MMarketMath

PWR

Fast growerQuality: High (71/100)

Quanta Services · Industrials · Construction & Engineering

$616.78

52w 363.01 – 788.75

20y monthly, adjusted

Mkt cap

$92.7B

P/E

96.8

P/FCF

61.4

FCF yield

1.6%

ROE

11.5%

Shldr yield

0.2%

div 0.1% + bb 0.1%

What today's price assumes

At $92.7B, the market is pricing in 23.1% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 27.8% per year — expectations are roughly in line with history.

Simple DCF per-share range: $164 · $369 · $531 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 17.1× across 10 years, PWR would trade near $254/share (25th–75th percentile: $213–$320); it trades at 41.6× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+18.6%

Rev 5y

+20.5%

Rev 10y

+15.7%

EPS 5y

+17.2%

EPS 10y

+20.6%

FCF 5y

+13.6%

FCF 10y

+27.8%

Fundamentals

Fiscal 2016–2025, from SEC filings

Revenue

2016: $7.7B
2017: $9.5B
2018: $11.2B
2019: $12.1B
2020: $11.2B
2021: $13.0B
2022: $17.1B
2023: $20.9B
2024: $23.7B
2025: $28.5B
$0$10.0B$20.0B
16
18
20
22
24

Net income

2016: $200.1M
2017: $315.0M
2018: $293.3M
2019: $402.0M
2020: $445.6M
2021: $486.0M
2022: $491.2M
2023: $744.7M
2024: $904.8M
2025: $1.0B
$0$500.0M$1.0B
16
18
20
22
24

Free cash flow

2016: $178.2M
2017: $127.2M
2018: $65.2M
2019: $264.8M
2020: $855.9M
2021: $196.5M
2022: $702.7M
2023: $1.1B
2024: $1.5B
2025: $1.6B
$0$500.0M$1.0B$1.5B
16
18
20
22
24

Diluted shares (lower is better)

2016: 157.3M
2017: 157.2M
2018: 154.2M
2019: 147.5M
2020: 145.2M
2021: 145.4M
2022: 148.0M
2023: 148.8M
2024: 150.1M
2025: 151.3M
050.0M100.0M150.0M
16
18
20
22
24

Margins

0%5%10%15%1618202224
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2016: $0
2017: $50.0M
2018: $443.2M
2019: $43.3M
2020: $276.1M
2021: $100.7M
2022: $168.8M
2023: $48.1M
2024: $54.2M
2025: $195.0M
$0$200.0M$400.0M
16
18
20
22
24

Cash vs long-term debt

$0$2.0B$4.0B1618202224
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $5.0B
Q3'23: $5.6B
Q4'23: $5.8B
Q1'24: $5.0B
Q2'24: $5.6B
Q3'24: $6.5B
Q4'24: $6.6B
Q1'25: $6.2B
Q2'25: $6.8B
Q3'25: $7.6B
Q4'25: $7.8B
Q1'26: $7.9B
Q2'26: $9.6B
$0$2.5B$5.0B$7.5B
23
24
24
25
26

Net income by quarter

Q2'23: $165.9M
Q3'23: $272.8M
Q4'23: $210.9M
Q1'24: $118.4M
Q2'24: $188.2M
Q3'24: $293.2M
Q4'24: $305.1M
Q1'25: $144.3M
Q2'25: $229.3M
Q3'25: $339.4M
Q4'25: $315.4M
Q1'26: $220.6M
Q2'26: $451.4M
$0$200.0M$400.0M
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$9.6B+41.1%$451.4M+96.9%2.96$1.1B
Q1'26$7.9B+26.3%$220.6M+52.9%1.45$391.7M
Q4'25 *$7.8B+19.7%$315.4M+3.4%2.08$1.1B
Q3'25$7.6B+17.5%$339.4M+15.8%2.24$563.5M
Q2'25$6.8B+21.1%$229.3M+21.8%1.52$295.7M
Q1'25$6.2B+23.9%$144.3M+21.9%0.96$243.2M
Q4'24 *$6.6B+13.3%$305.1M+44.7%2.03$712.0M
Q3'24$6.5B+15.5%$293.2M+7.5%1.95$739.9M
Q2'24$5.6B+10.8%$188.2M+13.4%1.26$391.3M
Q1'24$5.0B+13.6%$118.4M+24.5%0.79$238.0M
Q4'23 *$5.8B+31.0%$210.9M+29.7%1.41$1.0B
Q3'23$5.6B+26.0%$272.8M+74.9%1.83$406.6M
Q2'23$5.0B+19.3%$165.9M+88.5%1.12$127.4M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+18.6%+20.5%
Operating cash flow+25.4%+14.8%
Free cash flow+32.1%+13.6%
EPS (diluted)+27.0%+17.2%
Equity+18.4%+15.5%
LT debt+12.3%+34.8%
Diluted shares+0.7%+0.8%
Stock price+43.4%+43.5%+37.7%+26.2%

$100, 3 years ago

$295vs $176 in SPY

43.4% vs 20.7%/yr

$100, 5 years ago

$609vs $181 in SPY

43.5% vs 12.6%/yr

$100, 10 years ago

$2,445vs $412 in SPY

37.7% vs 15.2%/yr

$100, 15 years ago

$3,278vs $813 in SPY

26.2% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$18.04

$61.6B created / $3.4B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

15.7%

OCF ÷ (equity + debt)

OCF / EV yield

2.1%

MC vs 10× OCF

4.47

≤1 = priced under 10× OCF

Debt / FCF

3.2y

SBC / FCF

11.2%

Owner earnings

$1.4B

OCF − capex − SBC

OE yield

1.4%

Share count 5y

−0.4%

per year; negative = buybacks

Capital intensity

net PP&E ÷ revenue

Sales efficiency

$0.03

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 110.5% of operating cash flow at an incremental return of 13.3% — an organically fundable growth rate of about 14.7% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

17 of 27 checks pass · 63%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/7

  • Revenue growth

    20.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    17.2% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    13.6% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    14.8% vs 20.5% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

4/7

  • Net margin

    3.6% · ≥ 8%

    fail
  • Operating margin

    5.7% · ≥ 10%

    fail
  • Gross margin stable or rising

    15.0% vs 14.8% · no drop > 2 pts over 3y

    pass
  • Return on equity

    11.5% · ≥ 12%

    fail
  • Cash ROIC

    15.7% · ≥ 12%

    pass
  • FCF margin

    5.7% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $2.2B vs NI $1.0B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

2/5

  • Debt payable from cash flow

    3.2y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    8% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.59 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $8.9B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    16% · interest ≤ 15% of operating income

    fail

Capital Allocation

4/4

  • Share count flat or shrinking

    -0.4% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    11% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    12% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    8 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

1/4

  • FCF yield

    1.6% · ≥ 3%

    fail
  • Earnings multiple

    96.8 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    23.1% vs 27.8% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    0.2% · dividends + buybacks ≥ 2% of market cap

    fail

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202528,4804,2751,6121,0286.802,2306091,621601351824405,2318,938151
202423,6733,5111,3469056.032,0816041,4775401517424,1007,318150
202320,8822,9371,1287455.001,5764351,1414801271,2903,6646,272149
202217,0742,5298724913.321,130428703411281064293,6925,383148
202112,9801,9536644863.345823861973467882293,7245,112145
202011,2031,6616114463.071,11626085629247921851,1744,344145
201912,1121,6005554022.735272622652320521651,2924,050148
201811,1711,4805402931.9035929465044352791,0413,604154
20179,4661,2423793152.00372245127050461386713,792157
20167,6511,0143212001.263912131780431123543,339157

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.