What are the investment risks for Quanta Services Inc (PWR)?

P/E 67x and P/S 2.6x price in flawless execution; ROE 13% and ROIC 7.7% both trail industry medians (27%, 16%) - returns don't justify premium Negative tangible book (-630M) from 6.7B goodwill; AR of 6.4B (23% of revenue) creates working capital strain if collections slow

Quanta Services Inc

PWR

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Quanta Services Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Goodwill of 6.7B is 80% of equity (8.4B) with negative tangible book value (-630M) - material impairment risk if M&A underperforms[Goodwill]
5Y revenue CAGR of 20.4% vs industry median 7.2% - 3x faster growth driven by 1.3B TTM acquisitions[Total Revenue 5Y Growth]
P/E of 67x vs industry median 28x - trading at 2.4x sector multiple despite below-median ROE (13% vs 27%)[P/E Ratio]

Watch Triggers

Operating Margin TTM: Expand above 7% sustained — Currently 5.7% vs 9.1% median; margin expansion is only path to justify 67x P/E
Goodwill: Impairment charge or writedown — 6.7B goodwill is 80% of equity; any impairment directly hits book value
Accounts Receivable: DSO exceeds 90 days — 6.4B AR (85 days) already elevated; deterioration signals customer stress

Bull Case

Dominant scale (27.2B revenue TTM, 3x industry median) in fragmented infrastructure services creates pricing power and M&A optionality as smaller competitors struggle with labor/equipment costs

Total Revenue TTMTotal Revenue 5Y Growth

FCF of 1.25B TTM (4.6% yield on 27.2B revenue) funds acquisitions without dilution; 0.72 debt/equity manageable vs peers

Free Cash Flow TTMDebt to Equity

Bear Case

P/E 67x and P/S 2.6x price in flawless execution; ROE 13% and ROIC 7.7% both trail industry medians (27%, 16%) - returns don't justify premium

P/E RatioROE TTMROIC TTM

Negative tangible book (-630M) from 6.7B goodwill; AR of 6.4B (23% of revenue) creates working capital strain if collections slow

GoodwillAccounts ReceivableTangible Book Value

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Infrastructure spending tailwinds should sustain 15%+ revenue growth but margin expansion is key to justifying valuation

1-3ymed

Grid modernization and renewable buildout demand
1.3B annual M&A run-rate expanding capabilities
Operating leverage on fixed cost base

20.4% 5Y revenue CAGR vs 7.2% industryOperating margin 5.7% vs 9.1% median - room to expandEBITDA 2.5B TTM on 27.2B revenue

Valuation Context

Caveats

Public Strategies Rankings

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PWR Fundamentals

Construction → Specialty Trade Contractors

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$70.71B		—
Enterprise Value	$76.12B		—
P/E Ratio	68		—
Total Revenue - TTM	$27.19B	+18.7%	—
Earnings Per Share (diluted) - TTM	$6.88	+26.1%	—
Operating Margin - TTM	5.69%	+0.5%	—
Net Margin - TTM	3.74%	+0.2%	—
Free Cash Flow - TTM	$1.25B	-30.7%	—
Return on Common Equity - TTM	0.13	+0.7%	—
Beta 5Y (Monthly)	unknown		—

