| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 3/6 |
GVA Stock Overview
Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States.
Granite Construction Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$39.73 |
| 52 Week High | US$44.31 |
| 52 Week Low | US$25.77 |
| Beta | 1.41 |
| 1 Month Change | -5.13% |
| 3 Month Change | -1.78% |
| 1 Year Change | 50.89% |
| 3 Year Change | -8.73% |
| 5 Year Change | -32.66% |
| Change since IPO | 644.94% |
Recent News & Updates
Shareholders Will Be Pleased With The Quality of Granite Construction's (NYSE:GVA) Earnings
Even though Granite Construction Incorporated's ( NYSE:GVA ) recent earnings release was robust, the market didn't seem...
These 4 Measures Indicate That Granite Construction (NYSE:GVA) Is Using Debt Reasonably Well
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Granite Construction's (NYSE:GVA) Dividend Will Be US$0.13
The board of Granite Construction Incorporated ( NYSE:GVA ) has announced that it will pay a dividend on the 15th of...
Granite Construction Incorporated's (NYSE:GVA) Intrinsic Value Is Potentially 22% Below Its Share Price
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Granite Construction...
Shareholder Returns
| GVA | US Construction | US Market | |
|---|---|---|---|
| 7D | -3.0% | -2.3% | -2.6% |
| 1Y | 50.9% | 46.7% | 17.8% |
Return vs Industry: GVA exceeded the US Construction industry which returned 43.5% over the past year.
Return vs Market: GVA exceeded the US Market which returned 16.5% over the past year.
Price Volatility
| GVA volatility | |
|---|---|
| GVA Average Weekly Movement | 4.7% |
| Construction Industry Average Movement | 5.3% |
| Market Average Movement | 6.2% |
| 10% most volatile stocks in US Market | 14.8% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: GVA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: GVA's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1922 | 2,800 | Kyle Larkin | https://www.graniteconstruction.com |
Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. The company operates through Transportation, Water, Specialty, and Materials segments. The Transportation segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, and marine ports.
Granite Construction Fundamentals Summary
| GVA fundamental statistics | |
|---|---|
| Market Cap | US$1.82b |
| Earnings (TTM) | US$31.32m |
| Revenue (TTM) | US$3.64b |
58.1x
P/E Ratio0.5x
P/S RatioIs GVA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GVA income statement (TTM) | |
|---|---|
| Revenue | US$3.64b |
| Cost of Revenue | US$3.23b |
| Gross Profit | US$406.85m |
| Expenses | US$375.53m |
| Earnings | US$31.32m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.68 |
| Gross Margin | 11.17% |
| Net Profit Margin | 0.86% |
| Debt/Equity Ratio | 33.7% |
How did GVA perform over the long term?
See historical performance and comparisonDividends
1.3%
Current Dividend Yield76%
Payout RatioValuation
Is Granite Construction undervalued compared to its fair value and its price relative to the market?
25.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GVA ($39.73) is trading below our estimate of fair value ($53.56)
Significantly Below Fair Value: GVA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GVA is poor value based on its PE Ratio (58.1x) compared to the US Construction industry average (27.9x).
PE vs Market: GVA is poor value based on its PE Ratio (58.1x) compared to the US market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: GVA is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: GVA is good value based on its PB Ratio (1.8x) compared to the US Construction industry average (2.3x).
Future Growth
How is Granite Construction forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
61.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GVA's forecast earnings growth (61.6% per year) is above the savings rate (2%).
Earnings vs Market: GVA's earnings (61.6% per year) are forecast to grow faster than the US market (13.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GVA's revenue (4.4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: GVA's revenue (4.4% 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 GVA's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Granite Construction performed over the past 5 years?
-57.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GVA has a large one-off loss of $51.3M impacting its September 30 2021 financial results.
Growing Profit Margin: GVA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: GVA has become profitable over the past 5 years, growing earnings by -57% per year.
Accelerating Growth: GVA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: GVA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (17.7%).
Return on Equity
High ROE: GVA's Return on Equity (2.8%) is considered low.
Financial Health
How is Granite Construction's financial position?
Financial Position Analysis
Short Term Liabilities: GVA's short term assets ($1.7B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: GVA's short term assets ($1.7B) exceed its long term liabilities ($439.1M).
Debt to Equity History and Analysis
Debt Level: GVA has more cash than its total debt.
Reducing Debt: GVA's debt to equity ratio has increased from 28.3% to 33.7% over the past 5 years.
Debt Coverage: GVA's debt is well covered by operating cash flow (55%).
Interest Coverage: GVA's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Dividend
What is Granite Construction current dividend yield, its reliability and sustainability?
1.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GVA's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: GVA's dividend (1.31%) is low compared to the top 25% of dividend payers in the US market (3.62%).
Stability and Growth of Payments
Stable Dividend: GVA's dividends per share have been stable in the past 10 years.
Growing Dividend: GVA's dividend payments have not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (76%), GVA's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GVA's dividends in 3 years are forecast to be well covered by earnings (20.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Kyle Larkin (49 yo)
1.25yrs
Tenure
US$904,545
Compensation
Mr. Kyle T. Larkin has been President of Granite Construction Incorporated since September 22, 2020. He is Chief Executive Officer and Director of Granite Construction Incorporated since June 02, 2021. Mr....
CEO Compensation Analysis
Compensation vs Market: Kyle's total compensation ($USD904.55K) is below average for companies of similar size in the US market ($USD3.71M).
Compensation vs Earnings: Kyle's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GVA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: GVA's board of directors are considered experienced (4.2 years average tenure).
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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Granite Construction Incorporated's employee growth, exchange listings and data sources
Key Information
- Name: Granite Construction Incorporated
- Ticker: GVA
- Exchange: NYSE
- Founded: 1922
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: US$1.821b
- Shares outstanding: 45.83m
- Website: https://www.graniteconstruction.com
Number of Employees
Location
- Granite Construction Incorporated
- 585 West Beach Street
- Watsonville
- California
- 95076
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/12/07 00:18 |
| End of Day Share Price | 2021/12/06 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.