GLDD Stock Overview
Great Lakes Dredge & Dock Corporation provides dredging services in the United States.
Great Lakes Dredge & Dock Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$8.16|
|52 Week High||US$16.27|
|52 Week Low||US$7.98|
|1 Month Change||-17.83%|
|3 Month Change||-37.76%|
|1 Year Change||-46.63%|
|3 Year Change||-23.16%|
|5 Year Change||60.00%|
|Change since IPO||26.51%|
Recent News & Updates
Does Great Lakes Dredge & Dock (NASDAQ:GLDD) Have A Healthy Balance Sheet?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Great Lakes Dredge & Dock: Insider Buying In This Infrastructure Name
Summary Today, we put Great Lakes Dredge & Dock Corporation in the spotlight. The shares of this infrastructure concern has been under pressure recently, but the stock saw the first insider purchase of 2022 in August. An investment analysis follows in the paragraphs below. There is no such thing as work-life balance. Everything worth fighting for unbalances your life."― Alain de Botton May Company Presentation We tee up North America's largest dredging concern in today's analysis. Great Lakes Dredge & Dock Corporation (GLDD) should be a beneficiary of the large amount of funding the government has approved for infrastructure under the current administration. Despite this, the stock is down some 40% over the past year. The shares did see some insider buying in August, the first for 2022 to date. Better times ahead? An analysis follows below. Seeking Alpha Company Overview: Great Lakes Dredge & Dock is based in Houston and primarily provides dredging services throughout the United States. These services include but are not limited to 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. The company also provides coastal protection and other services to both the private and public sectors through a fleet of approximately 35 core ships and various other support vessels. The stock currently trades for around $9.50 a share and sports an approximate $620 million market capitalization. May Company Presentation Second Quarter Results: A good portion of the decline in the stock occurred after the company posted second quarter numbers on August 2nd. Great Lakes Dredge & Dock Corporation badly missed expectations, to put it mildly. The company had a GAAP loss of six cents a share when the consensus was looking for a 20 cents a share profit. Revenues fell some 12% on a year-over-year basis to $149.4 million, missing expectations by nearly $35 million. May Company Presentation Going through the press release that accompanied these tepid numbers, it appears Great Lakes Dredge & Dock Corporation hit the perfect storm of adverse conditions in the quarter. Management cited 'supply chain delays, inflationary pressures, adverse weather conditions combined with some atypical dredging project challenges' for the poor quarter. May Company Presentation The biggest hit to margins and profits it appears to be the delay to their dredging ships Liberty Island and Carolina dry dockings which were caused by supply chain challenges. This caused both dredges to be delayed several weeks mobilizing to their projects. And speaking of the perfect storm, several of the company's projects were impacted by unseasonably rough sea conditions along the east coast. This caused several vessels to have to stop operating and seek shelter. This extended completion timelines and delayed commencement of subsequent projects as well. In addition, three of the company's larger projects encountered differing and unanticipated site conditions which negatively impacted production. Management is renegotiating agreements with their clients on these projects to reflect these conditions. However, until resolved, revenue and profit recognition is delayed. Finally, higher-than-anticipated inflation impacted the cost of labor, operating supplies, and dry dockings in the quarter. The company is accounting for these higher costs within new bids. Finally, the company's order backlog shrunk to $373.8 million at the end of the quarter from $454.4 million at the same point in 2021. Looking for some good news on Great Lakes Dredge & Dock Corporation, the company did report it won $107 million worth of new awards in late August that will help its backlog. In addition, adjusted EBITDA was a positive $10.2 million in the second quarter despite very adverse conditions. Ending on a bright note, management mentioned the following positives within their earnings press release. We continue to see increased market demand backed by strong government support and development of new LNG export facilities that we expect will benefit Great Lakes and our market position in the upcoming years. Our new build program is on schedule with the new hopper dredge, the Galveston Island, expected to be ready for operations in the first half of 2023 and her sister ship expected to be ready for operations in 2025." Analyst Commentary & Balance Sheet: There has been very little in the way of analyst activity around this stock in 2022. Alliance Global Partners maintained their Buy rating and $17 price target on GLDD in mid-March, two weeks ago, Noble Financial took the same action with an identical price target. Those are the only analyst firms I can find that have chimed in around Great Lakes Dredge & Dock Corporation so far in 2022.
Great Lakes Dredge & Dock totals $107M in awarded work
Great Lakes Dredge & Dock (NASDAQ:GLDD) announced receipt of several major dredging awards totaling $107M including: Norfolk Harbor Navigation Improvements Project- Capital, Virginia, $56.8M. Charleston Lower Harbor Maintenance Dredging Project- Maintenance, South Carolina, $15.4M. Tampa Harbor Maintenance Dredging 45-Foot Project- Maintenance, Florida, $13M. New Jersey Wind Port, Stage 1, Access Channel Dredging Project- Capital, New Jersey, $7M. Various Maintenance Projects- New York, North Carolina, and South Carolina, $14.8M. David Simonelli, COO commented, “Great Lakes is pleased to add these projects to our backlog of deepening and maintenance dredging projects that will contribute to both our 2022 and 2023 performance. In addition, the land being created at the New Jersey Wind Port project will support the state of New Jersey’s efforts towards renewable energy development. All of these projects support the overall improvement and resiliency of our country's environment, coastlines and infrastructure.”
|GLDD||US Construction||US Market|
Return vs Industry: GLDD underperformed the US Construction industry which returned -0.8% over the past year.
