GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
NYSE:GVA - New York Stock Exchange, Inc. - US3873281071 - Common Stock - Currency: USD
Taking everything into account, GVA scores 6 out of 10 in our fundamental rating. GVA was compared to 49 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on GVA. With these ratings, GVA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
GVA had a positive operating cash flow in the past year.
GVA had positive earnings in 4 of the past 5 years.
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 65.31% of its industry peers.
Looking at the Return On Equity, with a value of 14.91%, GVA is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
GVA has a Return On Invested Capital (6.48%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 16.87%.
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 has a better Profit Margin (3.89%) than 63.27% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
Looking at the Operating Margin, with a value of 5.33%, GVA is in line with its industry, outperforming 51.02% of the companies in the same industry.
With a Gross Margin value of 15.61%, GVA perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
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
Compared to 5 years ago, GVA has less shares outstanding
GVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.44 indicates that GVA is not in any danger for bankruptcy at the moment.
GVA has a Altman-Z score of 3.44. This is in the better half of the industry: GVA outperforms 63.27% of its industry peers.
The Debt to FCF ratio of GVA is 2.40, which is a good value as it means it would take GVA, 2.40 years of fcf income to pay off all of its debts.
GVA has a better Debt to FCF ratio (2.40) than 73.47% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: GVA outperforms 51.02% of its industry peers.
Even though the debt/equity ratio score it not favorable for GVA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.62
WACC10.37%
2.3 Liquidity
GVA has a Current Ratio of 1.57. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA's Current ratio of 1.57 is fine compared to the rest of the industry. GVA outperforms 73.47% of its industry peers.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a better Quick ratio (1.45) than 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.63%, which is quite impressive.
GVA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.18%.
GVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.57% yearly.
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
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 24.45% on average per year.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y37.33%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue Next Year7.59%
Revenue Next 2Y6.81%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.47, the valuation of GVA can be described as rather expensive.
Based on the Price/Earnings ratio, GVA is valued cheaper than 81.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, GVA is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.45 indicates a correct valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, GVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued a bit cheaper than 77.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaper than 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 13.29 |
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.
The decent profitability rating of GVA 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)0.55
PEG (5Y)0.63
EPS Next 2Y26.81%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 1.60, GVA pays a better dividend. On top of this GVA pays more dividend than 85.71% of the companies listed in the same industry.
With a Dividend Yield of 0.49, GVA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 14.32% of its income as dividend. This is a sustainable payout ratio.
DP14.32%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
106.87
+0.85 (+0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.26%
Inst Owner Change-0.52%
Ins Owners1.1%
Ins Owner Change4%
Market Cap4.67B
Analysts80
Price Target112.54 (5.31%)
Short Float %9.06%
Short Ratio7.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)8.44%
PT rev (3m)8.44%
EPS NQ rev (1m)-4.6%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 16.45 | ||
| P/S | 1.15 | ||
| P/FCF | 15.12 | ||
| P/OCF | 10.63 | ||
| P/B | 4.4 | ||
| P/tB | 6.45 | ||
| EV/EBITDA | 13.29 |
EPS(TTM)5.22
EY4.88%
EPS(NY)6.5
Fwd EY6.08%
FCF(TTM)7.07
FCFY6.61%
OCF(TTM)10.05
OCFY9.41%
SpS93.24
BVpS24.3
TBVpS16.56
PEG (NY)0.55
PEG (5Y)0.63
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 | 3.44 |
F-Score7
WACC10.37%
ROIC/WACC0.62
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 Y37.33%
EPS Next 2Y26.81%
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 Year7.59%
Revenue Next 2Y6.81%
Revenue Next 3Y5.46%
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%