GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
NYSE:GVA - New York Stock Exchange, Inc. - US3873281071 - Common Stock - Currency: USD
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 52 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. 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
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
With a decent Return On Assets value of 4.25%, GVA is doing good in the industry, outperforming 61.54% of the companies in the same industry.
GVA's Return On Equity of 12.45% is fine compared to the rest of the industry. GVA outperforms 63.46% of its industry peers.
The Return On Invested Capital of GVA (6.25%) 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 16.60%.
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 (3.07%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (5.00%) which is comparable to the rest of the industry.
The Gross Margin of GVA (14.93%) 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% | ||
| 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.
The number of shares outstanding for GVA has been reduced compared to 1 year ago.
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 3.34. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
GVA has a Altman-Z score of 3.34. This is in the better half of the industry: GVA outperforms 61.54% 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 71.15% 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's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. GVA outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.66
WACC9.5%
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 Current ratio of 1.57. This is in the better half of the industry: GVA outperforms 75.00% of its industry peers.
A Quick Ratio of 1.44 indicates that GVA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.44, GVA is doing good in 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
GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.93%, which is quite impressive.
GVA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
Looking at the last year, GVA shows a quite strong growth in Revenue. The Revenue has grown by 11.42% in the last year.
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
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.45% yearly.
GVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
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
Based on the Price/Earnings ratio of 21.01, 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 somewhat cheap valuation: GVA is cheaper than 78.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GVA to the average of the S&P500 Index (26.60), we can say GVA is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.77, which indicates a correct valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaper than 86.54% of the companies in the same industry.
GVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
GVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GVA is cheaper than 82.69% 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 | 13.26 | ||
| EV/EBITDA | 11.8 |
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)0.56
PEG (5Y)0.64
EPS Next 2Y26.81%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.57%, which is pretty low.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.78. GVA pays more dividend than 86.54% of the companies in the same industry.
With a Dividend Yield of 0.57, GVA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 Years33
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%
89.49
-0.62 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners118.59%
Inst Owner Change-0.29%
Ins Owners0.95%
Ins Owner Change3.66%
Market Cap3.91B
Analysts74.29
Price Target103.79 (15.98%)
Short Float %9.91%
Short Ratio6.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)-2.72%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)2.43%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 13.77 | ||
| P/S | 0.97 | ||
| P/FCF | 13.26 | ||
| P/OCF | 8.98 | ||
| P/B | 3.94 | ||
| P/tB | 5.99 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)4.26
EY4.76%
EPS(NY)6.5
Fwd EY7.26%
FCF(TTM)6.75
FCFY7.54%
OCF(TTM)9.97
OCFY11.14%
SpS92.25
BVpS22.71
TBVpS14.95
PEG (NY)0.56
PEG (5Y)0.64
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 | 3.34 |
F-Score7
WACC9.5%
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)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%