GRANITE RIDGE RESOURCES INC (GRNT) Stock Fundamental Analysis
NYSE:GRNT - New York Stock Exchange, Inc. - US3874321074 - Common Stock - Currency: USD
Taking everything into account, GRNT scores 5 out of 10 in our fundamental rating. GRNT was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While GRNT is still in line with the averages on profitability rating, there are concerns on its financial health. GRNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GRNT was profitable.
In the past year GRNT had a positive cash flow from operations.
Of the past 5 years GRNT 4 years were profitable.
Each year in the past 5 years GRNT had a positive operating cash flow.
1.2 Ratios
GRNT has a Return On Assets (1.80%) which is comparable to the rest of the industry.
GRNT's Return On Equity of 2.93% is on the low side compared to the rest of the industry. GRNT is outperformed by 61.03% of its industry peers.
GRNT has a better Return On Invested Capital (7.75%) than 61.50% of its industry peers.
GRNT had an Average Return On Invested Capital over the past 3 years of 16.49%. This is significantly below the industry average of 25.70%.
The last Return On Invested Capital (7.75%) for GRNT is well below the 3 year average (16.49%), which needs to be investigated, but indicates that GRNT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 2.93% | ||
| ROIC | 7.75% |
ROA(3y)14.52%
ROA(5y)11.52%
ROE(3y)18.16%
ROE(5y)14.28%
ROIC(3y)16.49%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.91%, GRNT is in line with its industry, outperforming 41.31% of the companies in the same industry.
GRNT's Profit Margin has declined in the last couple of years.
GRNT has a Operating Margin (25.10%) which is in line with its industry peers.
GRNT's Operating Margin has declined in the last couple of years.
GRNT has a Gross Margin of 93.16%. This is amongst the best in the industry. GRNT outperforms 97.65% of its industry peers.
GRNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.1% | ||
| PM (TTM) | 4.91% | ||
| GM | 93.16% |
OM growth 3Y-19.75%
OM growth 5YN/A
PM growth 3Y-49.27%
PM growth 5YN/A
GM growth 3Y-0.22%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GRNT is still creating some value.
GRNT has more shares outstanding than it did 1 year ago.
GRNT has a worse debt/assets ratio than last year.
2.2 Solvency
GRNT has an Altman-Z score of 1.69. This is a bad value and indicates that GRNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, GRNT is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
GRNT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
GRNT has a better Debt to Equity ratio (0.32) than 60.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC0.72
WACC10.71%
2.3 Liquidity
A Current Ratio of 1.33 indicates that GRNT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, GRNT is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
GRNT has a Quick Ratio of 1.33. This is a normal value and indicates that GRNT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.33, GRNT is doing good in the industry, outperforming 67.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for GRNT have decreased strongly by -30.86% in the last year.
GRNT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -43.98% yearly.
GRNT shows a decrease in Revenue. In the last year, the revenue decreased by -3.56%.
Measured over the past years, GRNT shows a quite strong growth in Revenue. The Revenue has been growing by 9.41% on average per year.
EPS 1Y (TTM)-30.86%
EPS 3Y-43.98%
EPS 5YN/A
EPS Q2Q%-15%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y9.41%
Revenue growth 5YN/A
Sales Q2Q%-0.46%
3.2 Future
Based on estimates for the next years, GRNT will show a small growth in Earnings Per Share. The EPS will grow by 3.57% on average per year.
The Revenue is expected to grow by 11.45% on average over the next years. This is quite good.
EPS Next Y35.74%
EPS Next 2Y9.84%
EPS Next 3Y3.57%
EPS Next 5YN/A
Revenue Next Year25.28%
Revenue Next 2Y17.48%
Revenue Next 3Y11.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.84, the valuation of GRNT can be described as reasonable.
GRNT's Price/Earnings ratio is a bit cheaper when compared to the industry. GRNT is cheaper than 71.36% of the companies in the same industry.
GRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
GRNT is valuated cheaply with a Price/Forward Earnings ratio of 6.51.
GRNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. GRNT is cheaper than 82.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, GRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRNT is valued cheaply inside the industry as 86.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.85 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y9.84%
EPS Next 3Y3.57%
5. Dividend
5.1 Amount
GRNT has a Yearly Dividend Yield of 8.92%, which is a nice return.
Compared to an average industry Dividend Yield of 7.27, GRNT pays a better dividend. On top of this GRNT pays more dividend than 82.63% of the companies listed in the same industry.
GRNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.92% |
5.2 History
GRNT has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
308.39% of the earnings are spent on dividend by GRNT. This is not a sustainable payout ratio.
DP308.39%
EPS Next 2Y9.84%
EPS Next 3Y3.57%
NYSE:GRNT (5/6/2025, 3:19:02 PM)
4.95
+0.04 (+0.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.67%
Inst Owner Change2.11%
Ins Owners3.05%
Ins Owner Change17.47%
Market Cap649.09M
Analysts78.33
Price Target7.62 (53.94%)
Short Float %2.98%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.92% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP308.39%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.23%
Min EPS beat(2)-5.13%
Max EPS beat(2)31.58%
EPS beat(4)2
Avg EPS beat(4)8.61%
Min EPS beat(4)-5.87%
Max EPS beat(4)31.58%
EPS beat(8)3
Avg EPS beat(8)-0.12%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-4.01%
Max Revenue beat(2)4.21%
Revenue beat(4)1
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-4.51%
Max Revenue beat(4)4.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.24%
PT rev (3m)-2.18%
EPS NQ rev (1m)10.04%
EPS NQ rev (3m)16.73%
EPS NY rev (1m)2.79%
EPS NY rev (3m)9.39%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 6.51 | ||
| P/S | 1.71 | ||
| P/FCF | N/A | ||
| P/OCF | 2.35 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 2.85 |
EPS(TTM)0.56
EY11.31%
EPS(NY)0.76
Fwd EY15.36%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)2.1
OCFY42.48%
SpS2.9
BVpS4.85
TBVpS4.85
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 2.93% | ||
| ROCE | 10.21% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 8.12% | ||
| OM | 25.1% | ||
| PM (TTM) | 4.91% | ||
| GM | 93.16% | ||
| FCFM | N/A |
ROA(3y)14.52%
ROA(5y)11.52%
ROE(3y)18.16%
ROE(5y)14.28%
ROIC(3y)16.49%
ROIC(5y)N/A
ROICexc(3y)17.88%
ROICexc(5y)N/A
ROICexgc(3y)17.88%
ROICexgc(5y)N/A
ROCE(3y)21.7%
ROCE(5y)N/A
ROICexcg growth 3Y-29.25%
ROICexcg growth 5YN/A
ROICexc growth 3Y-29.25%
ROICexc growth 5YN/A
OM growth 3Y-19.75%
OM growth 5YN/A
PM growth 3Y-49.27%
PM growth 5YN/A
GM growth 3Y-0.22%
GM growth 5YN/A
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 196.56% | ||
| Cap/Sales | 91.31% | ||
| Interest Coverage | 6.59 | ||
| Cash Conversion | 101.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.69 |
F-Score5
WACC10.71%
ROIC/WACC0.72
Cap/Depr(3y)214.02%
Cap/Depr(5y)204.11%
Cap/Sales(3y)76.55%
Cap/Sales(5y)88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.86%
EPS 3Y-43.98%
EPS 5YN/A
EPS Q2Q%-15%
EPS Next Y35.74%
EPS Next 2Y9.84%
EPS Next 3Y3.57%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y9.41%
Revenue growth 5YN/A
Sales Q2Q%-0.46%
Revenue Next Year25.28%
Revenue Next 2Y17.48%
Revenue Next 3Y11.45%
Revenue Next 5YN/A
EBIT growth 1Y-18.66%
EBIT growth 3Y-12.21%
EBIT growth 5YN/A
EBIT Next Year287.63%
EBIT Next 3Y66.07%
EBIT Next 5YN/A
FCF growth 1Y-26.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.96%
OCF growth 3Y15.02%
OCF growth 5YN/A