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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.3%
Sector: 8.9%
Dividend Analysis audit
GROWTH
0.09%
Trailing Yield
$0.09
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
7%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, QUANTA SERVICES, INC. (PWR) receives a "Hold" rating with a composite score of 50.5/100, ranked #320 out of 4446 stocks. Key factor scores: Quality 50/100, Value 47/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
QUANTA SERVICES, INC. (PWR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does QUANTA SERVICES, INC. Do?
Quanta Services, Inc. provides specialty contracting services worldwide. The Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; energized 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 also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The Renewable Energy Infrastructure Solutions segment is the involved in engineering, procurement, construction, upgrade, repair, and maintenance services to renewable generation facilities, such as wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The Underground Utility and Infrastructure Solutions segment offers design, engineering, construction, upgrade repair, and maintenance services to customers involved in the transportation, distribution, storage and processing of natural gas, oil, and other products; fabrication of pipeline support systems and related structures and facilities; and engineering and construction of pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. Quanta Services, Inc. was incorporated in 1997 and is headquartered in Houston, Texas. QUANTA SERVICES, INC. (PWR) is classified as a large-cap stock in the Industrials sector, specifically within the Construction industry. The company is led by CEO Earl C. Austin and employs approximately 47,300 people, headquartered in Wilmington, Texas. With a market capitalization of $83.8B, PWR is one of the prominent companies in the Industrials sector.
QUANTA SERVICES, INC. (PWR) Stock Rating — Hold (April 2026)
As of April 2026, QUANTA SERVICES, INC. receives a Hold rating with a composite score of 50.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PWR ranks #320 out of 4,446 stocks in our coverage universe. Within the Industrials sector, QUANTA SERVICES, INC. ranks #58 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PWR Stock Price and 52-Week Range
QUANTA SERVICES, INC. (PWR) currently trades at $585.36. The stock gained $3.30 (0.6%) in the most recent trading session. The 52-week high for PWR is $583.73, which means the stock is currently trading 0.3% from its annual peak. The 52-week low is $227.08, putting the stock 157.8% above its annual trough. Recent trading volume was 611K shares, suggesting relatively thin trading activity.
Is PWR Overvalued or Undervalued? — Valuation Analysis
QUANTA SERVICES, INC. (PWR) carries a value factor score of 47/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 81.15x, compared to the Industrials sector average of 28.33x — a premium of 186%. The price-to-book ratio stands at 9.21x, versus the sector average of 2.23x. The price-to-sales ratio is 3.06x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, PWR trades at 53.36x EV/EBITDA, versus 5.70x for the sector.
Overall, PWR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
QUANTA SERVICES, INC. Profitability — ROE, Margins, and Quality Score
QUANTA SERVICES, INC. (PWR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.3%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 4.1% versus the sector average of 3.3%.
On a margin basis, QUANTA SERVICES, INC. reports gross margins of 14.9%, compared to 35.8% for the sector. The operating margin is 5.7% (sector: 6.2%). Net profit margin stands at 3.7%, versus 3.9% for the average Industrials stock. Revenue growth is running at 36.4% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PWR Debt, Balance Sheet, and Financial Health
QUANTA SERVICES, INC. has a debt-to-equity ratio of 176.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $5.63B. Cash and equivalents stand at $610M.
PWR has a beta of 1.11, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for QUANTA SERVICES, INC. is 68/100, reflecting average volatility within the normal range for its sector.
QUANTA SERVICES, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, QUANTA SERVICES, INC. reported revenue of $27.13B and earnings per share (EPS) of $6.91. Net income for the quarter was $1.02B. Gross margin was 14.9%. Operating income came in at $1.56B.
In FY 2025, QUANTA SERVICES, INC. reported revenue of $28.48B and earnings per share (EPS) of $6.91. Net income for the quarter was $1.04B. Gross margin was 15.0%. Revenue grew 20.3% year-over-year compared to FY 2024. Operating income came in at $1.61B.
In Q3 2025, QUANTA SERVICES, INC. reported revenue of $7.63B and earnings per share (EPS) of $2.28. Net income for the quarter was $343M. Gross margin was 15.9%. Revenue grew 17.5% year-over-year compared to Q3 2024. Operating income came in at $517M.
In Q2 2025, QUANTA SERVICES, INC. reported revenue of $6.77B and earnings per share (EPS) of $1.54. Net income for the quarter was $234M. Gross margin was 14.9%. Revenue grew 21.1% year-over-year compared to Q2 2024. Operating income came in at $370M.
Over the past 8 quarters, QUANTA SERVICES, INC. has demonstrated a growth trajectory, with revenue expanding from $5.59B to $27.13B. Investors analyzing PWR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PWR Dividend Yield and Income Analysis
QUANTA SERVICES, INC. (PWR) currently pays a dividend yield of 0.1%. At this yield, a $10,000 investment in PWR stock would generate approximately $$9.00 in annual dividend income.
