GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - NYSE:GVA - US3873281071 - Common Stock
105.03 USD
-0.55 (-0.52%)
104.63 USD
-0.4 (-0.38%)
GVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, GVA could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.10%, GVA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
GVA's Return On Equity of 14.91% is fine compared to the rest of the industry. GVA outperforms 69.09% of its industry peers.
With a Return On Invested Capital value of 6.48%, GVA perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GVA is significantly below the industry average of 17.10%.
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 better Profit Margin (3.89%) than 63.64% 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 52.73% of the companies in the same industry.
With a Gross Margin value of 15.61%, GVA perfoms like the industry average, outperforming 49.09% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GVA 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.
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
GVA has an Altman-Z score of 3.42. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.42, GVA perfoms like the industry average, outperforming 56.36% 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.
GVA's Debt to FCF ratio of 2.40 is fine compared to the rest of the industry. GVA outperforms 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 (0.69) which 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 | 3.42 |
ROIC/WACC0.61
WACC10.63%
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.
With a decent Current ratio value of 1.57, GVA is doing good in the industry, outperforming 74.55% of the companies in the same industry.
GVA has a Quick Ratio of 1.45. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a Quick ratio of 1.45. This is in the better half of the industry: GVA outperforms 76.36% 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.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
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
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.70% on average per year.
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 3Y21.7%
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
Based on the Price/Earnings ratio of 20.12, the valuation of GVA can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 83.64% of the companies listed in the same industry.
GVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
With a Price/Forward Earnings ratio of 16.04, GVA is valued correctly.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
GVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued cheaper than 81.82% of the companies 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 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.88 | ||
| EV/EBITDA | 13.08 |
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 21.70% in the coming years.
PEG (NY)0.51
PEG (5Y)0.61
EPS Next 2Y27.31%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.49%, which is pretty low.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.65. GVA pays more dividend than 87.27% of the companies in the same industry.
With a Dividend Yield of 0.49, GVA pays less dividend than the S&P500 average, which is at 2.36.
| 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 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 3Y21.7%
105.03
-0.55 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.34%
Inst Owner Change0.05%
Ins Owners1.11%
Ins Owner Change-3.19%
Market Cap4.60B
Analysts80
Price Target131.92 (25.6%)
Short Float %9.82%
Short Ratio7.52
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)0%
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 | 20.12 | ||
| Fwd PE | 16.04 | ||
| P/S | 1.13 | ||
| P/FCF | 14.88 | ||
| P/OCF | 10.46 | ||
| P/B | 4.33 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)5.22
EY4.97%
EPS(NY)6.55
Fwd EY6.23%
FCF(TTM)7.06
FCFY6.72%
OCF(TTM)10.04
OCFY9.56%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.51
PEG (5Y)0.61
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 | 3.42 |
F-Score7
WACC10.63%
ROIC/WACC0.61
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 3Y21.7%
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 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%