GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - NYSE:GVA - US3873281071 - Common Stock
108.99 USD
-1.42 (-1.29%)
108.99 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 52 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make GVA a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
GVA's Return On Assets of 5.10% is fine compared to the rest of the industry. GVA outperforms 63.46% of its industry peers.
GVA's Return On Equity of 14.91% is fine compared to the rest of the industry. GVA outperforms 69.23% of its industry peers.
GVA has a Return On Invested Capital of 6.48%. This is comparable to the rest of the industry: GVA outperforms 53.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 17.22%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROIC | 6.48% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA's Profit Margin of 3.89% is fine compared to the rest of the industry. GVA outperforms 61.54% of its industry peers.
GVA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.33%, GVA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
GVA's Gross Margin of 15.61% is in line compared to the rest of the industry. GVA outperforms 50.00% of its industry peers.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
The number of shares outstanding for GVA has been reduced compared to 5 years ago.
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
GVA has an Altman-Z score of 3.47. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
GVA has a Altman-Z score (3.47) which is comparable to the rest of the industry.
GVA has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as GVA would need 2.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.40, GVA is doing good in the industry, outperforming 69.23% of the companies in the same industry.
GVA has a Debt/Equity ratio of 0.69. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. GVA outperforms 50.00% of its industry peers.
Although GVA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.67
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.57 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a Current ratio of 1.57. This is in the better half of the industry: GVA outperforms 73.08% of its industry peers.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, GVA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.63% over the past year.
The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.18%.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
3.2 Future
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.45% yearly.
The Revenue is expected to grow by 9.43% on average over the next years. This is quite good.
EPS Next Y39.55%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue Next Year12.39%
Revenue Next 2Y10.74%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.88, GVA is valued on the expensive side.
Based on the Price/Earnings ratio, GVA is valued cheaper than 82.69% of the companies in the same industry.
GVA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.64, which indicates a correct valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GVA to the average of the S&P500 Index (22.80), we can say GVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GVA indicates a somewhat cheap valuation: GVA is cheaper than 78.85% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GVA indicates a somewhat cheap valuation: GVA is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.44 | ||
| EV/EBITDA | 13.57 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GVA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 24.45% in the coming years.
PEG (NY)0.53
PEG (5Y)0.64
EPS Next 2Y27.31%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.54, GVA pays a better dividend. On top of this GVA pays more dividend than 86.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
14.32% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP14.32%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
108.99
-1.42 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.26%
Inst Owner Change0.76%
Ins Owners1.1%
Ins Owner Change-10.48%
Market Cap4.77B
Analysts80
Price Target131.92 (21.04%)
Short Float %10.34%
Short Ratio8.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP14.32%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.51%
Min EPS beat(2)12.74%
Max EPS beat(2)102.29%
EPS beat(4)2
Avg EPS beat(4)23.24%
Min EPS beat(4)-17.71%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)13.65%
EPS beat(12)7
Avg EPS beat(12)-124.98%
EPS beat(16)7
Avg EPS beat(16)-115.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)1.65%
Revenue beat(12)6
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)17.22%
PT rev (3m)27.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 16.64 | ||
| P/S | 1.17 | ||
| P/FCF | 15.44 | ||
| P/OCF | 10.85 | ||
| P/B | 4.49 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 13.57 |
EPS(TTM)5.22
EY4.79%
EPS(NY)6.55
Fwd EY6.01%
FCF(TTM)7.06
FCFY6.48%
OCF(TTM)10.04
OCFY9.21%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.53
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROCE | 10.71% | ||
| ROIC | 6.48% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 11.41% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% | ||
| FCFM | 7.58% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 98% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 125.42% | ||
| Profit Quality | 195.06% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.47 |
F-Score7
WACC9.66%
ROIC/WACC0.67
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
EPS Next Y39.55%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
Revenue Next Year12.39%
Revenue Next 2Y10.74%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y94.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year96.13%
EBIT Next 3Y33.81%
EBIT Next 5YN/A
FCF growth 1Y450.89%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y999.24%
OCF growth 3Y175.18%
OCF growth 5Y32.58%