Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 27 Sept 2026
PWR· Industrials
Quanta Services
Quanta Services' valuation at a P/E of 98 lacks margin of safety despite solid industry growth.
Buffett fit
Weak fit
Owner
7
Durability
99
Management
85
Price
0
Score updated 29 Oct 2026 · analysis from 27 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Quanta Services entirely, our focus would be on managing the capital-intensive nature of the business and ensuring consistent cash flow.
The full reasoning comes with a free account.
Quanta Services shows strong durability with a 5-year EPS growth of 18.79% and profitability in each of the past five years.
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Management has maintained a low debt/equity ratio of 0.12 and a modest share count CAGR of 1.87%.
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The current valuation metrics, such as a of 98 and EV/ of 67.4, offer no .
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 21.57% over 5 years indicates strong top-line growth.
- 2EPS CAGR of 18.79% suggests robust earnings growth.
- 3Low net debt/EBITDA ratio of 0.31 reflects prudent financial management.
- 4Interest coverage ratio of 6.2 indicates sufficient ability to cover interest expenses.
Concerns
6- 1 ratio of 98 suggests excessive market expectations.
- 2 of 7.65% is below the sector's top-quintile cutoff of 13.6%.
- 3 of 5.76% is significantly below the sector's top-quintile cutoff of 17.8%.
- 4 of 13.59% is far below the sector top-quintile of 43.4%.
Price history
$607+400.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Quanta Services provides specialty contracting services in electric power and renewable energy infrastructure. The company operates across segments such as electric power transmission and distribution, renewable energy infrastructure, and underground utility solutions. It generates $28.35 billion in revenue with a net income of $1.03 billion. The of 5.76% suggests moderate profitability in a capital-intensive industry.
How this analysis has moved
The call has held across 5 reviews.
Oct 4, 2026 → Oct 28, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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