PWR Momentum and Technical Analysis Profile
QUANTA SERVICES, INC. (PWR) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PWR vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing PWR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PWR vs S&P 500 (SPY) comparison to assess how QUANTA SERVICES, INC. stacks up against the broader market across all factor dimensions.
PWR Next Earnings Date
No upcoming earnings date has been announced for QUANTA SERVICES, INC. (PWR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PWR? — Investment Thesis Summary
QUANTA SERVICES, INC. presents a balanced picture with arguments on both sides. Price momentum is positive at 71/100, suggesting the trend favors buyers. Low volatility (stability score 68/100) reduces downside risk.
In summary, QUANTA SERVICES, INC. (PWR) earns a Hold rating with a composite score of 50.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PWR stock.
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Institutional Research Dossier
QUANTA SERVICES, INC. (PWR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Quanta Services, Inc. (PWR) receives a Hold rating, reflecting a balanced view of its strong growth momentum and concerning valuation metrics. While the company benefits from robust demand in the electric power and renewable energy infrastructure sectors, its high P/E ratio and negative free cash flow raise concerns about its current market price relative to its earnings and cash generation capabilities.
The company's strategic positioning in essential infrastructure services provides a degree of stability, but the premium valuation suggests limited upside potential in the near term. Investors should closely monitor the company's ability to improve profitability and cash flow generation to justify its current valuation.
Business Strategy & Overview
Quanta Services operates as a specialty contractor, providing infrastructure solutions primarily to the electric power, renewable energy, and underground utility sectors. The company's business model is centered around providing design, procurement, construction, upgrade, repair, and maintenance services. This diversified approach allows Quanta to capture revenue across various stages of infrastructure projects, from initial design to ongoing maintenance.
The company's Electric Power Infrastructure Solutions segment focuses on the construction and maintenance of transmission and distribution networks, substations, and smart grid technologies. This segment benefits from the increasing need to upgrade aging infrastructure and expand capacity to meet growing electricity demand. The Renewable Energy Infrastructure Solutions segment caters to the burgeoning renewable energy market, providing engineering, procurement, and construction services for wind, solar, and hydropower facilities. This segment is driven by government incentives and the increasing adoption of renewable energy sources.
The Underground Utility and Infrastructure Solutions segment focuses on the transportation, distribution, and storage of natural gas, oil, and other products. This segment benefits from the need to maintain and expand pipeline infrastructure. Quanta's strategic positioning in these essential infrastructure sectors provides a degree of stability and resilience to economic cycles. The company's broad service offerings and geographic reach allow it to serve a diverse customer base and capture opportunities across different regions and markets.
Quanta's growth strategy involves a combination of organic expansion and strategic acquisitions. The company has a track record of acquiring smaller companies to expand its service offerings, geographic reach, and technical expertise. These acquisitions allow Quanta to enter new markets, enhance its capabilities, and gain access to skilled labor. The company also invests in training and development programs to ensure that its workforce has the skills and expertise needed to meet the evolving needs of its customers.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
36.4%
Sector: 6.4%
+471% VS SCTR
Economic Moat Analysis
Quanta Services possesses a narrow economic moat, primarily derived from switching costs and specialized expertise. The company's services are often critical for maintaining and upgrading essential infrastructure, creating a degree of customer stickiness. Utilities and energy companies are hesitant to switch contractors due to the potential for disruptions and the need for specialized knowledge and experience.
The company's reputation for reliability and safety also contributes to its competitive advantage. Infrastructure projects are often complex and high-risk, and customers are willing to pay a premium for contractors with a proven track record of delivering projects on time and within budget. Quanta's scale and geographic reach provide it with a cost advantage over smaller competitors. The company can leverage its size to negotiate favorable terms with suppliers and spread its overhead costs over a larger revenue base.
However, the company's moat is not particularly wide due to the relatively low barriers to entry in some of its service areas. While specialized expertise is required for certain projects, other services, such as routine maintenance, are more commoditized. The company also faces competition from larger engineering and construction firms that have the resources and capabilities to compete for major infrastructure projects.
Furthermore, the company's reliance on government spending and regulatory approvals creates a degree of uncertainty. Changes in government policies or funding priorities could impact the demand for Quanta's services. The company's moat is also vulnerable to technological disruptions. New technologies, such as drones and robotics, could automate some of the company's services and reduce the need for manual labor. This could lower barriers to entry and increase competition.
