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Quanta Services (NYSE:PWR) Earnings Yield %

: 1.97% (As of today)
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The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2024-04-13), the stock price of Quanta Services is $254.69. Quanta Services's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $5.01. Therefore, Quanta Services's earnings yield of today is 1.97%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Quanta Services's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 20.08%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Quanta Services Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

Quanta Services's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=5.010/254.69
=1.97 %

Quanta Services's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.010 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

Earnings Yield=Net Income /Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.


Quanta Services  (NYSE:PWR) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.


Quanta Services Earnings Yield % Related Terms

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Quanta Services (NYSE:PWR) Business Description

Traded in Other Exchanges
Address
277 North Loop West, Houston, TX, USA, 77008
Quanta Services is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline, and energy industries in the United States, Canada, and Australia. Quanta reports its results under three reportable segments: electric power, renewables infrastructure, and underground utility and infrastructure. In 2021, the company acquired Blattner, a provider of comprehensive engineering, procurement, and construction solutions to customers in the renewable energy industry.
Executives
Donald Wayne officer: EVP and General Counsel 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Raul Javier Valentin director ONE LIBERTY PLAZA, 7TH FLOOR, NEW YORK NY 10006
Dorothy Upperman officer: VP Tax 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Bernard Fried director QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008
Worthing F Jackman director QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008
Ducey Gerald A Jr officer: Pres. - Strategic Operations 2727 NORTH LOOP WEST, HOUSTON TX 77008
Austin Earl C. Jr. director, officer: President, CEO and COO QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
James Redgie Probst officer: President - Electric Power 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Derrick A Jensen officer: Chief Financial Officer QUANTA SERVICES, INC., 2800 POST OAK BLVD., SUITE 2600, HOUSTON TX 77056-6175
Robert Scott Rowe director 1333 WEST LOOP SOUTH, SUITE 1700, HOUSTON TX 77027
Vincent D Foster director QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008
Paul Nobel officer: Chief Accounting Officer & VP C/O QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
John Michal Conaway director QUANTA SERVICES, INC., 2800 POST OAK BLVD., SUITE 2600, HOUSTON TX 77056-6175
Holli C. Ladhani director 2800 POST OAK BLVD., SUITE 4500, HOUSTON TX 77056
Nicholas M Grindstaff officer: VP - Finance and Treasurer QUANTA SERVICES, INC., 2800 POST OAK BLVD., SUITE 2600, HOUSTON TX 77056-6175

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