GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - NYSE:GVA - US3873281071 - Common Stock
102.55 USD
-0.2 (-0.19%)
102.55 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 55 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of GVA get a neutral evaluation. Nothing too spectacular is happening here. An interesting combination arises when we look at growth and value: GVA is growing strongly while it also seems undervalued. With these ratings, GVA could be worth investigating further 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.
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 has a better Return On Assets (5.10%) than 61.82% of its industry peers.
With a decent Return On Equity value of 14.91%, GVA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Return On Invested Capital of GVA (6.48%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 16.87%.
The last Return On Invested Capital (6.48%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| 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 Profit Margin of 3.89%. This is in the better half of the industry: GVA outperforms 61.82% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (5.33%) which is in line with its industry peers.
GVA has a Gross Margin (15.61%) which is in line with 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
GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GVA has been reduced compared to 1 year ago.
The number of shares outstanding for GVA has been reduced compared to 5 years ago.
GVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.38 indicates that GVA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.38, GVA is in line with its industry, outperforming 58.18% of the companies in the same industry.
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.
The Debt to FCF ratio of GVA (2.40) is better than 72.73% 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 52.73% 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 | 3.38 |
ROIC/WACC0.67
WACC9.64%
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 better Current ratio (1.57) than 74.55% of its industry peers.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, GVA is doing good in the industry, outperforming 72.73% 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 61.71% 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
The Revenue has grown by 14.20% in the past year. This is quite good.
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)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)14.2%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.70% yearly.
Based on estimates for the next years, GVA will show a quite strong growth in Revenue. The Revenue will grow by 9.43% on average per year.
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue Next Year11.61%
Revenue Next 2Y10.53%
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 17.47, GVA is valued on the expensive side.
Based on the Price/Earnings ratio, GVA is valued cheaply inside the industry as 87.27% of the companies are valued more expensively.
GVA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.99, GVA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 89.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. GVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
GVA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GVA is cheaper than 80.00% of the companies in the same industry.
83.64% of the companies in the same industry are more expensive than GVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 12.77 |
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.
GVA's earnings are expected to grow with 21.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)0.53
EPS Next 2Y26%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.76, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
With a Dividend Yield of 0.51, GVA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has 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
14.32% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP14.32%
EPS Next 2Y26%
EPS Next 3Y21.7%
102.55
-0.2 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.34%
Inst Owner Change3.19%
Ins Owners1.11%
Ins Owner Change-0.23%
Market Cap4.49B
Revenue(TTM)4.01B
Net Income(TTM)158.48M
Analysts82.86
Price Target134.64 (31.29%)
Short Float %9.07%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)2.06%
PT rev (3m)19.64%
EPS NQ rev (1m)-3.72%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 15.99 | ||
| P/S | 1.1 | ||
| P/FCF | 14.53 | ||
| P/OCF | 10.21 | ||
| P/B | 4.23 | ||
| P/tB | 6.2 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)5.87
EY5.72%
EPS(NY)6.41
Fwd EY6.25%
FCF(TTM)7.06
FCFY6.88%
OCF(TTM)10.04
OCFY9.79%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.45
PEG (5Y)0.53
Graham Number56.62
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
ROICexgc growth 3YN/A
ROICexgc 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 | 3.38 |
F-Score7
WACC9.64%
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)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue 1Y (TTM)14.2%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y94.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.85%
EBIT Next 3Y40.86%
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%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 17.47 and the Price/Book (PB) ratio is 4.23.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 14.32%.