QUANTA SERVICES INC (PWR) Stock Fundamental Analysis
NYSE:PWR - US74762E1029 - Common Stock
379.84 USD
+1.63 (+0.43%)
379.84 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PWR. PWR was compared to 49 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. 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.
Each year in the past 5 years PWR has been profitable.
In the past 5 years PWR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.89%, PWR is doing good in the industry, outperforming 61.22% of the companies in the same industry.
PWR has a Return On Equity (12.37%) which is comparable to the rest of the industry.
PWR has a better Return On Invested Capital (7.94%) than 63.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PWR is significantly below the industry average of 14.54%.
The last Return On Invested Capital (7.94%) for PWR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 3.73%, PWR perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
PWR's Profit Margin has improved in the last couple of years.
The Operating Margin of PWR (5.51%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PWR has grown nicely.
The Gross Margin of PWR (15.04%) is comparable to the rest of the industry.
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.
Compared to 1 year ago, PWR has more shares outstanding
PWR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PWR has been reduced compared to a year ago.
2.2 Solvency
PWR has an Altman-Z score of 4.93. This indicates that PWR is financially healthy and has little risk of bankruptcy at the moment.
PWR has a better Altman-Z score (4.93) than 77.55% of its industry peers.
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 has a better Debt to FCF ratio (3.49) than 63.27% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that PWR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, PWR is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 4.93 |
ROIC/WACC0.73
WACC10.91%
2.3 Liquidity
PWR has a Current Ratio of 1.37. This is a normal value and indicates that PWR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PWR (1.37) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that PWR should not have too much problems paying its short term obligations.
The Quick ratio of PWR (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
PWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.70%, 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.
The Revenue has grown by 18.26% in the past year. This is quite good.
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)30.7%
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 16.99% on average over the next years. This is quite good.
PWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.02% yearly.
EPS Next Y19.09%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
EPS Next 5Y16.99%
Revenue Next Year16.58%
Revenue Next 2Y14.32%
Revenue Next 3Y13.52%
Revenue Next 5Y13.02%
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
Based on the Price/Earnings ratio of 38.29, the valuation of PWR can be described as expensive.
PWR's Price/Earnings ratio is in line with the industry average.
PWR is valuated rather expensively when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.48 indicates a quite expensive valuation of PWR.
PWR's Price/Forward Earnings is on the same level as the industry average.
PWR's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.29 | ||
| Fwd PE | 30.48 |
4.2 Price Multiples
PWR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PWR is more expensive than 67.35% 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 | 41.67 | ||
| EV/EBITDA | 26.81 |
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.
PWR's earnings are expected to grow with 17.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.01
PEG (5Y)2.1
EPS Next 2Y17.86%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.11%, PWR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.55, PWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, PWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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
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 2Y17.86%
EPS Next 3Y17.02%
379.84
+1.63 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change2.65%
Ins Owners0.61%
Ins Owner Change4.46%
Market Cap56.60B
Analysts76.47
Price Target423.75 (11.56%)
Short Float %2.57%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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)14.64%
PT rev (3m)20.21%
EPS NQ rev (1m)3.24%
EPS NQ rev (3m)5.77%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)2.63%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.29 | ||
| Fwd PE | 30.48 | ||
| P/S | 2.17 | ||
| P/FCF | 41.67 | ||
| P/OCF | 28.43 | ||
| P/B | 7.2 | ||
| P/tB | 218.64 | ||
| EV/EBITDA | 26.81 |
EPS(TTM)9.92
EY2.61%
EPS(NY)12.46
Fwd EY3.28%
FCF(TTM)9.12
FCFY2.4%
OCF(TTM)13.36
OCFY3.52%
SpS174.84
BVpS52.73
TBVpS1.74
PEG (NY)2.01
PEG (5Y)2.1
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 | 4.93 |
F-Score5
WACC10.91%
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)30.7%
EPS 3Y22.25%
EPS 5Y18.25%
EPS Q2Q%30.53%
EPS Next Y19.09%
EPS Next 2Y17.86%
EPS Next 3Y17.02%
EPS Next 5Y16.99%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y22.18%
Revenue growth 5Y14.34%
Sales Q2Q%21.07%
Revenue Next Year16.58%
Revenue Next 2Y14.32%
Revenue Next 3Y13.52%
Revenue Next 5Y13.02%
EBIT growth 1Y25.78%
EBIT growth 3Y27.5%
EBIT growth 5Y17.91%
EBIT Next Year108.01%
EBIT Next 3Y37.8%
EBIT Next 5Y29.05%
FCF growth 1Y91.67%
FCF growth 3Y96.17%
FCF growth 5Y41.08%
OCF growth 1Y82.26%
OCF growth 3Y52.89%
OCF growth 5Y31.64%