GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
NYSE:GVA - New York Stock Exchange, Inc. - US3873281071 - Common Stock - Currency: USD
GVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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. GVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make GVA a good candidate for value 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.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GVA (4.25%) is better than 60.78% of its industry peers.
The Return On Equity of GVA (12.45%) is better than 62.75% of its industry peers.
GVA has a Return On Invested Capital of 6.25%. This is comparable to the rest of the industry: GVA outperforms 58.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 16.96%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.25%), indicating increased profibility in the last year.
| 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
GVA has a Profit Margin of 3.07%. This is in the better half of the industry: GVA outperforms 60.78% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (5.00%) which is in line with its industry peers.
GVA has a Gross Margin of 14.93%. This is comparable to the rest of the industry: GVA outperforms 47.06% of its industry peers.
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 3.31. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.31, GVA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of GVA is 2.51, which is a good value as it means it would take GVA, 2.51 years of fcf income to pay off all of its debts.
GVA's Debt to FCF ratio of 2.51 is fine compared to the rest of the industry. GVA outperforms 68.63% of its industry peers.
GVA has a Debt/Equity ratio of 0.74. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 3.31 |
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.
The Current ratio of GVA (1.57) is better than 74.51% of its industry peers.
GVA has a Quick Ratio of 1.44. 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 1.44. This is in the better half of the industry: GVA outperforms 70.59% of its industry peers.
| 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.
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.
The Revenue has grown by 11.42% in the past year. This is quite good.
The Revenue has been growing slightly by 6.57% on average over the past years.
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
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.45% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.42, the valuation of GVA can be described as rather expensive.
Based on the Price/Earnings ratio, GVA is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
GVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
GVA is valuated correctly with a Price/Forward Earnings ratio of 13.39.
Based on the Price/Forward Earnings ratio, GVA is valued cheaper than 86.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, GVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 13.39 |
4.2 Price Multiples
78.43% of the companies in the same industry are more expensive than GVA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.89 | ||
| EV/EBITDA | 11.47 |
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.
GVA's earnings are expected to grow with 24.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)0.62
EPS Next 2Y26.81%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, 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 1.72. GVA pays more dividend than 86.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 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 Years32
5.3 Sustainability
18.40% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP18.4%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
87
+0.22 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners118.59%
Inst Owner Change-0.3%
Ins Owners0.95%
Ins Owner Change3.86%
Market Cap3.81B
Analysts74.29
Price Target103.79 (19.3%)
Short Float %10.75%
Short Ratio6.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP18.4%
Div Incr Years0
Div Non Decr Years32
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)-1.21%
PT rev (3m)2.78%
EPS NQ rev (1m)-7.45%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)2.43%
EPS NY rev (3m)2.73%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 13.39 | ||
| P/S | 0.94 | ||
| P/FCF | 12.89 | ||
| P/OCF | 8.73 | ||
| P/B | 3.83 | ||
| P/tB | 5.82 | ||
| EV/EBITDA | 11.47 |
EPS(TTM)4.26
EY4.9%
EPS(NY)6.5
Fwd EY7.47%
FCF(TTM)6.75
FCFY7.76%
OCF(TTM)9.97
OCFY11.46%
SpS92.25
BVpS22.71
TBVpS14.95
PEG (NY)0.55
PEG (5Y)0.62
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 | 3.31 |
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 Year93.75%
EBIT Next 3Y32.92%
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%