GRANITE CONSTRUCTION INC (GVA)
US3873281071 - Common Stock
GVA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Construction & Engineering industry. Both the profitability and financial health of GVA have multiple concerns. GVA has a decent growth rate and is not valued too expensively.
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.
The reported net income has been mixed in the past 5 years: GVA reported negative net income in multiple years.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GVA has a Return On Assets (1.55%) which is in line with its industry peers.
The Return On Equity of GVA (4.46%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.96%, GVA is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 4.46% | ||
| ROIC | 1.96% |
ROA(3y)1.93%
ROA(5y)-0.54%
ROE(3y)4.75%
ROE(5y)-1.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GVA has a Profit Margin of 1.24%. This is comparable to the rest of the industry: GVA outperforms 47.50% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
With a Operating Margin value of 1.48%, GVA is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GVA has declined.
With a Gross Margin value of 11.30%, GVA is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.48% | ||
| PM (TTM) | 1.24% | ||
| GM | 11.3% |
OM growth 3YN/A
OM growth 5Y-4.82%
PM growth 3YN/A
PM growth 5Y132.59%
GM growth 3Y5.29%
GM growth 5Y2.09%
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 increased 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
An Altman-Z score of 2.61 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
GVA's Altman-Z score of 2.61 is in line compared to the rest of the industry. GVA outperforms 52.50% of its industry peers.
The Debt to FCF ratio of GVA is 15.11, which is on the high side as it means it would take GVA, 15.11 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.11, GVA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
GVA has a Debt/Equity ratio of 0.63. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: GVA outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 15.11 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.22
WACC9.11%
2.3 Liquidity
GVA has a Current Ratio of 1.60. 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 1.60, GVA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that GVA should not have too much problems paying its short term obligations.
GVA's Quick ratio of 1.49 is fine compared to the rest of the industry. GVA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.94% over the past year.
The Earnings Per Share has been growing by 26.14% on average over the past years. This is a very strong growth
GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.37%.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
EPS 1Y (TTM)51.94%
EPS 3YN/A
EPS 5Y26.14%
EPS growth Q2Q46.43%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.5%
Revenue growth 5Y1.32%
Revenue growth Q2Q18.63%
3.2 Future
GVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.97% yearly.
Based on estimates for the next years, GVA will show a quite strong growth in Revenue. The Revenue will grow by 8.10% on average per year.
EPS Next Y39.27%
EPS Next 2Y27.1%
EPS Next 3Y16.97%
EPS Next 5YN/A
Revenue Next Year13.64%
Revenue Next 2Y10.33%
Revenue Next 3Y8.1%
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
With a Price/Earnings ratio of 17.74, GVA is valued on the expensive side.
Based on the Price/Earnings ratio, GVA is valued cheaper than 85.00% of the companies in the same industry.
GVA is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.74 indicates a correct valuation of GVA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 92.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. GVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GVA.
GVA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.36 | ||
| EV/EBITDA | 15.49 |
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.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 16.97% in the coming years.
PEG (NY)0.45
PEG (5Y)0.68
EPS Next 2Y27.1%
EPS Next 3Y16.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.86, GVA pays a better dividend. On top of this GVA pays more dividend than 92.50% of the companies listed in the same industry.
With a Dividend Yield of 0.95, GVA pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of GVA has a limited annual growth rate of 0.12%.
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)0.12%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
52.32% of the earnings are spent on dividend by GVA. This is a bit on the high side, but may be sustainable.
GVA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.32%
EPS Next 2Y27.1%
EPS Next 3Y16.97%
GRANITE CONSTRUCTION INC
NYSE:GVA (4/26/2024, 7:04:00 PM)
After market: 55.53 0 (0%)55.53
+0.77 (+1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 12.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.45
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 4.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.48% | ||
| PM (TTM) | 1.24% | ||
| GM | 11.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)51.94%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y39.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y