Quanta Services (PWR) AI Stock Analysis

• Market Cap: $60.35B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 65.5
• Beta (1Y): 1.43
• Revenue Growth: 15.77%
• EPS Growth: 19.58%
• Country: US
• Employees: 58,400
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 1.78
• Shares Outstanding: 148,198,720
• 10 Day Avg. Volume: 979,632
• 30 Day Avg. Volume: 1,029,810
• PEG Ratio: 23.76
• Price to Book (P/B): 7.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.20
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 17.42
• Enterprise Value/Ebitda: 7.67
• 1Y Price Target: $381.39
• Price Target Upside: -9.55% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 77 Outperform
• Price Target: $452.00 ▲(7.19%Upside)

Quanta Services' strong financial performance and positive earnings call drive the overall score. The technical analysis indicates short-term overbought conditions, and the high valuation suggests caution. Despite these factors, the company's strategic positioning and growth potential remain robust.

Positive Factors

Growth Potential

Quanta Services is considered a key partner for utilities due to its ability to handle complex end-to-end solutions as the scale of utility projects grows.

Industry Partnerships

PWR is an increasingly indispensable partner to the largest North American utilities and renewable power developers.

Market Positioning

Quanta Services has positioned itself as a premier solutions provider in the utility services industry, benefiting from grid reinvestment needs that support multi-year growth.

Negative Factors

Financial Leverage

To consider upgrading the stock, a cheaper valuation and/or lower financial leverage is awaited.

Margin Expansion

Uncertain about the same potential for margin expansion.

Valuation Concerns

PWR is trading at a nearly 60% premium to its EPC peers, a premium that's at multiyear highs.

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 through a variety of contracting services across its two main business segments. The Electric Power Infrastructure Solutions segment is its largest revenue contributor, providing services such as the construction and maintenance of electric power transmission and distribution networks, substations, and renewable energy generation facilities. The Underground Utility and Infrastructure Solutions segment contributes by offering services related to pipeline construction, repair, and maintenance for natural gas and oil industries. Quanta Services' earnings are bolstered by long-term contracts with utility companies, energy firms, and governmental bodies, ensuring a steady stream of revenue. The company also benefits from the growing demand for renewable energy infrastructure and the expansion of telecommunications networks, which drive additional service opportunities.

Quanta Services Financial Statement Overview

Summary

Quanta Services displays a strong financial performance, with consistent revenue growth, solid profitability margins, and a well-capitalized balance sheet. The company maintains a healthy cash flow position despite a decline in free cash flow growth. Overall, financial health is solid, providing a stable foundation for continued growth.

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
EBITDA	2.16B	1.77B	1.48B	1.05B	911.03M
Net Income	904.82M	744.69M	491.19M	485.96M	445.60M
Balance Sheet
Total Assets	18.68B	16.24B	13.46B	12.86B	8.40B
Cash, Cash Equivalents and Short-Term Investments	741.96M	1.29B	428.50M	229.10M	184.62M
Total Debt	4.48B	4.46B	3.98B	4.00B	1.45B
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: 421.68
• 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 421.68 is above the 20-day moving average (MA) of 389.61, above the 50-day MA of 367.44, and above the 200-day MA of 318.14, indicating a bullish trend. The MACD of 12.90 indicates Negative momentum. The RSI at 77.28 is Negative, neither overbought nor oversold. The STOCH value of 92.55 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
ACM	80 Outperform	$14.96B	24.74	28.07%	0.87%	4.55%	―
FIX	79 Outperform	$19.85B	28.92	40.09%	0.22%	26.33%	63.32%
PWR	77 Outperform	$60.35B	65.50	13.48%	0.09%	15.77%	19.58%
EME	74 Outperform	$25.91B	25.35	37.76%	0.16%	14.30%	49.19%
MTZ	73 Outperform	$14.34B	67.10	7.70%	―	3.03%	―
J	72 Outperform	$17.05B	39.09	8.46%	0.82%	-22.81%	-30.13%
Sector *	65 Neutral	$11.05B	15.76	5.13%	1.92%	3.11%	-24.90%

Quanta Services Corporate Events

Quanta Services Approves Equity Plan Amendment at Annual Meeting

On May 22, 2025, Quanta Services held its Annual Meeting of Stockholders, where stockholders approved an amendment to the 2019 Omnibus Equity Incentive Plan, increasing the number of shares by 4,190,000. Additionally, Derrick Jensen resigned as Executive Vice President of Business Administration, transitioning to an advisory role. The meeting also saw the election of ten directors and the approval of executive compensation and the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (PWR) stock is a Buy with a $288.00 price target. To see the full list of analyst forecasts on Quanta Services stock, see the PWR Stock Forecast page.

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.