Quality Investor

Quanta Services, Inc.

Rank #408Op. Leverage

PWR · NYSE · Industrials

Quanta Services, Inc. (PWR) — Rank #408 by gross profitability (GP/assets 0.15) · ROE 10.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001050915 · all metrics point-in-time as of the filing date.

About

Quanta Services, Inc. offers infrastructure solutions for the electric and gas utility, power generation, load center, manufacturing, communications, pipeline, and energy industries.

Show more

The company's Electric Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; 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 offers aviation; emergency aerial firefighting services; emergency restoration; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, technology companies, and other customers; engineering, procurement, new construction, and repair and maintenance services for renewable generation facilities; and training for electric workers, as well as training for the gas distribution and communications industries. Its Underground Utility and Infrastructure Solutions segment is involved in the transportation, distribution, storage, development, and processing of natural gas, oil, and other products, as well as owns and operates large load centers. This segment also engages in the design, engineering, procurement, construction, upgrade, and repair and maintenance services for natural gas systems; pipeline protection, integrity testing, rehabilitation, and replacement services; and catalyst replacement, high-pressure and critical-path turnaround, instrumentation and electrical, piping, fabrication, and storage tank services. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997.

The company was incorporated in 1997 and is headquartered in Houston, Texas.

Industry
Engineering & Construction
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

PWR+465.3% · +41.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$92.23B

P/E (annual)

90.2

P/S (annual)

3.2

P/B

9.6

P/OCF (annual)

41.4

Shareholder Yield

-0.8%

Employees

69,500

Industry

Engineering & Construction

Exchange

NYSE

Signal Flags

4 green2 red
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.15
Return on equity
10.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.90
Current ratio
1.10×
Net cash
$257.30M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.6%

Growth

2/2 pass
Revenue growth
20.3%
Piotroski F-Score
N/A
Share dilution
0.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

23.0%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.8% — per-share value needs a total required return of 23.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 18.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

17.8%

r = 10% (base)

23.0%

r = 12%

27.5%

Net debt / market cap: -0.3%

Base FCF: $1.5B3Y mean FCF: $1.4B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

81.5xExpensive
14.0xmed 30.3x81.5x

P / S

Price / revenue per share

2.9xExpensive
0.5xmed 1.2x2.9x

P / B

Price / book value per share

9.4xExpensive
1.4xmed 3.0x9.4x

P / GP

Price / gross profit per share

19.6xExpensive
3.5xmed 7.8x19.6x

P / FCF

Price / free cash flow per share

55.2xExpensive
14.5xmed 32.5x84.3x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.15

Primary signal (Novy-Marx).

Return on equity

10.7%

Gross margin

15.0%

Revenue growth (YoY)

20.3%

RPO growth (YoY)

41.8%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

18.6%

Revenue CAGR (5Y)

20.5%

Earnings CAGR (3Y)

27.9%

FCF CAGR (3Y)

29.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.90

Current ratio

1.10×

Quick ratio

0.84×

Net cash

$257.30M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.52B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.48

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Dividend safety

Composite score

3.5 / 5

Good
Payout ratio
5.9%5/5 Strong
FCF coverage
25.12×5/5 Strong
Dividend growth streak
6 yr3/5 Good
Balance-sheet health
D/E 1.90 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Value
Capital Return
Hypergrowth
Op. Leverage