Quanta Services (PWR) AI Stock Analysis

• Market Cap: $47.59B
• Dividend Yield: 0.12%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.42
• Revenue Growth: 15.77%
• EPS Growth: 19.58%
• Country: US
• Employees: 58,400
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 6.19
• Shares Outstanding: 148,198,720
• 10 Day Avg. Volume: 1,550,324
• 30 Day Avg. Volume: 1,461,702
• PEG Ratio: 2.72
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 12.14
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $339.78
• Price Target Upside: 5.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

Quanta Services is well-positioned in the Engineering & Construction industry, with strong financial performance and positive earnings guidance. However, the high valuation and potential overbought technical indicators suggest caution. The company’s strategic initiatives and market position contribute positively, but valuation concerns weigh on the overall score.

Positive Factors

Earnings

Quanta Services posted another solid quarter where the company beat adjusted EPS expectations and increased its FY25 guidance.

Financial Performance

The company's Electric Infrastructure Solutions and Renewable segments are expected to grow significantly with improved operating margins.

Growth Opportunities

PWR has multiple avenues for growth and attractive risk/reward from here.

Negative Factors

Operational Synergies

Comments from the company suggest that there are operational and financial synergies still being discovered for Cupertino that are not reflected in current guidance.

Revenue Uncertainty

There was some concern regarding whether PWR’s revenue target for 2025 had been helped by acquisitions.

Valuation

PWR is considered fairly valued as its valuation already reflects the company’s superior performance, leading to a Neutral rating.

Quanta Services Business Overview & Revenue Model

Company Description

Quanta Services, Inc. provides specialty contracting services worldwide. The Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; energized installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The Renewable Energy Infrastructure Solutions segment is the involved in engineering, procurement, construction, upgrade, repair, and maintenance services to renewable generation facilities, such as wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The Underground Utility and Infrastructure Solutions segment offers design, engineering, construction, upgrade repair, and maintenance services to customers involved in the transportation, distribution, storage and processing of natural gas, oil, and other products; fabrication of pipeline support systems and related structures and facilities; and engineering and construction of pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. Quanta Services, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.

How the Company Makes Money

Quanta Services generates revenue primarily through its contract-based services offered to utility, energy, and industrial companies. The company earns money by providing end-to-end solutions for electric power and energy infrastructure projects, including the development and maintenance of transmission and distribution systems, substations, and renewable energy facilities. A significant portion of its revenue comes from long-term contracts and service agreements with large utility companies and energy producers. Additionally, Quanta Services benefits from strategic partnerships with entities seeking to expand or upgrade their infrastructure capabilities, along with favorable regulatory environments that encourage investment in energy infrastructure.

Quanta Services Financial Statement Overview

Summary

Quanta Services maintains a strong financial position with consistent revenue and profit growth, sound profitability margins, and a well-capitalized balance sheet with low leverage. The company's cash flow generation remains robust, supporting strategic initiatives and financial stability. Despite minor areas for improvement like free cash flow growth, the overall financial health is solid.

Income Statement

Quanta Services demonstrates a strong financial performance with consistent revenue growth, as evidenced by the revenue growth rate of 5.07% from the previous year to the TTM (Trailing-Twelve-Months) period. The company maintains healthy profitability margins, with a gross profit margin of 14.20% and a net profit margin of 3.74% in the TTM period. The EBIT and EBITDA margins are solid at 5.76% and 8.16%, respectively, indicating effective cost management and operational efficiency. Overall, the income statement reflects robust growth and profitability, positioning the company well within its industry.

Balance Sheet

The balance sheet of Quanta Services indicates a stable financial position. The debt-to-equity ratio has significantly improved to 0.05 in the TTM period, a marked reduction from previous years, suggesting a strong equity base and reduced leverage risk. The return on equity (ROE) stands at a healthy 12.48%, showcasing effective utilization of shareholders' investments. The equity ratio of 38.97% indicates a solid proportion of assets financed by equity, providing a cushion against financial volatility. These metrics reflect a well-managed balance sheet with low leverage and strong equity support.

