GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
NYSE:GVA - US3873281071 - Common Stock
108.13 USD
+2.4 (+2.27%)
We assign a fundamental rating of 6 out of 10 to GVA. GVA was compared to 53 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. GVA is valued quite cheap, while showing a decent growth score. This is a good combination! This makes GVA very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
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
With a decent Return On Assets value of 5.10%, GVA is doing good in the industry, outperforming 64.15% of the companies in the same industry.
With a decent Return On Equity value of 14.91%, GVA is doing good in the industry, outperforming 69.81% of the companies in the same industry.
GVA's Return On Invested Capital of 6.48% is in line compared to the rest of the industry. GVA outperforms 54.72% of its industry peers.
GVA had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 17.21%.
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 62.26% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
With a Operating Margin value of 5.33%, GVA perfoms like the industry average, outperforming 50.94% of the companies in the same industry.
The Gross Margin of GVA (15.61%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GVA has grown nicely.
| 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.
GVA has less shares outstanding than it did 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 3.43 indicates that GVA is not in any danger for bankruptcy at the moment.
GVA has a Altman-Z score of 3.43. This is in the better half of the industry: GVA outperforms 62.26% of its industry peers.
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.
The Debt to FCF ratio of GVA (2.40) is better than 69.81% of its industry peers.
GVA has a Debt/Equity ratio of 0.69. This is a neutral value indicating GVA is somewhat dependend on debt financing.
The Debt to Equity ratio of GVA (0.69) is comparable to the rest of the industry.
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 | 3.43 |
ROIC/WACC0.66
WACC9.83%
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.
The Current ratio of GVA (1.57) is better than 73.58% of its industry peers.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
The Quick ratio of GVA (1.45) is better than 75.47% of its industry peers.
| 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.
GVA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
The Revenue has been growing slightly by 7.18% in the past year.
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.
Based on estimates for the next years, GVA will show a small growth in Revenue. The Revenue will grow by 5.46% on average per year.
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 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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.71, which indicates a rather expensive current valuation of GVA.
81.13% 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 26.84, GVA is valued a bit cheaper.
GVA is valuated correctly with a Price/Forward Earnings ratio of 16.51.
88.68% of the companies in the same industry are more expensive than GVA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.48. GVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
81.13% of the companies in the same industry are more expensive than GVA, based on the Enterprise Value to EBITDA ratio.
GVA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GVA is cheaper than 79.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 13.16 |
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.
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)0.52
PEG (5Y)0.63
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.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.58. GVA pays more dividend than 86.79% of the companies in the same industry.
With a Dividend Yield of 0.47, GVA pays less dividend than the S&P500 average, which is at 2.32.
| 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 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 2Y27.31%
EPS Next 3Y24.45%
NYSE:GVA (9/4/2025, 2:13:31 PM)
108.13
+2.4 (+2.27%)
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 Change4.77%
Market Cap4.74B
Analysts80
Price Target126.48 (16.97%)
Short Float %9.63%
Short Ratio7.38
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)21.87%
PT rev (3m)21.87%
EPS NQ rev (1m)4.42%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)1.61%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)7.84%
Revenue NQ rev (3m)9.15%
Revenue NY rev (1m)4.46%
Revenue NY rev (3m)4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 16.51 | ||
| P/S | 1.16 | ||
| P/FCF | 15.32 | ||
| P/OCF | 10.77 | ||
| P/B | 4.46 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)5.22
EY4.83%
EPS(NY)6.55
Fwd EY6.06%
FCF(TTM)7.06
FCFY6.53%
OCF(TTM)10.04
OCFY9.29%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.52
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 | 3.43 |
F-Score7
WACC9.83%
ROIC/WACC0.66
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 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%