PWR
Quanta Services, Inc.$567.51
Sell
Target $361.33
Report: Mar 07, 2026Industrials • Engineering & Construction • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$567.51-36.3%
Rec: SellConviction: High
Entry Target
N/A
N/A
Fair Value
$361.33
(36% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$583.73
52 Week Low$227.08
Avg. 3 Month Volume1.13M
Efficiency
LTM Gross Margin15.0%
LTM EBITDA Margin8.9%
LTM EBIT Margin5.7%
LTM Operating Margin5.6%
LTM ROA4.7%
LTM ROE12.6%
LTM ROIC14.6%
LTM ROCE11.4%
Capital Structure
Market Cap (MM)$82.1B
Enterprise Value (MM)$88.1B
Shares Outstanding149.39M
Total Debt (MM)$6.42B
Cash & Equivalents (MM)$439.51M
LTM Net Debt (MM)$5.98B
LTM Net Debt/EBITDA2.3x
Growth
TTM Rev. Growth20.3%
Last 3-Yr Rev. CAGR18.6%
Last 3-Yr EBITDA CAGR20.6%
Last 3-Yr EPS CAGR26.4%
Valuation
Street Target Price$587.08
LTM EV/Revenue3.1x
LTM EV/Gross Profit20.6x
LTM EV/EBIT53.8x
LTM EV/EBITDA34.6x
LTM P/E79.9x
LTM EV/FCF54.4x
LTM P/FCF50.7x
LTM P/TB5.6x
LTM P/B9.2x
Dividend Yield0.1%
Payout Ratio5.9%
Executive SummarySituation: Current price is $567.51 versus fair value $361.33 (-36.3% expected return), and valuation confidence is stable. Debate: Bull case depends on Multiple De-rating Following Earnings Miss Quanta has missed annual EPS estimates for five consecutive years. Bear case centers on Skilled Labor Shortage The primary threat is the inability to staff the $44B backlog. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
Quanta is the 'picks and shovels' play for the AI revolution, with data centers now representing 10% of the business and the fastest-growing segment of the $44B backlog. The $500M-$700M investment in vertical supply chain will expand margins by capturing the manufacturing spread on high-voltage transformers.
Bear Case
The company is fundamentally a low-margin contractor trading at a software-like 82x P/E. Incremental ROIC of 5.2% is less than half the WACC of 10.2%, meaning growth is currently destroying shareholder value on a per-share basis.
Key Catalysts
Near-Term (0-6 months)Impact: High
Multiple De-rating Following Earnings Miss Quanta has missed annual EPS estimates for five consecutive years. As the 'AI-Infrastructure' hyp...
Mid-Term (6-18 months)Impact: Critical
Integration Failure of 2025 Acquisitions Quanta added 11,100 employees through eight acquisitions in 2025. Any friction in integrating these...
Long-Term (18+ months)Impact: Moderate
Quanta is relevant for analysis now because it is trading at an all-time high multiple while insiders are liquidating holdings and the compa...
Primary Risks
Concern: High
Skilled Labor Shortage The primary threat is the inability to staff the $44B backlog. Quanta requires 6,000 new employees annually; a failur...
Concern: High
Multiple Compression Risk The stock trades at a 215% premium to the peer median P/E. A shift in macro sentiment away from 'AI-Infrastructure...
Concern: Medium
The stewardship verdict is 'Weak' for a Mature Compounder. While the board has strong utility experience (e.g., Warner Baxter, ex-Ameren CEO...
Recent Activity
2026-02-19SEC Filing (8-K)
+6.68%Quanta Services reports record Q4 and full-year 2025 results with strong backlog.
2025-11-13SEC Filing (SC 13G/A)
-5.00%Capital World Investors reports 4.6% beneficial ownership of Quanta Services, Inc. common stock.
2025-10-08Analyst Target
+5.21%Firm: Truist Financial Price Target: $521.00 Price When Posted: $421.51 Implied Upside: +23.6%
2025-05-01SEC Filing (8-K)
+9.99%Quanta Services reports record Q1 2025 results and raises full-year guidance.
2024-09-11Press Release
+5.22%Hybar Welcomes Quanta Services As A New Equity Partner
Valuation Table
9.8/10Decision Grade
Scenario Range
$249
Bear
$44
Base
$503
Bull
$568