Financial Health & Profitability
Quanta Services has demonstrated strong revenue growth in recent years, with revenue increasing from $20.88 billion in FY2023 to $28.48 billion in FY2025. This growth is driven by strong demand in the electric power and renewable energy sectors. However, the company's profitability metrics are less impressive. The company's gross margin of 14.9% is significantly lower than the sector average of 35.8%. This suggests that the company has limited pricing power and faces intense competition.
The company's operating margin of 5.7% is slightly below the sector average of 6.2%. The company's net margin of 3.7% is in line with the sector average. The company's ROE of 11.4% is slightly above the sector average of 9.2%. This suggests that the company is generating a reasonable return on equity, but there is room for improvement.
The company's balance sheet is highly leveraged, with a debt-to-equity ratio of 176.00, significantly higher than the sector average of 70.00. This high level of debt increases the company's financial risk and limits its flexibility to pursue growth opportunities. The company's current ratio of 1.14 indicates that it has sufficient liquidity to meet its short-term obligations.
A significant concern is the company's negative free cash flow of -$2.03 billion. This indicates that the company is not generating enough cash to cover its capital expenditures and other cash outflows. This negative free cash flow is a red flag and suggests that the company may need to raise additional capital in the future. Reviewing the quarterly financial history, while revenue has increased consistently, the gross and operating margins have fluctuated, indicating potential volatility in profitability.
Valuation Assessment
Quanta Services' valuation is a significant concern. The company's P/E ratio of 80.4x is significantly higher than the sector average of 27.7x. This suggests that the stock is significantly overvalued relative to its earnings. The company's EV/EBITDA ratio of 12.9x is also higher than the sector average of 5.7x. This further supports the conclusion that the stock is overvalued.
Given the company's negative free cash flow, it is not possible to calculate a meaningful FCF yield. The high P/E ratio and EV/EBITDA ratio suggest that investors are paying a premium for the company's growth prospects. However, the company's high level of debt and negative free cash flow raise concerns about its ability to sustain its growth rate.
The current valuation appears to be pricing in significant future growth and margin expansion. However, given the company's historical performance and the competitive landscape, it is not clear that the company will be able to achieve these expectations. A more reasonable valuation would be based on a lower P/E ratio and a more conservative growth rate.
The Hold rating reflects the view that the stock is currently fairly valued, given its growth prospects and risks. While the company has strong growth momentum, the high valuation and negative free cash flow limit the upside potential. Investors should wait for a pullback in the stock price or an improvement in the company's financial performance before considering an investment.
Risk & Uncertainty
Quanta Services faces several risks and uncertainties. One of the primary risks is its reliance on government spending and regulatory approvals. Changes in government policies or funding priorities could impact the demand for the company's services. For example, a reduction in government funding for renewable energy projects could negatively impact the company's Renewable Energy Infrastructure Solutions segment.
The company also faces competition from other engineering and construction firms. The infrastructure services market is highly competitive, and Quanta faces competition from both large and small players. Increased competition could lead to lower margins and reduced profitability. The company's high level of debt also poses a risk. The company's debt-to-equity ratio is significantly higher than the sector average, which increases its financial risk and limits its flexibility to pursue growth opportunities.
Another risk is the company's reliance on skilled labor. The infrastructure services industry is facing a shortage of skilled workers, which could lead to higher labor costs and project delays. The company's acquisition strategy also poses a risk. The company has a track record of acquiring smaller companies, but these acquisitions may not always be successful. Integration challenges and cultural differences could lead to lower profitability and reduced synergies.
Finally, the company is exposed to operational risks, such as project delays, cost overruns, and safety incidents. Infrastructure projects are often complex and high-risk, and unforeseen events could lead to significant financial losses. Any major safety incident could damage the company's reputation and lead to regulatory penalties.
Bulls Say / Bears Say
The Bull Case
BULL VIEWQuanta Services is well-positioned to benefit from the increasing demand for infrastructure upgrades and renewable energy projects, driving strong revenue growth.
BULL VIEWThe company's strategic acquisitions and diversified service offerings provide a competitive advantage and allow it to capture opportunities across different markets.
BULL VIEWThe increasing focus on grid modernization and renewable energy integration will create a long-term tailwind for Quanta Services, supporting sustained growth and profitability.
The Bear Case
BEAR VIEWQuanta Services' high valuation and negative free cash flow suggest that the stock is overvalued and vulnerable to a correction.
BEAR VIEWThe company's high level of debt and reliance on government spending create significant financial and regulatory risks.
BEAR VIEWIntense competition and potential for project delays or cost overruns could negatively impact the company's profitability and growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PWR and 4,400+ other equities.
QUANTA SERVICES, INC. exhibits a 462% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.1%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
14.9%
Sector: 35.8%
Operating Margin
Core business profitability
5.7%
Sector: 6.2%
Net Margin
Bottom-line profitability
3.7%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $9 annually in dividends at the current trailing rate.
