Quanta Services, Inc. (PWR)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Quanta is a large infrastructure contractor, with 69,500 employees serving electric and gas utilities, power generation, communications, pipeline, and energy industries. The business has been growing fast. In fiscal Q2 2026, the quarter ended 2026-06-30, Quanta reported revenue of $9.6B, net income of $451.4M, and diluted EPS of $2.96. That compares with revenue of $6.8B, net income of $229.3M, and diluted EPS of $1.52 in fiscal Q2 2025, the quarter ended 2025-06-30. For FY2025, ended 2025-12-31, revenue was $28.5B, net income $1.0B, and diluted EPS $6.80, up from FY2024 revenue of $23.7B, net income $904.8M, and diluted EPS $6.03. So the trajectory is good. FairStock calls it a STALWART, with 18.2% profit growth and 20.5% revenue growth over five years. Financial health looks acceptable: ROE 15.34%, D/E 0.68, Piotroski 7/9, Altman Z 4.18. But ROCE of 5.23% is modest, and FCF yield is only 2.3%. Valuation is the problem. At the 2026-10-13 close of $688.88, the P/E is 79.00, P/B 10.74, and EV/EBITDA 35.60—all FairStock calculations. The Graham Number is $112.18, implying a -514.08% margin of safety. Even with a PEG of 0.82, I see a fine business priced as though perfect execution is certain. I prefer a margin of safety; here the numbers show none.

In plain English: Quanta Services builds and maintains electric power, pipeline, and communications infrastructure. The business looks strong: sales and profits have grown quickly, and its balance sheet seems reasonably healthy. But the stock looks expensive compared with the company's earnings, cash flow, and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer