QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PWR - US74762E1029 - Common Stock
462.21 USD
+4.25 (+0.93%)
462.21 USD
0 (0%)
Taking everything into account, PWR scores 5 out of 10 in our fundamental rating. PWR was compared to 55 industry peers in the Construction & Engineering industry. PWR has only an average score on both its financial health and profitability. 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.
PWR had positive earnings in each of the past 5 years.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PWR has a Return On Assets of 4.48%. This is comparable to the rest of the industry: PWR outperforms 58.18% of its industry peers.
PWR has a Return On Equity of 12.13%. This is comparable to the rest of the industry: PWR outperforms 56.36% of its industry peers.
PWR has a Return On Invested Capital (7.46%) which is in line with 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 17.87%.
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 58.18% of its industry peers.
PWR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.60%, PWR perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
In the last couple of years the Operating Margin of PWR has grown nicely.
PWR has a worse Gross Margin (15.16%) than 60.00% of its industry peers.
PWR's Gross Margin has improved in the last couple of years.
| 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
PWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
PWR has a better debt/assets ratio than last year.
2.2 Solvency
PWR has an Altman-Z score of 4.82. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PWR (4.82) is better than 76.36% of its industry peers.
The Debt to FCF ratio of PWR is 4.50, which is a neutral value as it means it would take PWR, 4.50 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.66, PWR is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 4.82 |
ROIC/WACC0.74
WACC10.02%
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 has a Current ratio (1.34) which is comparable to the rest of the 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 has a Quick ratio (1.30) which is in line with 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.
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 18.72% in the last year.
Measured over the past years, PWR shows a quite strong growth in Revenue. The Revenue has been growing by 14.34% on average per year.
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 Y19.46%
EPS Next 2Y18.4%
EPS Next 3Y17.18%
EPS Next 5Y18.45%
Revenue Next Year18.08%
Revenue Next 2Y15.12%
Revenue Next 3Y14.08%
Revenue Next 5Y13.78%
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
Based on the Price/Earnings ratio of 43.89, the valuation of PWR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PWR.
The average S&P500 Price/Earnings ratio is at 26.59. PWR is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 36.76, the valuation of PWR can be described as expensive.
PWR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, PWR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 36.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PWR is valued a bit more expensive than 61.82% of the companies in the same industry.
PWR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.06 | ||
| EV/EBITDA | 30.91 |
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.
PWR has a very decent profitability rating, which may justify a higher PE ratio.
PWR's earnings are expected to grow with 17.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.26
PEG (5Y)2.41
EPS Next 2Y18.4%
EPS Next 3Y17.18%
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 1.65, PWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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
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 2Y18.4%
EPS Next 3Y17.18%
462.21
+4.25 (+0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.73%
Inst Owner Change-1.2%
Ins Owners0.59%
Ins Owner Change-1.31%
Market Cap68.92B
Revenue(TTM)27.19B
Net Income(TTM)1.02B
Analysts77.22
Price Target480.24 (3.9%)
Short Float %2.91%
Short Ratio4.06
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)10.72%
PT rev (3m)13.09%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 36.76 | ||
| P/S | 2.53 | ||
| P/FCF | 55.06 | ||
| P/OCF | 37.99 | ||
| P/B | 8.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.91 |
EPS(TTM)10.53
EY2.28%
EPS(NY)12.58
Fwd EY2.72%
FCF(TTM)8.4
FCFY1.82%
OCF(TTM)12.17
OCFY2.63%
SpS182.34
BVpS56.3
TBVpS-4.23
PEG (NY)2.26
PEG (5Y)2.41
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 | 4.82 |
F-Score6
WACC10.02%
ROIC/WACC0.74
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 Y19.46%
EPS Next 2Y18.4%
EPS Next 3Y17.18%
EPS Next 5Y18.45%
Revenue 1Y (TTM)18.72%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%17.53%
Revenue Next Year18.08%
Revenue Next 2Y15.12%
Revenue Next 3Y14.08%
Revenue Next 5Y13.78%
EBIT growth 1Y30.1%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year109.87%
EBIT Next 3Y38.88%
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 43.89 and the Price/Book (PB) ratio is 8.21.
What is the financial health of QUANTA SERVICES INC (PWR) stock?
The financial health rating of QUANTA SERVICES INC (PWR) is 5 / 10.