIT Next 5Y30.28%
FCF growth 1Y71.21%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y57.02%
OCF growth 3Y52.89%
OCF growth 5Y31.64%
QUANTA SERVICES INC / PWR FAQ
What is the ChartMill fundamental rating of QUANTA SERVICES INC (PWR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PWR.
Can you provide the valuation status for QUANTA SERVICES INC?
ChartMill assigns a valuation rating of 2 / 10 to QUANTA SERVICES INC (PWR). This can be considered as Overvalued.
Can you provide the profitability details for QUANTA SERVICES INC?
QUANTA SERVICES INC (PWR) has a profitability rating of 6 / 10.
What is the valuation of QUANTA SERVICES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for QUANTA SERVICES INC (PWR) is 42.26 and the Price/Book (PB) ratio is 7.9.
What is the financial health of QUANTA SERVICES INC (PWR) stock?
The financial health rating of QUANTA SERVICES INC (PWR) is 5 / 10.