Now trading at a price of $167.65, Quanta Services has moved -2.4% so far today.
Quanta Services returned gains of 27.0% last year, with its stock price reaching a high of $212.82 and a low of $123.25. Over the same period, the stock outperformed the S&P 500 index by 12.0%. More recently, the company's 50-day average price was $199.46. Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries worldwide. Based in Houston, TX, the large-cap Industrials company has 47,300 full time employees. Quanta Services has offered a 0.2% dividend yield over the last 12 months.
Overview of the Company's Finances:
| 2018-02-28 | 2019-02-28 | 2020-02-28 | 2021-03-01 | 2022-02-25 | 2023-02-23 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $9,466 | $11,171 | $12,112 | $11,203 | $12,980 | $17,074 |
| Gross Margins | 13.0% | 13.0% | 13.0% | 15.0% | 15.0% | 15.0% |
| Operating Margins | 5% | 5% | 5% | 5% | 5% | 5% |
| Net Margins | 3.0% | 3.0% | 3.0% | 4.0% | 4.0% | 3.0% |
| Net Income (MM) | $315 | $293 | $402 | $446 | $486 | $491 |
| Earnings Per Share | $2.0 | $1.9 | $2.73 | $3.07 | $3.37 | $3.32 |
| EPS Growth | n/a | -5.0% | 43.68% | 12.45% | 9.77% | -1.48% |
| Diluted Shares (MM) | 157 | 154 | 148 | 145 | 144 | 148 |
| Free Cash Flow (MM) | $594 | $620 | $758 | $1,341 | $920 | $1,497 |
| Capital Expenditures (MM) | -$221 | -$261 | -$231 | -$225 | -$338 | -$367 |
| Net Current Assets (MM) | $185 | -$144 | -$447 | -$461 | -$3,006 | -$2,529 |
| Long Term Debt (MM) | $671 | $1,041 | $1,292 | $1,174 | $3,724 | $3,692 |
| Net Debt / EBITDA | 0.82 | 1.25 | 1.39 | 1.1 | 3.35 | 2.23 |
Quanta Services has average operating margins with a stable trend, a strong EPS growth trend, and healthy leverage. However, the firm has slimmer gross margins than its peers. Finally, we note that Quanta Services has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and a decent current ratio.
Quanta Services's Valuation Is in Line With Its Sector Averages:
Quanta Services has a trailing twelve month P/E ratio of 51.5, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $8.39, the company has a forward P/E ratio of 23.8. Quanta Services's PEG ratio is 5.79 on the basis of the 8.9% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Quanta Services is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.25 is higher than the sector average of 3.78. The company's shares are currently trading 221.2% above their Graham number.
Quanta Services Has an Analyst Consensus of Strong Upside Potential:
The 13 analysts following Quanta Services have set target prices ranging from $190.0 to $236.0 per share, for an average of $222.0 with a buy rating. As of April 2023, the company is trading -10.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Quanta Services has an average amount of shares sold short because 2.9% of the company's shares are sold short. Institutions own 92.2% of the company's shares, and the insider ownership rate stands at 1.35%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,697,456,212.
