GRANITE CONSTRUCTION INC (NYSE:GVA): An Affordable Growth Stock for Infrastructure Investors

Investors looking for growth chances at fair prices often use screening methods that find companies showing good expansion potential without high prices. The Affordable Growth method looks for stocks with good growth features, steady earnings, and sound financial conditions while keeping appealing price measures. This system works to mix the search for expansion with careful risk control, steering clear of expensive growth stories that could underperform in market declines.

GRANITE CONSTRUCTION INC (NYSE:GVA) functions as a holding company providing infrastructure answers and materials throughout the United States. Based in Watsonville, California, the company has about 2,300 workers in its construction and materials divisions, concentrating on road repair, bridge building, rail lines, and many difficult infrastructure jobs.

Growth Outlook

Granite Construction shows good growth features that match well with affordable growth standards. The company's past results and future estimates point to continued expansion speed, which is important for growth investors looking for firms with shown and expected upward paths.

Main growth measures contain:

• Earnings Per Share growth of 59.63% over the last year
• Average yearly EPS growth of 32.75% over recent years
• Expected future EPS growth of 21.70% each year
• Revenue growth estimate of 9.43% for coming years

The mix of strong past performance and good forward estimates indicates the company keeps growth speed without depending only on future estimates, giving a more dependable growth picture for investors.

Price Assessment

The company's price measures show an appealing picture compared to both industry friends and wider market guides. This price discipline is needed for affordable growth plans, as it helps find companies where growth potential is not completely shown in current prices.

Notable price features:

• Price/Earnings ratio of 20.51 looks good next to industry average of 73.22
• Forward P/E ratio of 16.35 sits under industry average of 30.65
• Enterprise Value to EBITDA ratio places lower than 81% of industry friends
• Price/Free Cash Flow ratio puts the company more affordably than 79% of rivals

These measures show that despite good growth outlook, the market has not given high multiples to Granite Construction, making possible chance for price-aware growth investors.

Financial Condition and Earnings

The company keeps acceptable financial condition with a score of 6 out of 10, showing steady operational bases. This part is key for affordable growth plans, as it makes sure companies have the financial strength to maintain growth plans through different economic settings.

Financial condition points:

• Current ratio of 1.57 shows enough short-term cash
• Quick ratio of 1.45 shows strong immediate financial flexibility
• Debt to free cash flow ratio of 2.40 displays manageable debt levels
• Altman-Z score of 3.44 hints low failure risk

Earnings measures show steady performance with a 6 out of 10 score, including:

• Return on Equity of 14.91%, doing better than 70% of industry friends
• Profit margin of 3.89% placing in the top half of the industry
• Positive operating cash flow kept over the past five years

System Match for Affordable Growth

Granite Construction stands for the kind of chance affordable growth plans aim to find. The company's mix of above-average growth rates, fair price multiples, and steady financial base makes a balanced investment picture. The growth measures suggest expansion potential, while the price points show this growth is not overly priced into the stock. The acceptable condition and earnings scores give trust in the company's ability to follow its growth plan without taking on too much financial risk.

The basic analysis report available through ChartMill's detailed check gives more looks into these score parts and their base drivers.

For investors curious to find similar chances, the Affordable Growth screening system can find other companies meeting these balanced growth and price standards.

Disclaimer: This analysis is based on basic data and scores given by ChartMill and shows an objective check of the company's financial measures. It does not form investment guidance or a suggestion to buy, sell, or hold any security. Investors should do their own research and think about their personal financial situations before making investment choices.