PWR Quanta Services, Inc. - Fundamental Analysis
NEUTRAL
PWR Stock | Fundamental Analysis & Investment Insights
NYSE
•
Industrials
•
Engineering & Construction
Current Price
$429.3
Analyst Target
$468.62
+9.2% Upside
52W High
$469.43
52W Low
$227.08
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Quanta Services (PWR) trades at a significant premium to peers with a P/E of 63.69 versus an industrial sector average of 31.74, reflecting strong historical growth and market momentum, including a 524.9% return over five years. The company has demonstrated consistent earnings beats over the past 25 quarters, with recent YoY EPS growth of 22.4% and robust revenue growth of 17.5%, signaling durable execution in high-demand energy infrastructure markets. However, stretched valuations, declining insider sentiment with $14.3M in recent director and officer sales, and below-sector profitability (3.74% net margin vs 13.68% sector avg) raise sustainability concerns. While analysts maintain a 'buy' rating with a $468.62 target implying 9.2% upside, the stock appears fairly valued relative to growth-adjusted fundamentals and faces near-term headwinds from elevated multiples and profit margin pressure.
Key Strengths
Exceptional earnings growth trajectory with 17.5% YoY revenue growth and 22.4% YoY EPS growth, significantly outpacing the industrial sector average of 5.59%
Outstanding quarterly earnings consistency: 23 out of 25 quarters beat estimates, with an average surprise of 3.41% and multiple double-digit beats since 2020
Strong analyst alignment with a $468.62 mean target price, implying 9.2% upside from current levels, supported by 24 analysts
Solid financial health with a Debt/Equity ratio of 0.72, below the sector average of 1.23, and healthy liquidity (Current Ratio: 1.34, Quick Ratio: 1.21)
Dominant market position in high-growth energy infrastructure, particularly in electric transmission and renewable integration, benefiting from structural tailwinds in grid modernization
Key Risks
Extremely elevated valuation: P/E of 63.69 is nearly double the sector average (31.74) and Forward P/E of 42.25 still reflects aggressive growth pricing
Deteriorating insider sentiment: $14.3M in net insider sales over the last 6 months by officers and directors, signaling lack of confidence at current price levels
Below-average profitability: 3.74% net margin and 7.11% operating margin lag far behind sector averages of 13.68% and ~15%+ respectively, raising concerns about pricing power and cost structure
Limited dividend appeal: 0.09% yield and lack of meaningful income profile may deter long-term core holders, especially in a higher-rate environment
Recent price weakness: -3.5% over 1 week and -1.8% over 1 month despite strong earnings, suggesting market digestion after a 32.7% 1-year run and proximity to 52-week high
AI Fair Value Estimate
Based on comprehensive analysis
$430.0
+0.2% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare PWR against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations