Quanta Services PWR
Quanta Services is a US infrastructure contractor for electric, energy, and telecommunications, building and maintaining transmission networks, pipelines, and renewable energy projects. Quanta Services shows exceptional growth (revenue +41%, earnings +94.7%) and strong momentum (8.74), but its valuation is extremely demanding (P/E 74x, EV/EBITDA 34x) and the rise in 10-year yields pressures the value of its future cash flows, explaining its low valuation score (2.21).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Quanta Services is a US infrastructure contractor for electric, energy, and telecommunications, building and maintaining transmission networks, pipelines, and renewable energy projects. Quanta Services shows exceptional growth (revenue +41%, earnings +94.7%) and strong momentum (8.74), but its valuation is extremely demanding (P/E 74x, EV/EBITDA 34x) and the rise in 10-year yields pressures the value of its future cash flows, explaining its low valuation score (2.21).
Score by category
| Category | Score |
|---|---|
| Financial health | 5.8 |
| Quality / Moat | 5.6 |
| Valuation | 1.7 |
| Growth | 7.5 |
| Dividend | 2.1 |
| Momentum | 8.7 |
| Risk & Context | 4.8 |
OVERALL SCORE: 4.8/10
Context and risks
The rise in 10-year Treasury yields (5.17%) affects Quanta as a long-duration company: its P/E of 74x and EV/EBITDA of 34x reflect distant future cash flows discounted at a higher rate. Additionally, its electrical and renewable infrastructure business is capital-intensive and sensitive to financing costs, though its Net Debt/EBITDA of 2.0x moderates the impact.
News considered in the analysis
- Quanta Services (PWR) Stock Looks Pricey Against Its Cash Flow Outlook — La nota de Simply Wall St. refleja una preocupación sobre la valoración (PER 74x) que ya es visible en las métricas cuantitativas; no aporta información nueva sobre el negocio.
- Quanta Services Won a Bernstein Upgrade After a 12% Slide. Here’s Where the Stock Could Go — Un upgrade de Bernstein tras una caída del 12% sugiere que el mercado ya ha descontado parte del riesgo, pero la mejora de la recomendación es una señal positiva moderada.
- Is Quanta Services (PWR) Outperforming Other Construction Stocks This Year? — Artículo de Zacks comparativo sin información sustancial nueva; es ruido.
- 2 Profitable Stocks Worth Your Attention and 1 We Avoid — Listículo genérico sin información específica accionable.
- 2 S&P 500 Stocks Worth Your Attention and 1 We Turn Down — Listículo genérico sin información específica accionable.
Verdict: Hold; growth and momentum are solid, but the valuation offers no margin of safety and the high-rate environment is a headwind.
Main risk: The extreme valuation (P/E 74x) leaves little room for error; a slowdown in electrical or renewable infrastructure capex, or a further rise in rates, could trigger a significant correction.
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