DB:QAA

Stock Analysis Report

Executive Summary

Quanta Services, Inc. provides specialty contracting services in the United States, Canada, Australia, Latin America, and internationally.

Snowflake

Fundamentals

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Quanta Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

QAA

1.0%

DE Construction

1.7%

DE Market


1 Year Return

32.0%

QAA

-18.3%

DE Construction

7.2%

DE Market

Return vs Industry: QAA exceeded the German Construction industry which returned -18.3% over the past year.

Return vs Market: QAA exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

QAAIndustryMarket
7 Day2.9%1.0%1.7%
30 Day5.9%-0.06%2.4%
90 Day7.2%2.5%2.3%
1 Year32.6%32.0%-15.0%-18.3%10.6%7.2%
3 Year39.1%38.5%-7.4%-14.3%18.4%8.1%
5 Year41.9%41.3%102.2%79.4%42.3%22.9%

Price Volatility Vs. Market

How volatile is Quanta Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Quanta Services undervalued compared to its fair value and its price relative to the market?

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QAA (€36) is trading below our estimate of fair value (€70.17)

Significantly Below Fair Value: QAA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QAA is poor value based on its PE Ratio (18.4x) compared to the Construction industry average (11.2x).

PE vs Market: QAA is good value based on its PE Ratio (18.4x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: QAA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: QAA is overvalued based on its PB Ratio (1.5x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

How is Quanta Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QAA's forecast earnings growth (20.9% per year) is above the savings rate (0.2%).

Earnings vs Market: QAA's earnings (20.9% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QAA's revenue (6.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: QAA's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if QAA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Quanta Services performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QAA's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: QAA's earnings growth over the past year (4.6%) is below its 5-year average (6.6% per year).

Earnings vs Industry: QAA earnings growth over the past year (4.6%) underperformed the Construction industry 7.9%.


Return on Equity

High ROE: QAA's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: QAA has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: QAA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Quanta Services's financial position?


Financial Position Analysis

Short Term Liabilities: QAA's short term assets ($3.8B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: QAA's short term assets (3.8B) exceeds its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: QAA's debt to equity ratio (41.5%) is considered high

Reducing Debt: QAA's debt to equity ratio has increased from 0.1% to 41.5% over the past 5 years.

Debt Coverage: QAA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: QAA's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

Inventory Level: QAA has a high level of physical assets or inventory.

Debt Coverage by Assets: QAA's debt is covered by short term assets (assets are 2.392870x debt).


Next Steps

Dividend

What is Quanta Services's current dividend yield, its reliability and sustainability?

0.39%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.6%forecastin3Years0.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QAA's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: QAA's dividend (0.39%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: QAA is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: QAA is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: QAA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of QAA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Quanta Services's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Duke Austin (49yo)

3.6yrs

Tenure

US$8,808,204

Compensation

Mr. Earl C. Austin, Jr., also known as Duke, has been the Chief Operating Officer of Quanta Services, Inc. since January 1, 2013. Mr. Austin has been Director, President and Chief Executive Officer at Quan ...


CEO Compensation Analysis

Compensation vs. Market: Duke's total compensation ($USD8.81M) is about average for companies of similar size in the German market ($USD3.65M).

Compensation vs Earnings: Duke's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: QAA's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

12.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: QAA's board of directors are seasoned and experienced ( 12.2 years average tenure).


Insider Trading

Insider Buying: QAA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$8,50617 Oct 19
Vincent Foster
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares240
Max PriceUS$35.57
BuyUS$8,39924 Apr 19
Vincent Foster
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares234
Max PriceUS$35.90
SellUS$129,52427 Mar 19
Bernard Fried
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$32.38
SellUS$41,07704 Mar 19
Donald Wayne
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares1,295
Max PriceUS$31.72
BuyUS$235,79302 Jan 19
Vincent Foster
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceUS$26.20
BuyUS$218,12020 Dec 18
Derrick Jensen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares8,560
Max PriceUS$26.03
BuyUS$656,13720 Dec 18
Earl Austin
EntityIndividual
Role
Chief Executive Officer
President
Shares25,500
Max PriceUS$25.73

Ownership Breakdown


Management Team

  • Derrick Jensen (48yo)

    Chief Financial Officer

    • Tenure: 7.4yrs
    • Compensation: US$3.72m
  • Donald Wayne (52yo)

    Executive VP & General Counsel

    • Tenure: 2.4yrs
    • Compensation: US$2.63m
  • Nicholas Grindstaff (56yo)

    VP of Finance & Treasurer

    • Tenure: 20yrs
    • Compensation: US$722.71k
  • Kip Rupp

    Vice President of Investor Relations

    • Tenure: 8.3yrs
  • Jerry Lemon (59yo)

    Chief Accounting Officer

    • Tenure: 2.4yrs
  • Carolyn Campbell (57yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Paul Gregory (55yo)

    President of Pipeline & Industrial Division and Chief Strategy Officer

    • Tenure: 2.8yrs
    • Compensation: US$4.93m
  • Duke Austin (49yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$8.81m
  • Redgie Probst (42yo)

    President of Electric Power Division

    • Tenure: 0.6yrs

Board Members

  • Margaret Shannon (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$273.69k
  • Vince Foster (62yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$263.69k
  • David McClanahan (70yo)

    Independent Chairman

    • Tenure: 2.4yrs
    • Compensation: US$419.72k
  • Bernard Fried (62yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$278.69k
  • Martha Wyrsch (61yo)

    Director

    • Tenure: 0yrs
  • Worthing Jackman (55yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$283.69k
  • Pat Wood (56yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$258.69k
  • John Conaway (70yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$273.69k
  • Doyle Beneby (60yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$258.69k
  • Duke Austin (49yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$8.81m

Company Information

Quanta Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quanta Services, Inc.
  • Ticker: QAA
  • Exchange: DB
  • Founded: 1997
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$5.766b
  • Listing Market Cap: US$5.175b
  • Shares outstanding: 142.22m
  • Website: https://www.quantaservices.com

Number of Employees


Location

  • Quanta Services, Inc.
  • 2800 Post Oak Boulevard
  • Suite 2600
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PWRNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1998
QAADB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1998
0KSRLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1998

Biography

Quanta Services, Inc. provides specialty contracting services in the United States, Canada, Australia, Latin America, and internationally. Its Electric Power Infrastructure Services segment designs, instal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:12
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.