NYSE:PWR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with solid track record.


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

Stable Share Price: PWR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

PWR

1.2%

US Construction

-2.0%

US Market


1 Year Return

-22.7%

PWR

-27.0%

US Construction

-15.1%

US Market

Return vs Industry: PWR exceeded the US Construction industry which returned -27% over the past year.

Return vs Market: PWR underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

PWRIndustryMarket
7 Day2.4%1.2%-2.0%
30 Day-21.9%-27.3%-19.7%
90 Day-25.2%-30.9%-23.2%
1 Year-22.3%-22.7%-26.4%-27.0%-13.4%-15.1%
3 Year-14.0%-14.6%-25.1%-26.8%10.9%3.7%
5 Year7.6%6.8%-8.7%-12.1%28.4%14.4%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PWR ($30.56) is trading below our estimate of fair value ($74.5)

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


Price To Earnings Ratio

PE vs Industry: PWR is poor value based on its PE Ratio (11.1x) compared to the Construction industry average (10.2x).

PE vs Market: PWR is good value based on its PE Ratio (11.1x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PWR is good value based on its PB Ratio (1.1x) compared to the US Construction industry average (1.2x).


Next Steps

Future Growth

How is Quanta Services forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWR's forecast earnings growth (12.7% per year) is above the savings rate (1.7%).

Earnings vs Market: PWR's earnings (12.7% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: PWR's earnings are forecast to grow, but not significantly.

Revenue vs Market: PWR's revenue (3.7% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: PWR's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PWR's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Quanta Services performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PWR has high quality earnings.

Growing Profit Margin: PWR's current net profit margins (3.3%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: PWR's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: PWR's earnings growth over the past year (37.1%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: PWR earnings growth over the past year (37.1%) exceeded the Construction industry 23.5%.


Return on Equity

High ROE: PWR's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Quanta Services's financial position?


Financial Position Analysis

Short Term Liabilities: PWR's short term assets ($3.8B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: PWR's short term assets ($3.8B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: PWR's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: PWR's debt to equity ratio has increased from 1.8% to 33.7% over the past 5 years.

Debt Coverage: PWR's debt is well covered by operating cash flow (38.5%).

Interest Coverage: PWR's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

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

Debt Coverage by Assets: PWR's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PWR's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: PWR's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (5.71%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: PWR is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Duke Austin (49yo)

4.08s

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 ($USD8.81M) is above average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Earl Austin
President4.08yrsUS$8.81m0.55% $23.8m
Derrick Jensen
Chief Financial Officer7.92yrsUS$3.72m0.24% $10.3m
Donald Wayne
Executive VP & General Counsel2.92yrsUS$2.63m0.047% $2.0m
Paul Gregory
President of Pipeline & Industrial Division and Chief Strategy Officer3.25yrsUS$4.93m0.17% $7.6m
Jerry Lemon
Chief Accounting Officer2.92yrsno data0.013% $561.1k
Kip Rupp
Vice President of Investor Relations8.83yrsno datano data
Redgie Probst
President of Electric Power Division1.08yrsno datano data
Nicholas Grindstaff
VP of Finance & Treasurer20.5yrsUS$722.71k0.033% $1.4m
Carolyn Campbell
Corporate Secretaryno datano datano data

3.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PWR's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Earl Austin
President4.08yrsUS$8.81m0.55% $23.8m
Margaret Shannon
Independent Director7.33yrsUS$273.69k0.022% $954.0k
Vincent Foster
Independent Director22.25yrsUS$263.69k0.17% $7.5m
David McClanahan
Independent Chairman2.92yrsUS$419.72k0.018% $801.1k
Bernard Fried
Independent Director16.08yrsUS$278.69k0.031% $1.3m
Martha Wyrsch
Director0.50yrno datano data
Worthing Jackman
Independent Director14.92yrsUS$283.69k0.015% $657.3k
Patrick Wood
Independent Director13.92yrsUS$258.69k0.012% $529.3k
John Conaway
Independent Director12.67yrsUS$273.69k0.015% $657.3k
Doyle Beneby
Independent Director4.08yrsUS$258.69k0.011% $488.8k

10.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PWR's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Quanta Services, Inc.
  • Ticker: PWR
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$4.356b
  • Shares outstanding: 142.55m
  • 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
QAABRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 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, installs, upgrades, repairs, and maintains electric power transmission and distribution infrastructure, and substation facilities, as well as provides other engineering and technical services; designs, installs, maintains, and repairs commercial and industrial wiring; and operates a postsecondary educational institution. It also offers emergency restoration services, including the repair of infrastructure damaged by inclement weather; installation, maintenance, and upgrade of electric power infrastructure; and installation of smart grid technologies on electric power networks. In addition, this segment provides services related to development of solar, wind, and various natural gas generation facilities, as well as related switchyards and transmission infrastructure; and construction of electric power generation facilities. The company’s Pipeline and Industrial Infrastructure Services segment designs, installs, repairs, and maintains pipeline transmission and distribution systems, gathering systems, production systems, storage systems, and compressor and pump stations, as well as offers related trenching, directional boring, and mechanized welding services; and designs, installs, and maintains fueling systems, and water and sewer infrastructure. This segment also provides pipeline protection, integrity testing, and rehabilitation and replacement, as well as pipeline support systems, and related structures and facilities fabrication services; and high-pressure and critical-path turnaround, electrical, piping, fabrication, and storage tank services. The company serves electric power, energy, and communications companies, as well as commercial, industrial, and governmental entities. Quanta Services, Inc. was founded in 1997 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 07:43
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.