PWR Dividend History

29 dividends

2026

$0.1100

01/02/26$0.1100

2025

$0.4000

10/01/25$0.1000

07/01/25$0.1000

04/03/25$0.1000

01/02/25$0.1000

2024

$0.2700

10/01/24$0.0900

07/01/24$0.0900

04/08/24$0.0900

2023

$0.3300

12/29/23$0.0900

09/29/23$0.0800

06/30/23$0.0800

04/06/23$0.0800

2022

$0.3600

12/30/22$0.0800

09/30/22$0.0700

06/30/22$0.0700

04/08/22$0.0700

01/03/22$0.0700

2021

$0.1800

09/30/21$0.0600

06/30/21$0.0600

04/05/21$0.0600

2020

$0.2100

12/31/20$0.0600

09/30/20$0.0500

06/30/20$0.0500

04/03/20$0.0500

2019

$0.1700

12/31/19$0.0500

09/30/19$0.0400

06/28/19$0.0400

04/04/19$0.0400

2018

$0.0400

12/31/18$0.0400

PWR Stock Splits

1 stock split

04/10/002:3 split

PWR SEC Filings

Filing Date	Report Date	Report Type	Filing Link
10/30/25	09/30/25	10-Q	0001050915-25-000111
07/31/25	06/30/25	10-Q	0001050915-25-000103
05/01/25	03/31/25	10-Q	0001050915-25-000047
02/20/25	12/31/24	Unknown	0001050915-25-000005
10/31/24	09/30/24	10-Q	0001050915-24-000159
08/01/24	06/30/24	10-Q	0001050915-24-000140
05/02/24	03/31/24	10-Q	0001050915-24-000082
02/22/24	12/31/23	10-K	0001050915-24-000009
11/02/23	09/30/23	10-Q	0001050915-23-000164
08/03/23	06/30/23	10-Q	0001050915-23-000150
05/04/23	03/31/23	10-Q	0001050915-23-000080
02/23/23	12/31/22	10-K	0001050915-23-000010
11/04/22	09/30/22	10-Q	0001050915-22-000122
08/04/22	06/30/22	10-Q	0001050915-22-000116
05/05/22	03/31/22	10-Q	0001050915-22-000078
02/25/22	12/31/21	10-K	0001050915-22-000008
11/04/21	09/30/21	10-Q	0001050915-21-000114
08/06/21	06/30/21	10-Q	0001050915-21-000103
05/07/21	03/31/21	10-Q	0001050915-21-000072
03/01/21	12/31/20	10-K	0001050915-21-000009
11/02/20	09/30/20	10-Q	0001050915-20-000107
08/10/20	06/30/20	10-Q	0001050915-20-000100
05/08/20	03/31/20	10-Q	0001050915-20-000073
02/28/20	12/31/19	10-K	0001050915-20-000020
11/01/19	09/30/19	10-Q	0001050915-19-000081
08/02/19	06/30/19	10-Q	0001050915-19-000074
05/06/19	03/31/19	10-Q	0001050915-19-000049
02/28/19	12/31/18	10-K	0001050915-19-000014
11/07/18	09/30/18	10-Q	0001050915-18-000065
08/07/18	06/30/18	10-Q	0001050915-18-000061
05/09/18	03/31/18	10-Q	0001050915-18-000027
02/28/18	12/31/17	10-K	0001050915-18-000003
11/09/17	09/30/17	10-Q	0001050915-17-000057
08/08/17	06/30/17	10-Q	0001050915-17-000031
05/09/17	03/31/17	10-Q	0001193125-17-164407
03/01/17	12/31/16	10-K	0001193125-17-064821
11/08/16	09/30/16	10-Q	0001193125-16-762970
08/08/16	06/30/16	10-Q	0001193125-16-675265
05/10/16	03/31/16	10-Q	0001193125-16-585468
02/29/16	12/31/15	10-K	0001193125-16-485494
11/06/15	09/30/15	10-Q	0001193125-15-370391
08/10/15	06/30/15	10-Q	0001193125-15-284664
05/08/15	03/31/15	10-Q	0001193125-15-179586
03/02/15	12/31/14	10-K	0001193125-15-073003
11/06/14	09/30/14	10-Q	0001193125-14-399068
08/08/14	06/30/14	10-Q	0001193125-14-303240
05/08/14	03/31/14	10-Q	0001193125-14-190173
03/03/14	12/31/13	10-K	0001193125-14-079763
11/08/13	09/30/13	10-Q	0001193125-13-435250
08/09/13	06/30/13	10-Q	0001193125-13-328613
05/08/13	03/31/13	10-Q	0001193125-13-206743
03/01/13	12/31/12	10-K	0001193125-13-087221
11/07/12	09/30/12	10-Q	0001193125-12-457556
08/08/12	06/30/12	10-Q	0001193125-12-344072
05/09/12	03/31/12	10-Q	0001193125-12-221254
02/29/12	12/31/11	10-K	0001193125-12-088822
11/08/11	09/30/11	10-Q	0000950123-11-096452
08/05/11	06/30/11	10-Q	0000950123-11-073814
05/06/11	03/31/11	10-Q	0000950123-11-046577
05/31/13	12/31/10	10-K/A	0001193125-13-243285
03/01/11	12/31/10	10-K	0000950123-11-020719
11/09/10	09/30/10	10-Q	0000950123-10-103127
08/09/10	06/30/10	10-Q	0000950123-10-074910
05/10/10	03/31/10	10-Q	0000950123-10-047183
03/01/10	12/31/09	10-K	0000950123-10-019204
11/09/09	09/30/09	10-Q	0000950123-09-060286
08/10/09	06/30/09	10-Q	0000950123-09-032827
05/11/09	03/31/09	10-Q	0000950129-09-001584
03/02/09	12/31/08	10-K	0000950134-09-004251
11/10/08	09/30/08	10-Q	0000950129-08-005551
08/11/08	06/30/08	10-Q	0000950129-08-004408
05/12/08	03/30/08	Unknown	--
02/29/08	12/31/07	10-K	0000950129-08-001378
11/09/07	09/30/07	10-Q	0000950129-07-005546
08/09/07	06/30/07	10-Q	0000950129-07-003886
05/09/07	03/30/07	Unknown	--
02/28/07	12/31/06	10-K	0000950129-07-000940
11/09/06	09/30/06	10-Q	0000950129-06-009585
08/09/06	06/30/06	10-Q	0000950129-06-007738
05/09/06	03/30/06	Unknown	--
03/02/06	12/31/05	10-K	0000950129-06-002185
11/09/05	09/30/05	10-Q	0000950129-05-010787
08/09/05	06/30/05	10-Q	0000950129-05-007998
05/10/05	03/30/05	Unknown	--
03/16/05	12/31/04	10-K	0000950129-05-002505
11/09/04	09/30/04	8-K	0000950129-04-007548
08/09/04	06/30/04	10-Q	0000950129-04-005784
05/10/04	03/30/04	Unknown	--
03/15/04	12/31/03	10-K	0000950129-04-001307
11/14/03	09/30/03	8-K	0000950129-03-004896
08/14/03	06/30/03	10-Q	0000950129-03-004232
05/15/03	03/30/03	Unknown	--
03/31/03	12/31/02	4/A	0000950172-02-002892
11/14/02	09/30/02	10-Q	0000950129-02-005708
08/14/02	06/30/02	10-Q	0000950129-02-004214
05/15/02	03/30/02	Unknown	--
04/01/02	12/31/01	4	0000899243-02-000026
11/14/01	09/30/01	10-Q	0000950129-01-504086
08/14/01	06/30/01	10-Q	0000950129-01-502576
05/15/01	03/30/01	Unknown	--
04/02/01	12/31/00	5	0000899243-01-000348
11/14/00	09/30/00	10-Q	0000950129-00-005517
08/14/00	06/30/00	10-Q	0000950129-00-004166
05/15/00	03/30/00	Unknown	--