QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PWR - US74762E1029 - Common Stock
454.72 USD
+2.49 (+0.55%)
454.7 USD
-0.02 (0%)
PWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of PWR get a neutral evaluation. Nothing too spectacular is happening here. PWR is valued quite expensive, but it does show an excellent growth. These ratings could make PWR a good candidate 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
PWR has a Return On Assets of 4.48%. This is comparable to the rest of the industry: PWR outperforms 60.00% of its industry peers.
PWR has a Return On Equity (12.13%) which is in line with its industry peers.
PWR's Return On Invested Capital of 7.46% is fine compared to the rest of the industry. PWR outperforms 61.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PWR is significantly below the industry average of 17.30%.
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's Profit Margin of 3.74% is in line compared 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.
Looking at the Operating Margin, with a value of 5.60%, PWR is in line with its industry, outperforming 52.73% of the companies in the same industry.
PWR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 15.16%, PWR is in line with its industry, outperforming 43.64% of the companies in the same industry.
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.
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.
2.2 Solvency
An Altman-Z score of 4.77 indicates that PWR is not in any danger for bankruptcy at the moment.
PWR has a better Altman-Z score (4.77) than 74.55% 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.
Looking at the Debt to FCF ratio, with a value of 4.50, PWR is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
PWR has a Debt/Equity ratio of 0.66. This is a neutral value indicating PWR is somewhat dependend on debt financing.
PWR has a Debt to Equity ratio of 0.66. This is comparable to the rest of the industry: PWR outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.77 |
ROIC/WACC0.78
WACC9.61%
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.
PWR's Current ratio of 1.34 is fine compared to the rest of the industry. PWR outperforms 61.82% of its industry peers.
A Quick Ratio of 1.30 indicates that PWR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, PWR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| 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.
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 18.72% 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)30.48%
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
PWR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.45% yearly.
The Revenue is expected to grow by 13.78% on average over the next years. This is quite good.
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 5Y13.78%
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
A Price/Earnings ratio of 43.18 indicates a quite expensive valuation of PWR.
PWR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.15, PWR is valued quite expensively.
With a Price/Forward Earnings ratio of 36.25, PWR can be considered very expensive at the moment.
PWR's Price/Forward Earnings ratio is in line with the industry average.
PWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.18 | ||
| Fwd PE | 36.25 |
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.
PWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.17 | ||
| EV/EBITDA | 30.45 |
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 17.59% in the coming years.
PEG (NY)2.25
PEG (5Y)2.37
EPS Next 2Y18.25%
EPS Next 3Y17.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, PWR is not a good candidate for dividend investing.
PWR's Dividend Yield is a higher than the industry average which is at 1.67.
With a Dividend Yield of 0.10, PWR pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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
PWR pays out 5.78% of its income as dividend. This is a 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%
454.72
+2.49 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-1.23%
Ins Owners0.61%
Ins Owner Change-1.07%
Market Cap67.81B
Revenue(TTM)27.19B
Net Income(TTM)1.02B
Analysts76.67
Price Target474.82 (4.42%)
Short Float %2.91%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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)11.19%
PT rev (3m)12.05%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.18 | ||
| Fwd PE | 36.25 | ||
| P/S | 2.49 | ||
| P/FCF | 54.17 | ||
| P/OCF | 37.37 | ||
| P/B | 8.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.45 |
EPS(TTM)10.53
EY2.32%
EPS(NY)12.54
Fwd EY2.76%
FCF(TTM)8.4
FCFY1.85%
OCF(TTM)12.17
OCFY2.68%
SpS182.34
BVpS56.3
TBVpS-4.23
PEG (NY)2.25
PEG (5Y)2.37
Graham Number115.5
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 | 4.77 |
F-Score6
WACC9.61%
ROIC/WACC0.78
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 5Y13.78%
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 43.18 and the Price/Book (PB) ratio is 8.08.
What is the financial health of QUANTA SERVICES INC (PWR) stock?
The financial health rating of QUANTA SERVICES INC (PWR) is 5 / 10.