July 11, 2025 a 07:31 am
PWR: Dividend Analysis - Quanta Services, Inc.
Quanta Services, Inc. has shown a consistent track record of obliging to its dividend commitments over recent years. With a modest dividend yield and a reliable payout history, the firm establishes itself as a potentially secure choice for dividend investors. However, with a recent dividend cut, the future stability of the dividend payout remains under scrutiny. The company's sensible financial leverage suggests a strong position to weather diverse economic environments.
📊 Overview
The following table offers a concise summary of Quanta Services, Inc.'s dividend attributes:
| Attribute | Value |
|---|---|
| Sector | Infrastructure |
| Dividend Yield | 0.13% |
| Current Dividend per Share | 0.37 USD |
| Dividend History | 8 years |
| Last Cut or Suspension | 2024 |
🗣️ Dividend History
The dividend history offers insight into a company's commitment to rewarding its shareholders. Despite the recent cut, Quanta Services has maintained a history of dividend payments over the past 8 years, reflecting a substantial dedication to its dividend policy.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.30 |
| 2024 | 0.27 |
| 2023 | 0.33 |
| 2022 | 0.36 |
| 2021 | 0.18 |
📈 Dividend Growth
Examining dividend growth over time offers insight into the potential for income growth from dividend payments. Over the past 5 years, Quanta Services has demonstrated a moderate but dependable growth rate, indicative of a stable dividend policy.
| Time | Growth |
|---|---|
| 3 years | 14.47% |
| 5 years | 9.69% |
The average dividend growth is 9.69% over 5 years. This shows moderate but steady dividend growth.
💡 Payout Ratio
Understanding the payout ratio is crucial for assessing dividend sustainability. Quanta Services exhibits a conservative payout ratio, ensuring the dividend is well-covered by earnings and free cash flows.
| Key Figure | Ratio |
|---|---|
| EPS-based | 5.88% |
| Free cash flow-based | 3.82% |
The low EPS and FCF payout ratios reflect the company's prudent approach to managing its dividend obligations.
💰 Cashflow & Capital Efficiency
An analysis of cash flow sustainability and capital efficiency can provide insight into the company's ability to maintain and grow its dividend.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.18% | 3.64% | 3.43% |
| Earnings Yield | 1.95% | 2.38% | 2.40% |
| CAPEX to Operating Cash Flow | 31.33% | 27.59% | 37.93% |
| Stock-based Compensation to Revenue | 0.62% | 0.61% | 0.62% |
| Free Cash Flow / Operating Cash Flow Ratio | 70.97% | 72.41% | 62.07% |
Quanta Services demonstrates robust cash flow metrics, underpinning its financial flexibility and capacity to weather potential downturns.
📉 Balance Sheet & Leverage Analysis
The balance sheet and leverage analysis provides insight into the company's financial stability, liquidity position, and debt structure.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 61.21% | 71.17% | 73.85% |
| Debt-to-Assets | 23.97% | 27.49% | 29.53% |
| Debt-to-Capital | 37.97% | 41.58% | 42.48% |
| Net Debt to EBITDA | 1.89 | 1.79 | 2.39 |
| Current Ratio | 1.31 | 1.47 | 1.63 |
| Quick Ratio | 1.26 | 1.44 | 1.59 |
| Financial Leverage | 2.55 | 2.59 | 2.50 |
Quanta Services maintains a sensible leverage level, with sufficient liquidity to meet short-term obligations while managing long-term debt prudently.
📈 Fundamental Strength & Profitability
Understanding key profitability metrics and fundamental strengths is crucial for a comprehensive analysis of a company's operational effectiveness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.16% | 11.87% | 9.12% |
| Return on Assets | 4.84% | 4.59% | 3.65% |
| Net Margin | 3.82% | 3.57% | 2.88% |
| EBIT Margin | 5.98% | 5.54% | 4.91% |
| EBITDA Margin | 9.11% | 8.48% | 8.69% |
| Gross Margin | 14.83% | 14.07% | 14.81% |
| R&D to Revenue | 0% | 0% | 0% |
Quanta Services boasts sturdy profitability metrics, supported by efficient asset utilization and a strong equity base.
🖼️ Price Development
✅ Dividend Scoring System
The following scoring system evaluates various aspects of Quanta Services' dividend and financial health:
| Category | Score | |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 3 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 3 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 27/40
⭐ Rating
Quanta Services, Inc. shows a solid dividend profile characterized by sustainable payout ratios and consistent growth history. However, the recent dividend cut may cause concern among some investors. Despite this, the company's underlying fundamentals and financial stability suggest it remains a strong candidate for those seeking moderate income with potential for capital appreciation. It is advisable to keep monitoring the company's financial performance closely.