Stock analysis · Bull Rankings model

PWR analysis

Quanta Services, Inc.Engineering & Construction. Scored on the same transparent model behind the daily rankings.

Infrastructure & Reshoring
PWR
Quanta Services, Inc. · Engineering & Construction
FCF$2.4bB
Rev+26.3%A-
D/E0.68B
P/E80.5xD
PEG2.07C
49.8Score
$701.23$105.4B
1Y Target$762.08Analyst consensus · 27 analysts
5Y Target$1,116Compound horizon
10Y Target$1,655Long-dated conviction
FCF$2.4bTTM
B
FCF $2.4b — solid, comfortably covers operations and capital return
Rev+26.3%TTM YoY
A-
Revenue +26.3% — strong growth, well above S&P median (~7%)
D/E0.68
B
D/E 0.68 — near the Industrials debt median (≈60th pctile)
P/E80.5x
D
P/E 80.5 — most expensive decile in Industrials (≈95th pctile)
PEG2.07
C
PEG 2.07 — expensive relative to growth rate

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 49.8
Quality0.61
Growth1.00
Value0.20
Entry · Margin of safety
52-week rangeNear 52-week high
11% off the 12-month high
vs DCF fair value200% aboveest. fair value ~$234
What the price assumes: free cash flow compounding at ~36% a year for the next decade — vs the ~10% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability18% · C+gross profit ÷ total assets (Novy-Marx)
ROIC13.3% · B+return on invested capital — not score-weighted
Why now
Engineering & Construction · market cap $105.4b. 11% off the 52-week high of $788.75. Revenue growing +26% — in hypergrowth territory. 27 sell-side analysts rate this a Buy with a mean 1-yr target of $762.08 (implying +9% upside).
Moat
ROE 14% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 178% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $105.4b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 80.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Net margin 4.1% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $762.08 (27-analyst consensus) — fundamentals + valuation re-rating. 5 yr $1,116 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $1,655 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

PWR vs the Top Picks average

PillarPWRBook avgDiff
Quality0.610.83-0.22
Growth1.000.91+0.09
Value0.200.75-0.54

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
0.0 over 34 daily scores
From 49.8 (Jun 22) → 49.8 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
2
Position size
$1,402
2.8% of portfolio
Stop price
$525.92
25% below $701.23
$ at risk if stopped
$350.62
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Quanta Services, Inc. (PWR): score, valuation & FAQ

Quanta Services, Inc. (PWR) is a Engineering & Construction company that scores 49.8 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A-), while P/E (D) rate weaker. On valuation, PWR sits about 200% above our discounted-cash-flow fair value — the current price implies roughly 36% annual free-cash-flow growth over the next decade.

Is PWR a good stock to buy?

Bull Rankings scores PWR 49.8 out of 100 on its quality-growth model, which is a below-average reading. That is driven by Rev (A-). A score is a quantitative screen of Quanta Services, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does PWR score 49.8 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PWR earns its highest marks on Rev (A-), and is held back by P/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is PWR overvalued or undervalued?

Based on $701.23, PWR sits about 200% above our discounted-cash-flow fair value — the current price implies roughly 36% annual free-cash-flow growth over the next decade. It trades at a 80.5x× P/E (graded D). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in PWR?

Trailing P/E 80.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Net margin 4.1% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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