Rankings Grid & electrical equipment Quanta Services
Quanta Services
77
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- Multiples vs own history−12
- Absolute price level−6
- Margin−3
Strengths
- Raised guidance+3
- Order book+2
How the score is built
From 100 to 77, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 621.18 USD
- Median analyst target
- 800.00 USD
- Upside to median
- +28.8%
- Analysts
- 30
- Target range
- 410.00 – 960.00 USD
- 52-week change
- +38%
- P/E (trailing)
- 56.2
- Forward P/E
- 29.8
- PEG
- 1.23
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−7 of −30
- −3MarginOperating margin 6.1%, net margin 4.0% and gross margin 15.5% (TTM) – a low-margin contracting business, only slightly improved from a 4.9% operating margin in 2021.
- −2ROICROIC of 10.0% against a WACC of 10.8% and ROCE of 11.5%; the company is not clearly earning above its cost of capital despite record years.
- −2Capital allocationGrowth is partly bought: four acquisitions since April 2026 for a total of about USD 1.24bn (cash and shares), after Dynamic Systems (USD 1.35bn) and Cupertino Electric. Net debt has risen from USD 3.2bn (2023) to USD 6.1bn, and the share count grows about 0.8% a year.
Price
Today's multiples against the company's own history and its peers. · 2 findings−18 of −35
- −12Multiples vs own historyForward P/E 38.3 versus 19.2–35.3 in 2021–25, P/S 3.2 versus 1.2–2.2, EV/EBITDA 36.9 versus 20.7–27.4 and P/B 11.0 versus 5.0–7.0 – all above the top of the range. The share price is up 59% in a year.
- −6Absolute price levelA share price of about USD 706 gives a P/E of 42 on 2026 EPS (16.74) and 36 on 2027 EPS (19.77); FCF yield 2.2% and earnings yield 1.3% for a contractor with a 4% net margin.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−7 of −35
- −3Insider tradingCEO Duke Austin sold 130,000 shares for approx. 100m USD on 5/5-2026 (19% of his holding), and the CFO sold 4,000 shares (33%); insiders sold 123m USD over 90 days. No insider purchases found.
- −2DebtNet debt of USD 6.1bn and only 0.5bn in cash; net debt/EBITDA 2.0 (up from 1.8 in 2024), financed by acquisitions.
- −2AI expectations priced inAccording to the CEO, data centres will be only about 10% of the business going forward, but the stock trades as an AI infrastructure name and rose 13.5% on the Q2 figures; a downgrade of AI expectations could hit the multiple harder than earnings.
Plus
Only documented strengths. · 2 findings+5 of +15
- +3Raised guidance2026 guidance raised across all key figures after Q2: revenue 39.3-39.7bn USD (12.8% above consensus) and adjusted EPS 16.45-16.95 USD; Q2 revenue 9.56bn USD.
- +2Order bookRecord order book of USD 53.4bn (+49% in a year, about 1.4 years of revenue); management says growth was predominantly organic and that data center projects are only counted when they are ready to start.
Caveats
What the score does not capture, or where the data is weak.
Industry set to 'Power grid & electrical equipment' (grid contractor; 'Construction & materials' was the alternative). Trailing GAAP P/E (81) is inflated by amortisation of acquired intangibles, so forward P/E is used in T2. Revenue growth in 2026 (+39%) includes acquisitions; the organic share has not been calculated. Policy risk for the Renewable segment (phase-out of US solar/wind tax credits), safety/workplace accidents and fixed-price risk on large projects have not been examined (0 points). Insider selling from aggregators, not checked directly in Form 4. Q3 is due 29 Oct.
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