Business Analysis of Quanta Services

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Quanta Services

QUANTA SERVICES

Business Overview

Quanta Services, Inc. provides specialty contracting services to the electric power, and oil and gas industries in the United States, Canada, Australia, and internationally. The company's Electric Power Infrastructure Services segment provides network solutions comprising design, installation, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure, and substation facilities, as well as other engineering and technical services. It also provides emergency restoration services, including the repair of infrastructure. In addition, this segment designs, installs, and maintains renewable energy generation facilities comprising solar, wind, and various types of natural gas generation facilities, as well as related switchyards and transmission infrastructure; constructs electric power generation facilities; and designs, installs, maintains, and repairs commercial and industrial wiring. Further, it installs traffic networks; cable and control systems for light rail lines; and ancillary telecommunication infrastructure services. Its Oil and Gas Infrastructure Services segment provides network solutions to customers involved in the development and transportation of natural gas, oil, and other pipeline products. Its services include the design, installation, repair, and maintenance of pipeline transmission and distribution systems, gathering systems, production systems, storage systems, and compressor and pump stations, as well as related trenching, directional boring, and automatic welding services. This segment also provides pipeline protection, integrity testing, rehabilitation and replacement, and fabrication of pipeline support systems and related structures and facilities; and infrastructure services for the offshore and inland water energy markets. In addition, it designs, installs, and maintains fueling systems, as well as water and sewer infrastructure. The company was founded in 1997 and is headquartered in Houston, Texas.

Quanta Services

Quanta Services


R&P Rank: 359
Sector: Construction and Building Products
Industry:Heavy Construction
H.Q Location:Texas
Website: www.quantaservices.com
Company Address:
2800 POST OAK BLVD, SUITE 2600, HOUSTON TX 77056-6175
Ph:713-350-6000

Business Analysis of Quanta Services

The Construction and Building Products Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Quanta Services compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Quanta Services to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Quanta Services with an interactive chart.

  1. Revenue Growth: Quanta Services reported a revenue growth of 1.0% year-on-year during 2016. Heavy Construction Industry grew at -5.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Quanta Services spent 86.8% of its total revenues on COGS. Heavy Construction industry average (COGS share of revenue) in the same period was 81.6%
  3. R&D share of Revenues: Quanta Services R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Quanta Services spent 8.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Heavy Construction industry average SG&A spending in the same period was 9.5%
  5. Inventory share of Revenues: As a percentage of revenue, Quanta Services spent 1.2% of its total revenues on Inventories. Heavy Construction industry average Inventory spending in the same period was 8.5%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Quanta Services invested 12.1% of its total revenues on Accounts Payable (A/P) Heavy Construction industry average Accounts Payable investment in the same period was 12.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Quanta Services invested 25.8% of its total revenues on Accounts Receivable (A/R). Heavy Construction industry average Accounts Receivable investment in the same period was 43.5%
  8. PP&E share of Revenues: As a percentage of revenue, Quanta Services invested 15.3% of its total revenues on Property, Plants, and Equipments (PP&E). Heavy Construction industry average PPE investment in the same period was 19.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Quanta Services invested 23.4% of its total revenues on Intangibles. Heavy Construction industry average Intangibles investment in the same period was 22.1%
  10. Net Margins: Quanta Services Net Margins in the year 2016 were 2.6%. Heavy Construction industry average Net Margins in the same period were 2.1%

Sector and Industry Association of Quanta Services

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Quanta Services is associated with Industrials Sector Group, Construction and Building Products Sector, and Heavy Construction Industry.

Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:

  • Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
  • Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.

Industry Ranking of Quanta Services

With $7.7 billion revenues, Quanta Services ranked number 8 of all the companies in the US Heavy Construction industry. There were a total of 40 public companies in the US Heavy Construction industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Heavy Construction industry by revenues during 2016 were:

  1. Caterpillar ($38.5 billion)
  2. Deere ($26.6 billion)
  3. Fluor Corporation ($19 billion)
  4. AECOM ($17.4 billion)
  5. Ingersoll-Rand ($13.5 billion)
  6. Jacobs Engineering Group ($11 billion)
  7. Chicago Bridge & Iron ($10.7 billion)
  8. Quanta Services ($7.7 billion)
  9. EMCOR Group ($7.6 billion)
  10. MasTec ($5.1 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Quanta Servicesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of quanta-services

Ingersoll-Rand (IR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ingersoll-Rand Plc with $14 billion revenues in the year 2016 was the number 5 Heavy Construction company. Read this report to know the top competitors of Ingersoll-Rand and identify growth and cost optimization opportunities of Ingersoll-Rand

Jacobs Engineering Group (JEC) Business Analysis – Analyze Historical Performance, Strategic...

Jacobs Engineering Group Inc with $11 billion revenues in the year 2016 was the number 6 Heavy Construction company. Read this report to know the top competitors of Jacobs Engineering Group and identify growth and cost optimization opportunities of Jacobs Engineering Group

Chicago Bridge & Iron (CBI) Business Analysis – Analyze Historical Performance,...

Chicago Bridge & Iron Co N V with $11 billion revenues in the year 2016 was the number 7 Heavy Construction company. Read this report to know the top competitors of Chicago Bridge & Iron and identify growth and cost optimization opportunities of Chicago Bridge & Iron

EMCOR Group (EME) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

EMCOR Group Inc with $8 billion revenues in the year 2016 was the number 9 Heavy Construction company. Read this report to know the top competitors of EMCOR Group and identify growth and cost optimization opportunities of EMCOR Group

MasTec (MTZ) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

MasTec Inc with $5 billion revenues in the year 2016 was the number 10 Heavy Construction company. Read this report to know the top competitors of MasTec and identify growth and cost optimization opportunities of MasTec

Tutor Perini (TPC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tutor Perini Corp with $5 billion revenues in the year 2016 was the number 11 Heavy Construction company. Read this report to know the top competitors of Tutor Perini and identify growth and cost optimization opportunities of Tutor Perini

Revenues Analysis

Quanta Services (PWR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Quanta Services Inc (PWR) from 2012 to 2016. Quanta Services generated a total of $7.7 billion revenues during 2016. Quanta Services reported a revenue growth of 1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Quanta Services (PWR) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Quanta Services Inc (PWR) from 2002 to 2016. Quanta Services generated a total of $7.7 billion revenues during 2016. Quanta Services reported a revenue growth of 1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Quanta Services (PWR) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Quanta Services Inc (PWR) revenue growth with Heavy Construction industry growth during the last five years from 2012 to 2016. Quanta Services reported a revenue growth of 1% year-over-year during 2016. The Heavy Construction industry growth was -5.7% year-over-year during 2016. Quanta Services growth was faster than the industry during 2016.

Profit Analysis