GRANITE CONSTRUCTION INC (NYSE:GVA) – An Undervalued Stock Worth Considering

GRANITE CONSTRUCTION INC (NYSE:GVA) was identified as a decent value stock by our screening process. The company shows a combination of reasonable valuation, stable financial health, and steady growth potential, making it an interesting candidate for value investors.

Valuation Highlights

• Attractive valuation metrics: GVA trades at a Price/Forward Earnings ratio of 14.43, cheaper than 89.8% of its industry peers.
• Enterprise Value/EBITDA suggests the stock is undervalued relative to nearly 80% of competitors.
• PEG Ratio indicates the stock is reasonably priced when accounting for expected earnings growth.

Financial Health

• Solid balance sheet: GVA maintains a healthy Altman-Z score of 3.4, signaling low bankruptcy risk.
• Manageable debt levels: The Debt/Equity ratio of 0.74 is in line with industry standards.
• Strong liquidity: Current and Quick ratios (1.57 and 1.44, respectively) suggest the company can meet short-term obligations comfortably.

Profitability & Growth

• Improving margins: Both Gross Margin and Profit Margin have shown recent improvement.
• Earnings growth: EPS grew by 27.93% over the past year, with a projected 24.45% annual growth rate moving forward.
• Revenue expansion: Sales increased by 11.42% year-over-year, with steady growth expected to continue.

While GVA’s dividend yield of 0.55% is modest, the company has maintained payouts for over a decade, demonstrating commitment to shareholders.

Our Decent Value Stocks screener lists more stocks with similar characteristics and is updated daily.
For a deeper analysis, review the full fundamental report on GVA.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own research before making investment decisions.