NYSE:PWR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven 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

0.6%

PWR

-4.9%

US Construction

-4.1%

US Market


1 Year Return

45.5%

PWR

1.2%

US Construction

12.0%

US Market

Return vs Industry: PWR exceeded the US Construction industry which returned 1.2% over the past year.

Return vs Market: PWR exceeded the US Market which returned 12% over the past year.


Shareholder returns

PWRIndustryMarket
7 Day0.6%-4.9%-4.1%
30 Day18.5%6.7%-0.2%
90 Day56.8%17.9%2.8%
1 Year46.2%45.5%1.8%1.2%14.6%12.0%
3 Year77.4%75.7%3.3%1.0%35.8%26.8%
5 Year203.4%200.5%44.9%39.6%75.2%55.6%

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?

22.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PWR ($62.66) is trading above our estimate of fair value ($38.97)

Significantly Below Fair Value: PWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PWR is poor value based on its PE Ratio (22.7x) compared to the US Construction industry average (18.8x).

PE vs Market: PWR is poor value based on its PE Ratio (22.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PWR is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PWR is overvalued based on its PB Ratio (2.1x) compared to the US Construction industry average (1.8x).


Next Steps

Future Growth

How is Quanta Services forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWR's forecast earnings growth (15.2% per year) is above the savings rate (2.2%).

Earnings vs Market: PWR's earnings (15.2% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: PWR's revenue (6.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PWR's revenue (6.4% 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 (12.6%).


Next Steps

Past Performance

How has Quanta Services performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PWR has high quality earnings.

Growing Profit Margin: PWR's current net profit margins (3.5%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: PWR's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: PWR's earnings growth over the past year (15.3%) is below its 5-year average (21.6% per year).

Earnings vs Industry: PWR earnings growth over the past year (15.3%) exceeded the Construction industry 12%.


Return on Equity

High ROE: PWR's Return on Equity (9.6%) 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 ($3.7B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: PWR's short term assets ($3.7B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: PWR's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: PWR's debt to equity ratio has increased from 10.9% to 29.2% over the past 5 years.

Debt Coverage: PWR's debt is well covered by operating cash flow (119.1%).

Interest Coverage: PWR's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PWR's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PWR's dividend (0.32%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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?

3.8yrs

Average management tenure


CEO

Duke Austin (50 yo)

4.58yrs

Tenure

US$10,247,932

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 ($USD10.25M) is above average for companies of similar size in the US market ($USD7.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Earl Austin
President4.58yrsUS$10.25m0.29%
$ 24.9m
Derrick Jensen
Chief Financial Officer8.42yrsUS$3.61m0.15%
$ 13.0m
Donald Wayne
Executive VP & General Counsel3.42yrsUS$2.58m0.047%
$ 4.1m
Redgie Probst
President of Electric Power Division1.58yrsUS$2.70mno data
Paul Gregory
President of Pipeline & Industrial Division and Chief Strategy Officer3.75yrsUS$5.25m0.13%
$ 11.2m
Jerry Lemon
Chief Accounting Officer3.42yrsno data0.012%
$ 1.1m
Kip Rupp
Vice President of Investor Relations9.33yrsno datano data
Jayshree Desai
Chief Corporate Development Officer0.75yrno datano data
Nicholas Grindstaff
VP of Finance & Treasurer21yrsUS$722.71k0.034%
$ 2.9m
Carolyn Campbell
Corporate Secretaryno datano datano data

3.8yrs

Average Tenure

53yo

Average Age

Experienced Management: PWR's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Earl Austin
President4.58yrsUS$10.25m0.29%
$ 24.9m
Margaret Shannon
Independent Director7.83yrsUS$258.88k0.025%
$ 2.2m
Vincent Foster
Independent Director22.75yrsUS$248.88k0.18%
$ 15.4m
David McClanahan
Independent Chairman3.42yrsUS$397.20k0.023%
$ 2.0m
Bernard Fried
Independent Director16.58yrsUS$263.88k0.034%
$ 3.0m
Martha Wyrsch
Independent Director1yrUS$160.90k0.0019%
$ 161.8k
Worthing Jackman
Independent Director15.42yrsUS$268.88k0.018%
$ 1.6m
Patrick Wood
Independent Director14.42yrsUS$243.88k0.014%
$ 1.2m
John Conaway
Independent Director13.17yrsUS$258.88k0.017%
$ 1.5m
Doyle Beneby
Independent Director4.58yrsUS$243.88k0.014%
$ 1.3m

10.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PWR's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$8.700b
  • Shares outstanding: 138.84m
  • 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
Q1UA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

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 Analysis2020/10/30 03:37
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
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.