Quanta Services Inc
Exchange: NYSESector: IndustrialsIndustry: Engineering & Construction
Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope.
Did you know?
Capital expenditures increased by 1% from FY24 to FY25.
Current Price
$742.21
+1.98%GoodMoat Value
$425.98
42.6% overvaluedProfile
Valuation (TTM)
Market Cap$111.05B
P/E100.52
EV$90.60B
P/B12.42
Shares Out149.62M
P/Sales3.69
Revenue$30.12B
EV/EBITDA43.56
Quanta Services Inc (PWR) Stock Analysis
GoodMoat Analysis
Quanta Services is a leading specialty contractor for energy infrastructure, but its valuation appears highly unfavourable. With a P/E of 83x and a stock price 45% above the GoodMoat target, it fails the valuation gate despite potential operational strengths.
Read full analysis
Quanta Services Inc operates in the engineering and construction sector, providing critical infrastructure services for the electric power, renewable energy, and pipeline industries. Applying the GoodMoat framework, a moat analysis (Section 1) would likely focus on scale privilege, regulatory barriers, and niche dominance as its primary competitive advantages, given its role as a large, qualified contractor for complex, mission-critical projects. However, the valuation assessment is the primary concern. The stock trades at a P/E of 83.2, which is extremely high for a company with a 3.6% profit margin and 11.5% ROE. The provided GoodMoat target price of $396.05 suggests the current price of $573.5 represents a significant premium, indicating a negative margin of safety in a Discounted Cash Flow analysis. Following the Decision Framework (Section 6), while the business may pass an initial moat and quality gate, it would almost certainly be classified as 'UNFAVOURABLE' at the valuation and risk gate. The extreme valuation (a High Confidence Red Flag) and a price far above the target signal a lack of margin of safety, making it an unattractive proposition for a value investor seeking a price below intrinsic value. The low FCF yield of 1.9% further supports the overvaluation thesis. For a value investor, this is not a company worth investigating further without a substantial price correction.
Market Cap$111.05B
Current Price$742.21
P/E Ratio100.52
Forward P/E—
PEG Ratio1.95
EPS$6.80
Book Value$59.74
P/B Ratio12.42
PWR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 32.8% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.0B
Revenue
12.1B
FY19
11.2B
FY20
13.0B
FY21
17.1B
FY22
20.9B
FY23
23.7B
FY24
28.5B
FY25
Net Income
402M
FY19
446M
FY20
486M
FY21
491M
FY22
745M
FY23
905M
FY24
1.0B
FY25
PWR 52-Week Range
$317.35
$742.21
50-Day MA: $582.48200-Day MA: $467.85
Did you know?
Net income compounded at 16.9% annually over 6 years.
Quanta Services Inc (PWR) Financial Summary
Quanta Services Inc (PWR) is a Industrials company in the Engineering & Construction industry, listed on NYSE. The stock currently trades at $742.21 with a market capitalization of $111.05B.
Key valuation metrics include a P/E ratio of 100.52, price-to-book ratio of 12.42, and EPS of $6.80. The company reports a profit margin of 3.7% and return on equity of 12.4%.
PWR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $111.05B |
| P/E Ratio | 100.52 |
| EPS | $6.80 |
| P/B Ratio | 12.42 |
| P/S Ratio | 3.69 |
| EV/EBITDA | 43.56 |
| Dividend Yield | 0.05% |
| Profit Margin | 3.7% |
| Return on Equity | 12.4% |
| Debt/Equity | 0.72 |
PWR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $12.11B | $402.04M |
| FY20 | $11.20B | $445.60M |
| FY21 | $12.98B | $485.96M |
| FY22 | $17.07B | $491.19M |
| FY23 | $20.88B | $744.69M |
| FY24 | $23.67B | $904.82M |
| FY25 | $28.48B | $1.03B |
Quanta Services Inc (PWR) Valuation
Based on GoodMoat's DCF model, Quanta Services Inc has a fair value estimate of $425.98. At the current price of $742.21, the stock appears 74.2% overvalued relative to our intrinsic value estimate.
PWR Quality Indicators
Quanta Services Inc maintains a profit margin of 3.7% and an operating margin of 5.5%. Return on equity stands at 12.4%. The current ratio is 1.14. Debt-to-equity ratio is 0.72.
About Quanta Services Inc
Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope.
PWR Free Cash Flow
Quanta Services Inc generated $1.62B in trailing twelve-month free cash flow, representing an FCF yield of 1.46%. This low FCF yield may reflect heavy reinvestment or growth spending.
PWR Shares Outstanding
Quanta Services Inc has 0.15 billion shares outstanding at a share price of $742.21, giving it a market capitalization of $111.05B.