NasdaqGS:GLDD

Stock Analysis Report

Executive Summary

Great Lakes Dredge & Dock Corporation provides dredging services in the United States and internationally.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Great Lakes Dredge & Dock's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GLDD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

GLDD

0.3%

US Construction

-1.0%

US Market


1 Year Return

25.0%

GLDD

13.3%

US Construction

18.0%

US Market

Return vs Industry: GLDD exceeded the US Construction industry which returned 13.3% over the past year.

Return vs Market: GLDD exceeded the US Market which returned 18% over the past year.


Shareholder returns

GLDDIndustryMarket
7 Day1.1%0.3%-1.0%
30 Day-7.7%1.2%0.6%
90 Day-2.3%6.1%7.9%
1 Year25.0%25.0%14.1%13.3%20.4%18.0%
3 Year127.8%127.8%11.0%8.5%48.0%38.5%
5 Year68.0%68.0%43.4%38.4%72.2%53.3%

Price Volatility Vs. Market

How volatile is Great Lakes Dredge & Dock's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Great Lakes Dredge & Dock undervalued compared to its fair value and its price relative to the market?

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLDD ($10.25) is trading below our estimate of fair value ($16.22)

Significantly Below Fair Value: GLDD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GLDD is good value based on its PE Ratio (11.7x) compared to the Construction industry average (17.8x).

PE vs Market: GLDD is good value based on its PE Ratio (11.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GLDD is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: GLDD is overvalued based on its PB Ratio (2.3x) compared to the US Construction industry average (1.8x).


Next Steps

Future Growth

How is Great Lakes Dredge & Dock forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLDD's forecast earnings growth (4.8% per year) is above the savings rate (1.7%).

Earnings vs Market: GLDD's earnings (4.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: GLDD's earnings are forecast to grow, but not significantly.

Revenue vs Market: GLDD's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GLDD's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GLDD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Great Lakes Dredge & Dock performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLDD has high quality earnings.

Growing Profit Margin: GLDD's current net profit margins (7.8%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: GLDD's earnings have grown significantly by 32.2% per year over the past 5 years.

Accelerating Growth: GLDD's earnings growth over the past year (405.3%) exceeds its 5-year average (32.2% per year).

Earnings vs Industry: GLDD earnings growth over the past year (405.3%) exceeded the Construction industry 2.4%.


Return on Equity

High ROE: GLDD's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Great Lakes Dredge & Dock's financial position?


Financial Position Analysis

Short Term Liabilities: GLDD's short term assets ($300.7M) exceed its short term liabilities ($203.9M).

Long Term Liabilities: GLDD's short term assets ($300.7M) do not cover its long term liabilities ($414.2M).


Debt to Equity History and Analysis

Debt Level: GLDD's debt to equity ratio (89.8%) is considered high.

Reducing Debt: GLDD's debt to equity ratio has reduced from 130% to 89.8% over the past 5 years.

Debt Coverage: GLDD's debt is well covered by operating cash flow (88.4%).

Interest Coverage: GLDD's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: GLDD has a high level of physical assets or inventory.

Debt Coverage by Assets: GLDD's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Great Lakes Dredge & Dock's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GLDD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GLDD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GLDD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GLDD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GLDD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GLDD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Lasse Petterson (63yo)

2.8yrs

Tenure

US$3,252,317

Compensation

Mr. Lasse J. Petterson has been the Chief Executive Officer of Great Lakes Dredge & Dock Corporation since May 2, 2017. Mr. Petterson served as the President and Chief Operating Officer of AMEC Inc. USA fr ...


CEO Compensation Analysis

Compensation vs Market: Lasse's total compensation ($USD3.25M) is above average for companies of similar size in the US market ($USD2.50M).

Compensation vs Earnings: Lasse's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lasse Petterson
CEO & Director2.8yrsUS$3.25m0.65% $4.3m
Mark Marinko
Senior VP & CFO5.7yrsUS$977.15k0.16% $1.1m
Kathleen LaVoy
Senior VP2.1yrsUS$801.60k0.037% $241.1k
David Simonelli
President of Dredging Division24.1yrsUS$1.16m0.36% $2.4m
Kyle Johnson
Executive VP & COO6.2yrsUS$661.46kno data
Tina Baginskis
Director of Investor Relations0yrsno datano data
Annette Cyr
Vice President of Human Resources2.1yrsno datano data
J. Gillespie
Senior Vice President of Operations0yrsno datano data
John Karas
Senior Vice President of Estimating0yrsUS$453.60kno data
Steven O'Hara
Senior Vice President of Corporate IIF & Northern Area Manager0yrsno datano data

4.2yrs

Average Tenure

58yo

Average Age

Experienced Management: GLDD's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lasse Petterson
CEO & Director2.8yrsUS$3.25m0.65% $4.3m
Douglas Steuert
Independent Director3.1yrsUS$183.00k0.066% $430.9k
Lawrence Dickerson
Independent Chairman2yrsUS$256.56k0.10% $656.2k
Kathleen Shanahan
Independent Director1.8yrsUS$105.71k0.054% $353.3k
Ryan Levenson
Independent Director3.2yrsUS$169.31k0.056% $367.1k
Elaine Dorward-King
Independent Director0.08yrsno datano data
Michael Walsh
Independent Director5.5yrsUS$162.00k0.14% $912.5k
Ronald Steger
Independent Director1.8yrsUS$106.38k0.034% $224.5k

2.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: GLDD's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Great Lakes Dredge & Dock Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Lakes Dredge & Dock Corporation
  • Ticker: GLDD
  • Exchange: NasdaqGS
  • Founded: 1890
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$655.180m
  • Shares outstanding: 63.92m
  • Website: https://www.gldd.com

Number of Employees


Location

  • Great Lakes Dredge & Dock Corporation
  • 2122 York Road
  • Oak Brook
  • Illinois
  • 60523
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLDDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2006
5GLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2006

Biography

Great Lakes Dredge & Dock Corporation provides dredging services in the United States and internationally. The company is involved in capital dredging that consists of port expansion projects, coastal restoration and land reclamations, trench digging for pipelines, tunnels and cables, and other dredging related to the construction of breakwaters, jetties, canals, and other marine structures. It also engages in channel deepening and port infrastructure development; coastal protection projects; re-dredging previously deepened waterways and harbors; and lake and river dredging, inland levee and construction dredging, environmental restoration and habitat improvement, and other marine construction projects. The company serves federal, state, and local governments; foreign governments; and domestic and foreign private concerns, such as utilities, oil, and other energy companies. It operates a fleet of 23 dredges, 16 material transportation barges, 1 drillboat, and various other support vessels. The company was formerly known as Lydon & Drews Partnership and changed its name to Great Lakes Dredge & Dock Corporation in 1905. Great Lakes Dredge & Dock Corporation was founded in 1890 and is headquartered in Oak Brook, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:56
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.