PWR Quanta Services, Inc. - Fundamental Analysis
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PWR Stock | Fundamental Analysis & Investment Insights
NYSE
Industrials
Engineering & Construction
Current Price
Live
$429.3
Analyst Target
$468.62
+9.2%
Upside
52W High
$469.43
52W Low
$227.08
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$64.02B
P/E
63.69
ROE
13.4%
Profit margin
3.7%
Debt/Equity
0.72
Dividend yield
0.09%
AI Analysis
AI-powered fundamental assessment
Confidence
72%
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 analysis across 5 key categories
Overall
58
Moderate
45
80
85
78
0
AI Verdict
Quanta Services exhibits strong growth execution and solid balance sheet health but trades at a substantial premium to both its fundamentals and peer group, with P/E nearly double the sector average; while future growth in energy infrastructure supports premium valuation, current price appears to reflect near-perfect execution, leaving limited margin for error.
Key drivers: Structural growth in U.S. power grid and renewable transmission infrastructure, Consistent earnings outperformance across 25 consecutive quarters, Valuation de-rating risk due to high multiple and insider selling
Confidence
75%
Value
45/100
Quanta's valuation multiples are outliers within the industrials sector, where even high-quality peers like ITW (P/E 23.64) and NSC (P/E 21.64) trade at a fraction of its multiple despite stronger profitability profiles.
Positives
- Forward P/E of 42.25 is lower than current P/E of 63.69, suggesting some earnings growth is priced in
- Price/Sales of 2.35 may be justifiable given 17.5% revenue growth, above sector average
Watchpoints
- Current P/E of 63.69 is extremely high relative to sector average of 31.74 and even high-growth peers
- Price/Book of 7.62 is elevated compared to sector capital-intensive nature and Quanta's 13.37% ROE
Future
80/100
The company is on a strong growth trajectory with accelerating earnings and robust demand backdrop in grid modernization, yet price momentum has softened recently, indicating potential overheating after a 32.7% 1-year gain.
Positives
- 17.5% YoY revenue growth and 22.4% EPS growth demonstrate strong demand for energy infrastructure services
- Q/Q EPS growth of 34.3% in most recent quarter signals accelerating momentum
Watchpoints
- Forward P/E of 42.25 implies sustained high growth, increasing vulnerability to deceleration
- Recent 1-week and 1-month price declines suggest market skepticism despite strong fundamentals
Past
85/100
Quanta has delivered one of the most consistent earnings records in the sector over the past six years, with explosive share price appreciation, though margin progression has lagged behind revenue growth.
Positives
- 23 of 25 quarters beat EPS estimates, with multiple >10% surprises, demonstrating exceptional predictability
- 5-year share price return of +524.9% reflects sustained outperformance and investor confidence
Watchpoints
- Profitability metrics (ROE 13.37%, ROA 4.79%) have remained stable but not expanding, despite revenue surge
- Gross and operating margins have not materially improved over time, suggesting cost pressures
Health
78/100
Quanta maintains a healthier capital structure than most industrial peers, particularly compared to leveraged names like ITW (Debt/Equity 2.79), though incomplete cash flow data prevents full stress-testing of liquidity.
Positives
- Debt/Equity of 0.72 is conservative relative to sector average of 1.23, providing financial flexibility
- Current and Quick Ratios of 1.34 and 1.21 indicate solid short-term liquidity
Watchpoints
- Missing Total Debt and Cash figures limit full assessment of leverage and refinancing risk
- Operating cash flow and free cash flow data unavailable, obscuring true cash generation ability
Dividend
0/100
The dividend is functionally irrelevant as a value driver, with a near-zero yield and no track record of increases, typical of growth-oriented industrials but a disadvantage in current rate environment.
Positives
- Low payout ratio of 5.93% indicates dividend is highly sustainable
Watchpoints
- Minimal yield of 0.09% offers no meaningful income return
- No history of dividend growth or capital return focus
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$429.3
Analyst Target
$468.62
Upside/Downside
+9.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for PWR and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
PWR
Quanta Services, Inc.
Primary
|
+524.9% | +199.4% | +32.7% | +24.6% | -1.8% | -3.5% |
|
PCAR
PACCAR Inc
Peer
|
+145.8% | +100.3% | +13.8% | +32.1% | +10.1% | +2.1% |
|
CMI
Cummins Inc.
Peer
|
+125.6% | +98.6% | +29.8% | +39.8% | +9.3% | -2.3% |
|
RSG
Republic Services, Inc.