Cash Flow

Quanta Services displays a robust cash flow position with a free cash flow growth rate of -10.47%, indicating slight declines compared to previous periods. However, the operating cash flow to net income ratio of 1.98 in the TTM period highlights strong cash generation capabilities relative to profits. The free cash flow to net income ratio is 1.42, showing that the company efficiently converts its earnings into cash flow. Overall, the cash flow statement suggests strong liquidity and cash generation, providing financial flexibility for future investments and operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.67B	20.88B	17.07B	12.98B	11.20B
	Gross Profit
3.51B	2.94B	2.53B	1.95B	1.66B
	EBIT
1.35B	1.13B	872.06M	663.52M	611.37M
	EBITDA
2.16B	1.77B	1.48B	1.05B	911.03M
	Net Income Common Stockholders
904.82M	744.69M	491.19M	485.96M	445.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
741.96M	1.29B	428.50M	229.10M	184.62M
	Total Assets
18.68B	16.24B	13.46B	12.86B	8.40B
	Total Debt
4.48B	4.46B	3.98B	4.00B	1.45B
	Net Debt
3.74B	3.17B	3.55B	3.77B	1.27B
	Total Liabilities
11.35B	9.95B	8.07B	7.74B	4.05B
	Stockholders Equity
7.32B	6.27B	5.38B	5.11B	4.34B
Cash Flow		Free Cash Flow
1.48B	1.14B	701.53M	195.67M	855.40M
	Operating Cash Flow
2.08B	1.58B	1.13B	582.39M	1.12B
	Investing Cash Flow
-2.29B	-989.65M	-617.19M	-2.90B	-499.32M
	Financing Cash Flow
-305.64M	268.50M	-311.07M	2.36B	-601.37M

Quanta Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 321.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWR, the sentiment is Positive. The current price of 321.14 is above the 20-day moving average (MA) of 274.69, above the 50-day MA of 264.98, and above the 200-day MA of 291.30, indicating a bullish trend. The MACD of 11.90 indicates Negative momentum. The RSI at 72.75 is Negative, neither overbought nor oversold. The STOCH value of 91.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PWR.

Quanta Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	85 Outperform	$19.25B	19.99	37.76%	0.23%	14.30%	49.19%
ACM	80 Outperform	$13.58B	29.12	26.35%	0.94%	8.89%	669.67%
FIX	78 Outperform	$15.24B	25.92	37.81%	0.31%	31.47%	64.96%
PWR	71 Outperform	$47.59B	53.26	13.48%	0.12%	15.77%	19.58%
J	71 Outperform	$15.52B	26.10	10.92%	0.94%	-13.76%	-13.39%
MTZ	69 Neutral	$11.12B	68.55	7.70%	―	2.56%	―
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%

Quanta Services Corporate Events

Quanta Services Reports Strong Q1 2025 Financial Results

Quanta Services reported strong financial results for the first quarter of 2025, with revenues reaching $6.23 billion, marking a significant increase from the previous year. The company achieved record backlog and adjusted earnings, reflecting its resilience and strategic execution amid macroeconomic uncertainties. Quanta’s selection for a major electric transmission upgrade project and credit rating upgrades further bolster its market position. Despite challenges such as trade tariffs and supply chain uncertainties, Quanta remains proactive in mitigating risks and expects continued growth, raising its full-year financial expectations.

Spark’s Take on PWR Stock

According to Spark, TipRanks’ AI Analyst, PWR is a Neutral.

Quanta Services’ strong financial growth and solid balance sheet are offset by liquidity concerns due to absent cash flow reporting. Technical indicators show mixed trends, and the stock’s high valuation raises caution. Positive earnings guidance and corporate events highlight growth potential, but liquidity management is crucial.

To see Spark’s full report on PWR stock, click here.

Quanta Services Unveils 2025 Incentive Plans for Employees

On February 27, 2025, Quanta Services, Inc. announced the adoption of its 2025 annual incentive plan for corporate employees, a long-term incentive plan for senior leadership, and a discretionary plan for all employees. These plans include incentive compensation awards in cash, restricted stock units, and performance stock units, with specific target incentives for executive officers. The performance metrics for these plans focus on EBITDA, EBITDA margin, safety, return on invested capital, earnings per share, and total stockholder return, impacting the company’s operational focus and stakeholder interests.

Quanta Services Reports Strong 2024 Financial Results

Quanta Services reported strong financial results for the fourth quarter and full year of 2024, with significant increases in revenue, net income, and adjusted earnings per share compared to the previous year. The company achieved record revenues of $23.67 billion for the year and anticipates continued growth in 2025, driven by its robust project backlog and strategic acquisitions, including a large fiber build project and new acquisitions in the U.S. and Australia. Quanta remains well-positioned to capitalize on industry trends and expand its market presence as a leader in infrastructure solutions.