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 52 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. GVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make GVA suitable 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 has a Return On Assets of 4.25%. This is in the better half of the industry: GVA outperforms 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 12.45%, GVA is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
GVA's Return On Invested Capital of 6.25% is in line compared to the rest of the industry. GVA outperforms 59.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GVA is significantly below the industry average of 16.67%.
The last Return On Invested Capital (6.25%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 12.45% | ||
| ROIC | 6.25% |
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
Looking at the Profit Margin, with a value of 3.07%, GVA is in line with its industry, outperforming 59.62% of the companies in the same industry.
In the last couple of years the Profit Margin of GVA has grown nicely.
The Operating Margin of GVA (5.00%) is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 14.93%, GVA is in line with its industry, outperforming 48.08% 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% | ||
| PM (TTM) | 3.07% | ||
| GM | 14.93% |
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.
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
GVA has an Altman-Z score of 3.41. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
GVA has a better Altman-Z score (3.41) than 63.46% of its industry peers.
GVA has a debt to FCF ratio of 2.51. This is a good value and a sign of high solvency as GVA would need 2.51 years to pay back of all of its debts.
GVA has a better Debt to FCF ratio (2.51) than 73.08% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that GVA is somewhat dependend on debt financing.
GVA's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. GVA outperforms 48.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.64
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.57 indicates that GVA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.57, GVA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that GVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, 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 | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.93% over the past year.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.42%.
GVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.57% yearly.
EPS 1Y (TTM)27.93%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%104.76%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.06%
3.2 Future
The Earnings Per Share is expected to grow by 24.45% on average over the next years. This is a very strong growth
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
A Price/Earnings ratio of 22.00 indicates a rather expensive valuation of GVA.
76.92% of the companies in the same industry are more expensive than GVA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, GVA is valued at the same level.
GVA is valuated correctly with a Price/Forward Earnings ratio of 14.43.
Based on the Price/Forward Earnings ratio, GVA is valued cheaper than 88.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
GVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GVA is cheaper than 80.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaper than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.89 | ||
| EV/EBITDA | 12.41 |
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.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 24.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)0.67
EPS Next 2Y26.81%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 1.70, 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 2.37, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
GVA pays out 18.40% of its income as dividend. This is a sustainable payout ratio.
DP18.4%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
93.74
-0.38 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.4%
Inst Owner Change-0.01%
Ins Owners1.11%
Ins Owner Change4.19%
Market Cap4.10B
Analysts74.29
Price Target103.79 (10.72%)
Short Float %8.94%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP18.4%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)48.97%
Min EPS beat(2)-4.36%
Max EPS beat(2)102.29%
EPS beat(4)1
Avg EPS beat(4)12.33%
Min EPS beat(4)-30.91%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.43%
EPS beat(12)6
Avg EPS beat(12)-129.32%
EPS beat(16)7
Avg EPS beat(16)-111.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)6.23%
Revenue beat(8)4
Avg Revenue beat(8)1.63%
Revenue beat(12)7
Avg Revenue beat(12)0.74%
Revenue beat(16)8
Avg Revenue beat(16)-0.65%
PT rev (1m)0%
PT rev (3m)-1.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.43 | ||
| P/S | 1.02 | ||
| P/FCF | 13.89 | ||
| P/OCF | 9.41 | ||
| P/B | 4.13 | ||
| P/tB | 6.27 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)4.26
EY4.54%
EPS(NY)6.5
Fwd EY6.93%
FCF(TTM)6.75
FCFY7.2%
OCF(TTM)9.97
OCFY10.63%
SpS92.25
BVpS22.71
TBVpS14.95
PEG (NY)0.59
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 12.45% | ||
| ROCE | 10.33% | ||
| ROIC | 6.25% | ||
| ROICexc | 8.85% | ||
| ROICexgc | 11.75% | ||
| OM | 5% | ||
| PM (TTM) | 3.07% | ||
| GM | 14.93% | ||
| FCFM | 7.32% |
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 Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.51 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 110.44% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 9.15 | ||
| Cash Conversion | 132.39% | ||
| Profit Quality | 238.68% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.41 |
F-Score7
WACC9.76%
ROIC/WACC0.64
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)27.93%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%104.76%
EPS Next Y37.33%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue 1Y (TTM)11.42%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.06%
Revenue Next Year7.59%
Revenue Next 2Y6.81%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
EBIT growth 1Y286.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.4%
EBIT Next 3Y33.81%
EBIT Next 5YN/A
FCF growth 1Y390.24%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y1398%
OCF growth 3Y175.18%
OCF growth 5Y32.58%