Quanta Services (PWR) AI Stock Analysis

• Market Cap: $43.40B
• Dividend Yield: 0.13%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 48.5
• Beta (1Y): 1.38
• Revenue Growth: 13.36%
• EPS Growth: 20.00%
• Country: US
• Employees: 58,400
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 6.02
• Shares Outstanding: 148,263,630
• 10 Day Avg. Volume: 1,216,073
• 30 Day Avg. Volume: 1,365,462
• PEG Ratio: 2.43
• 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: 1.18
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.63
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $339.78
• Price Target Upside: 5.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

Quanta Services shows strong financial performance and positive earnings guidance, which are significant positive factors. However, liquidity concerns and high valuation present notable risks. Technical indicators reflect mixed signals, further influencing 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. (PWR) is a leading provider of specialized contracting services, delivering comprehensive infrastructure solutions primarily for the electric power and energy industries. The company operates in several key sectors, including electric power infrastructure services, renewable energy, and pipeline and industrial services. Quanta Services offers a broad range of services, such as design, installation, repair, and maintenance of energy infrastructure, enabling clients to efficiently manage their energy resources.

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 exhibits strong revenue growth and profitability improvements, supported by a solid balance sheet with improved leverage ratios. However, the absence of reported cash flow in 2024 presents a risk that requires attention to ensure liquidity and support operations.

Income Statement

Quanta Services has shown a robust revenue growth, with a 13.37% increase from 2023 to 2024. The gross profit margin stands at 14.83% for 2024, indicating efficient cost management. The net profit margin improved to 3.82%, reflecting enhanced profitability. EBIT and EBITDA margins of 5.68% indicate solid operational performance. Overall, strong revenue growth and margin improvements highlight a positive trend in profitability.

Balance Sheet

The company's debt-to-equity ratio improved significantly to 0.05 in 2024, showcasing a strong capital structure. Return on equity (ROE) increased to 12.37%, indicating efficient use of shareholders' funds. The equity ratio of 39.16% suggests a healthy balance sheet, although there is room for improvement in reducing liabilities further. Overall, the balance sheet reflects a strong position with improved leverage and profitability metrics.

Cash Flow

Quanta Services faced challenges in 2024 with no reported operating cash flow and free cash flow, indicating potential liquidity constraints. The absence of these cash flows raises concerns about cash generation capabilities. While historical free cash flow growth was positive, the lack of cash flow data in 2024 limits a full assessment of cash flow strength. The company needs to address cash flow generation to ensure financial stability.

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
379.20M	4.46B	3.98B	4.00B	1.45B
	Net Debt
-362.76M	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: 321.93
• 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 321.93 is above the 20-day moving average (MA) of 271.23, above the 50-day MA of 264.18, and above the 200-day MA of 290.99, indicating a bullish trend. The MACD of 9.78 indicates Negative momentum. The RSI at 73.33 is Negative, neither overbought nor oversold. The STOCH value of 94.12 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	$18.46B	19.17	37.25%	0.25%	15.76%	61.64%
ACM	80 Outperform	$13.30B	28.52	26.35%	0.93%	8.89%	669.67%
FIX	78 Outperform	$14.75B	25.08	37.81%	0.34%	31.47%	64.96%
MTZ	76 Outperform	$10.07B	61.96	5.80%	―	2.56%	―
PWR	68 Neutral	$43.40B	48.54	13.32%	0.13%	13.36%	20.00%
J	68 Neutral	$15.17B	25.50	10.92%	0.96%	-13.76%	-13.39%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%

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.