PWR
Quanta Services Inc.
Industrial/Transportation, TMT, Energy
01/17/2014
Presented
| Date | 01/15/2014 |
| Price | $31.57 |
| Market Cap | $6.81B |
| Ent Value | $6.52B |
| P/E Ratio | 21.23x |
| Book Value | $20.48 |
| Div Yield | N/A |
| Shares O/S | 215.86M |
| Ave Daily Vol | 1,610,000 |
| Short Int | 2.14% |
Current
| Price | $305.54 |
| Market Cap | $45.02B |
| Quanta Services, Inc. provides specialty contracting services and infrastructure solutions in North America and internationally. It operates in three segments: Electric Power Infrastructure Services; Natural Gas and Pipeline Infrastructure Services; and Fiber Optic Licensing and Other. The Electric Power Infrastructure Services segment designs, installs, upgrades, repairs, and maintains electric power transmission and distribution networks, and substation facilities; maintains renewable energy generation facilities; provides emergency restoration services; and network solutions to the electric power industrial customers. This segment also designs, installs, maintains, and repairs commercial and industrial wiring; and traffic networks, and cable and control systems for light rail lines. The Natural Gas and Pipeline Infrastructure Services segment designs, installs, repairs, and maintains pipeline transmission and distribution systems, gathering systems, and compressor and pump stations, as well as offers 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 maintains airport fueling systems, and water and sewer infrastructure. This segment offers its services to customers involved in the transportation of natural gas, oil, and other pipeline products. The Fiber Optic Licensing and Other segment designs, procures, constructs, maintains, and owns fiber optic telecommunications infrastructure, as well as licenses the right to use these point-to-point fiber optic telecommunications facilities to its customers. This segment offers its services to enterprise, education, carrier, financial services, and healthcare customers, as well as other entities. The company was founded in 1997 and is headquartered in Houston, Texas. |
The presenter is once again long shares of Quanta Services (PWR), and believes the specialty contractor is well positioned to benefit from stable investment in electric power transmission and distribution networks, as well as growth in pipeline distribution systems. He was long PWR in 2011, but when the Keystone and other pipeline projects were delayed they chose to exit the position. Today, at ~$31 and with the previously delayed pipeline projects coming through he sees a favorable risk/ reward. The stock is trading at just 15x and 13.5x his 2014 and 2015 EPS estimates (both of which are ahead of the consensus), respectively.
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