QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
NYSE:PWR - New York Stock Exchange, Inc. - US74762E1029 - Common Stock - Currency: USD
Taking everything into account, PWR scores 6 out of 10 in our fundamental rating. PWR was compared to 50 industry peers in the Construction & Engineering industry. PWR scores excellent on profitability, but there are some minor concerns on its financial health. 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.
Each year in the past 5 years PWR has been profitable.
PWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PWR (4.84%) is better than 70.00% of its industry peers.
The Return On Equity of PWR (12.36%) is better than 62.00% of its industry peers.
PWR has a Return On Invested Capital of 7.88%. 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 below the industry average of 12.17%.
The 3 year average ROIC (7.28%) for PWR is below the current ROIC(7.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 12.36% | ||
| ROIC | 7.88% |
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 (3.82%) is better than 66.00% of its industry peers.
PWR's Profit Margin has improved in the last couple of years.
PWR has a Operating Margin (5.47%) which is in line with its industry peers.
PWR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 14.83%, PWR perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
PWR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.47% | ||
| PM (TTM) | 3.82% | ||
| GM | 14.83% |
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.
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
PWR has an Altman-Z score of 4.56. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
PWR has a Altman-Z score of 4.56. This is in the better half of the industry: PWR outperforms 78.00% of its industry peers.
PWR has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as PWR would need 2.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.82, PWR is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that PWR is somewhat dependend on debt financing.
The Debt to Equity ratio of PWR (0.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.9
WACC8.76%
2.3 Liquidity
PWR has a Current 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.
Looking at the Current ratio, with a value of 1.30, PWR is in line with its industry, outperforming 50.00% of the companies in the same industry.
PWR has a Quick Ratio of 1.26. 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 1.26 is in line compared to the rest of the industry. PWR outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.25% 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.
PWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.36%.
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)27.25%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%26.24%
Revenue 1Y (TTM)13.36%
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 Year13.25%
Revenue Next 2Y11.35%
Revenue Next 3Y12.36%
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.
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 34.47, PWR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PWR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.75. PWR is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.27, the valuation of PWR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PWR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.49. PWR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 27.27 |
4.2 Price Multiples
64.00% of the companies in the same industry are cheaper than PWR, based on the Enterprise Value to EBITDA ratio.
PWR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.31 | ||
| EV/EBITDA | 25.09 |
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.
PWR's earnings are expected to grow with 16.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.34
PEG (5Y)1.89
EPS Next 2Y14.71%
EPS Next 3Y16.29%
5. Dividend
5.1 Amount
PWR has a yearly dividend return of 0.14%, which is pretty low.
Compared to an average industry Dividend Yield of 2.00, PWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.14, PWR pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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 5.99% of its income as dividend. This is a sustainable payout ratio.
PWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.99%
EPS Next 2Y14.71%
EPS Next 3Y16.29%
321.93
+29.24 (+9.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.39%
Inst Owner Change0.53%
Ins Owners0.81%
Ins Owner Change4.22%
Market Cap47.73B
Analysts80
Price Target335.14 (4.1%)
Short Float %3.45%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.37
Dividend Growth(5Y)17.7%
DP5.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.59%
Min EPS beat(2)0.11%
Max EPS beat(2)11.07%
EPS beat(4)3
Avg EPS beat(4)4.7%
Min EPS beat(4)-0.66%
Max EPS beat(4)11.07%
EPS beat(8)6
Avg EPS beat(8)4.35%
EPS beat(12)9
Avg EPS beat(12)4.1%
EPS beat(16)13
Avg EPS beat(16)4.43%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-1.87%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)0.9%
Revenue beat(8)6
Avg Revenue beat(8)3.45%
Revenue beat(12)10
Avg Revenue beat(12)3.61%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)-5.42%
PT rev (3m)-3.67%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-6.28%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 27.27 | ||
| P/S | 2.02 | ||
| P/FCF | 32.31 | ||
| P/OCF | 22.93 | ||
| P/B | 6.52 | ||
| P/tB | 339.1 | ||
| EV/EBITDA | 25.09 |
EPS(TTM)9.34
EY2.9%
EPS(NY)11.8
Fwd EY3.67%
FCF(TTM)9.96
FCFY3.09%
OCF(TTM)14.04
OCFY4.36%
SpS159.67
BVpS49.36
TBVpS0.95
PEG (NY)2.34
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 12.36% | ||
| ROCE | 10.24% | ||
| ROIC | 7.88% | ||
| ROICexc | 8.37% | ||
| ROICexgc | 21.06% | ||
| OM | 5.47% | ||
| PM (TTM) | 3.82% | ||
| GM | 14.83% | ||
| FCFM | 6.24% |
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-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 81.38% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 7.79 | ||
| Cash Conversion | 102.1% | ||
| Profit Quality | 163.25% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 4.56 |
F-Score6
WACC8.76%
ROIC/WACC0.9
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)13.36%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%23.88%
Revenue Next Year13.25%
Revenue Next 2Y11.35%
Revenue Next 3Y12.36%
Revenue Next 5Y11.67%
EBIT growth 1Y19.3%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year102.82%
EBIT Next 3Y37.43%
EBIT Next 5Y27.75%
FCF growth 1Y30.28%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y32.06%
OCF growth 3Y52.89%
OCF growth 5Y31.64%