Peer
|
+120.4% | +68.9% | +1.2% | -14.9% | -5.1% | +2.0% |
|
NSC
Norfolk Southern Corporation
Peer
|
+29.1% | +21.3% | +20.1% | +6.1% | -1.3% | +1.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
63.69
Forward P/E
42.25
PEG Ratio
N/A
P/B Ratio
7.62
P/S Ratio
2.35
EV/Revenue
2.55
EV/EBITDA
28.2
Market Cap
$64.02B
Profitability
Profit margins and return metrics
Profit Margin
3.74%
Operating Margin
7.11%
Gross Margin
15.16%
ROE
13.37%
ROA
4.79%
Growth
Revenue and earnings growth rates
Revenue Growth
+17.5%
Earnings Growth
+14.9%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+15.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.72
Moderate
Current Ratio
1.34
Good
Quick Ratio
1.21
Good
Cash/Share
$4.09
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-19
$N/A
2025-10-30
$3.33
+2.2% surprise
2025-07-31
$2.48
+1.1% surprise
2025-05-01
$1.78
+6.9% surprise
Industrials Sector Comparison
Comparing PWR against 122 companies in the Industrials sector
(6 bullish, 58 neutral, 58 bearish)
P/E Ratio
63.69
This Stock
vs
73.3
Sector Avg
-13.1%
(Discount)
Return on Equity (ROE)
13.37%
This Stock
vs
7.81%
Sector Avg
+71.2%
(Excellent)
Profit Margin
3.74%
This Stock
vs
58.21%
Sector Avg
-93.6%
(Weaker)
Debt to Equity
0.72
This Stock
vs
5.47
Sector Avg
-86.9%
(Less Debt)
Revenue Growth
17.5%
This Stock
vs
21.73%
Sector Avg
-19.5%
(Slower)
Current Ratio
1.34
This Stock
vs
2.66
Sector Avg
-49.5%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
PWR
Quanta Services, Inc.
|
NEUTRAL | $64.02B | 63.69 | 13.4% | 3.7% | $429.3 | |
|
PCAR
PACCAR Inc
|
NEUTRAL | $63.74B | 23.8 | 14.2% | 9.1% | $121.36 | |
|
CMI
Cummins Inc.
|
NEUTRAL | $64.53B | 23.98 | 22.8% | 7.9% | $462.61 | |
|
RSG
Republic Services, Inc.
|
NEUTRAL | $64.95B | 31.17 | 18.2% | 12.8% | $209.8 | |
|
NSC
Norfolk Southern Corporation
|
NEUTRAL | $65.21B | 22.17 | 20.5% | 24.2% | $290.63 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-06 | DUCEY GERALD A JR | Officer | Sale | 7,653 | $3,413,850 |
| 2025-11-06 | WAYNE DONALD CHARLES | General Counsel | Sale | 14,000 | $6,213,343 |
| 2025-11-06 | WAYNE DONALD CHARLES | General Counsel | Gift | 500 | - |
| 2025-11-05 | JACKMAN WORTHING F | Director | Sale | 6,349 | $2,859,907 |
| 2025-11-05 | JACKMAN WORTHING F | Director | Gift | 800 | - |
| 2025-11-03 | FRIED BERNARD | Director | Sale | 4,000 | $1,808,760 |
| 2025-11-03 | DESAI JAYSHREE S | Chief Financial Officer | Gift | 455 | - |
| 2025-05-30 | BAXTER WARNER L | Director | Stock Award | 622 | - |
| 2025-05-30 | WYRSCH MARTHA B. | Director | Stock Award | 622 | - |
| 2025-05-30 | JACKMAN WORTHING F | Director | Stock Award | 622 | - |
| 2025-05-30 | FRIED BERNARD | Director | Stock Award | 622 | - |
| 2025-05-30 | ROWE ROBERT SCOTT | Director | Stock Award | 622 | - |
| 2025-05-30 | BENEBY DOYLE NOLAN | Director | Stock Award | 998 | - |
| 2025-05-30 | VALENTIN RAUL JAVIER | Director | Stock Award | 622 | - |
| 2025-05-30 | DEPASS OLSOVSKY JOSEPHINE ANN MARIE | Director | Stock Award | 622 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
24 analysts
Jefferies
2025-11-03
Buy
Buy
Citigroup
2025-10-31
Buy
Buy
JP Morgan
2025-10-31
Neutral
Neutral
Evercore ISI Group
2025-10-31
Outperform
Outperform
Citigroup
2025-10-20
Buy
Buy
JP Morgan
2025-10-16
Neutral
Neutral
Stifel
2025-10-09
Buy
Buy
Truist Securities
2025-10-08
Buy
Buy
Jefferies
2025-09-24
Hold
Buy
Mizuho
2025-09-04
Neutral
Past News Coverage
Recent headlines mentioning PWR from our newsroom.
Newest → oldest
No matching news yet.