Return vs Market: GLDD underperformed the US Market which returned -22.1% over the past year.
|GLDD Average Weekly Movement||7.8%|
|Construction Industry Average Movement||5.2%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: GLDD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: GLDD's weekly volatility (8%) has been stable over the past year.
About the Company
Great Lakes Dredge & Dock Corporation provides dredging services in the United States. The company engages 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 is also involved in coastal protection projects that comprises of moving sand from the ocean floor to shoreline locations where erosion threatens shoreline assets; maintenance dredging, which consists of the re-dredging of previously deepened waterways and harbors to remove silt, sand, and other accumulated sediments; land reclamations, channel deepening, and port infrastructure development; and lake and river dredging, inland levee and construction dredging, environmental restoration and habitat improvement, and other marine construction projects.
Great Lakes Dredge & Dock Fundamentals Summary
|GLDD fundamental statistics|
Is GLDD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GLDD income statement (TTM)|
|Cost of Revenue||US$589.57m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.69|
|Net Profit Margin||6.30%|
How did GLDD perform over the long term?See historical performance and comparison
Is GLDD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GLDD?
Other financial metrics that can be useful for relative valuation.
|What is GLDD's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does GLDD's PE Ratio compare to its peers?
|GLDD PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
BBCP Concrete Pumping Holdings
IESC IES Holdings
STRL Sterling Infrastructure
PRIM Primoris Services
GLDD Great Lakes Dredge & Dock
Price-To-Earnings vs Peers: GLDD is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (12x).
Price to Earnings Ratio vs Industry
How does GLDD's PE Ratio compare vs other companies in the US Construction Industry?
Price-To-Earnings vs Industry: GLDD is good value based on its Price-To-Earnings Ratio (11.8x) compared to the US Construction industry average (25.5x)
Price to Earnings Ratio vs Fair Ratio
What is GLDD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||11.8x|
|Fair PE Ratio||n/a|
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GLDD's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of GLDD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: Insufficient data to calculate GLDD's fair value for valuation analysis.
Significantly Below Fair Value: Insufficient data to calculate GLDD's fair value for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.
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How is Great Lakes Dredge & Dock forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted Capital Goods industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Great Lakes Dredge & Dock has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
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- Take a look at our analysis of GLDD’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
How has Great Lakes Dredge & Dock performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GLDD has a high level of non-cash earnings.
Growing Profit Margin: GLDD's current net profit margins (6.3%) are higher than last year (4.9%).
Past Earnings Growth Analysis
Earnings Trend: GLDD has become profitable over the past 5 years, growing earnings by 39.7% per year.
Accelerating Growth: GLDD's earnings growth over the past year (33.6%) is below its 5-year average (39.7% per year).
Earnings vs Industry: GLDD earnings growth over the past year (33.6%) exceeded the Construction industry 16.7%.
Return on Equity
High ROE: GLDD's Return on Equity (11%) is considered low.
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How is Great Lakes Dredge & Dock's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: GLDD's short term assets ($283.1M) exceed its short term liabilities ($141.6M).
Long Term Liabilities: GLDD's short term assets ($283.1M) do not cover its long term liabilities ($461.4M).
Debt to Equity History and Analysis
Debt Level: GLDD's net debt to equity ratio (59.6%) is considered high.
Reducing Debt: GLDD's debt to equity ratio has reduced from 177.1% to 77.9% over the past 5 years.
Debt Coverage: GLDD's debt is not well covered by operating cash flow (4.4%).
Interest Coverage: GLDD's interest payments on its debt are well covered by EBIT (5.1x coverage).
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What is Great Lakes Dredge & Dock current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Great Lakes Dredge & Dock Dividend Yield vs Market|
|Company (Great Lakes Dredge & Dock)||0%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Construction)||0.9%|
|Analyst forecast in 3 Years (Great Lakes Dredge & Dock)||n/a|
Notable Dividend: Unable to evaluate GLDD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GLDD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.
Earnings Payout to Shareholders
Earnings Coverage: GLDD is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as GLDD has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lasse Petterson (66 yo)
Mr. Lasse J. Petterson has been the Chief Executive Officer of Great Lakes Dredge & Dock Corporation since May 2, 2017 and has been its President since March 2020. Mr. Petterson served as the President and...
CEO Compensation Analysis
|Lasse Petterson's Compensation vs Great Lakes Dredge & Dock Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$3m||US$755k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$3m||US$725k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$4m||US$700k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$3m||US$700k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$3m||US$467k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$3k||n/a|
Compensation vs Market: Lasse's total compensation ($USD3.10M) is about average for companies of similar size in the US market ($USD2.92M).
Compensation vs Earnings: Lasse's compensation has been consistent with company performance over the past year.
Experienced Management: GLDD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: GLDD's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GLDD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|05 Aug 22||BuyUS$96,540||Lasse Petterson||Individual||10,000||US$9.65|
|09 May 22||SellUS$24,994||David Simonelli||Individual||1,770||US$14.12|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Great Lakes Dredge & Dock Corporation's employee growth, exchange listings and data sources
- Name: Great Lakes Dredge & Dock Corporation
- Ticker: GLDD
- Exchange: NasdaqGS
- Founded: 1890
- Industry: Construction and Engineering
- Sector: Capital Goods
- Implied Market Cap: US$539.240m
- Shares outstanding: 66.08m
- Website: https://www.gldd.com
Number of Employees
- Great Lakes Dredge & Dock Corporation
- 9811 Katy Freeway
- Suite 1200
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GLDD||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Dec 2006|
|5GL||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 2006|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.