Granite Construction
Market Cap
US$1.3b
Last Updated
2020/02/16 23:40 UTC
Data Sources
Company Financials +
Executive Summary
Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and fair value.
Similar Companies
Share Price & News
How has Granite Construction's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GVA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.7%
GVA
4.2%
US Construction
1.5%
US Market
1 Year Return
-37.7%
GVA
17.5%
US Construction
20.1%
US Market
Return vs Industry: GVA underperformed the US Construction industry which returned 17.5% over the past year.
Return vs Market: GVA underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| GVA | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 4.2% | 1.5% |
| 30 Day | 5.9% | 0.7% | 1.4% |
| 90 Day | 6.9% | 4.2% | 8.7% |
| 1 Year | -36.8%-37.7% | 18.4%17.5% | 22.7%20.1% |
| 3 Year | -45.0%-47.0% | 9.4%7.0% | 50.1%40.5% |
| 5 Year | -15.9%-20.8% | 42.4%37.2% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Granite Construction's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
The Granite Construction (NYSE:GVA) Share Price Is Down 50% So Some Shareholders Are Wishing They Sold3 weeks ago | Simply Wall St
Granite Construction (NYSE:GVA) Has Debt But No Earnings; Should You Worry?1 month ago | Simply Wall St
Does Granite Construction Incorporated (NYSE:GVA) Have A Volatile Share Price?Valuation
Is Granite Construction undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GVA ($28.33) is trading below our estimate of fair value ($62.08)
Significantly Below Fair Value: GVA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GVA is unprofitable, so we can't compare its PE Ratio to the Construction industry average.
PE vs Market: GVA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GVA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: GVA is good value based on its PB Ratio (1.1x) compared to the US Construction industry average (1.8x).
Next Steps
Future Growth
How is Granite Construction forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
117.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GVA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: GVA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: GVA's is expected to become profitable in the next 3 years.
Revenue vs Market: GVA's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: GVA's revenue (4.6% 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
Next Steps
Past Performance
How has Granite Construction performed over the past 5 years?
-15.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GVA is currently unprofitable.
Growing Profit Margin: GVA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: GVA is unprofitable, and losses have increased over the past 5 years at a rate of -15.6% per year.
Accelerating Growth: Unable to compare GVA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: GVA is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (2.4%).
Return on Equity
High ROE: GVA has a negative Return on Equity (-7.34%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Granite Construction's financial position?
Financial Position Analysis
Short Term Liabilities: GVA's short term assets ($1.5B) exceed its short term liabilities ($855.8M).
Long Term Liabilities: GVA's short term assets ($1.5B) exceed its long term liabilities ($514.7M).
Debt to Equity History and Analysis
Debt Level: GVA's debt to equity ratio (32.4%) is considered satisfactory.
Reducing Debt: GVA's debt to equity ratio has reduced from 34.3% to 32.4% over the past 5 years.
Balance Sheet
Inventory Level: GVA has a high level of physical assets or inventory.
Debt Coverage by Assets: GVA's debt is covered by short term assets (assets are 3.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: GVA has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: GVA has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Granite Construction's current dividend yield, its reliability and sustainability?
1.84%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: GVA's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: GVA's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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: GVA is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: GVA's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Jim Roberts (62yo)
9.4yrs
Tenure
US$4,126,623
Compensation
Mr. James Hildebrand Roberts, also known as Jim, has been the Chief Executive Officer and President of Granite Construction Incorporated since September 1, 2010 and as its Interim Chief Operating Officer s ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD4.13M) is about average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.4yrs | US$4.13m | 0.45% $5.8m | |
| Senior VP & CFO | 1.6yrs | US$1.06m | 0.097% $1.2m | |
| Executive VP & COO | 0yrs | US$871.19k | 0.018% $234.6k | |
| Senior VP & Group Manager of Heavy Civil | 7.1yrs | US$1.36m | 0.089% $1.1m | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 1.5yrs | no data | no data | |
| Senior Vice President of Human Resources | 9.1yrs | no data | no data | |
| Senior VP & Group Manager of Federal | 5.1yrs | no data | no data | |
| Senior Vice President of Business Development | 4.7yrs | no data | no data | |
| Senior Vice President of Operations Services | 0yrs | no data | no data |
5.1yrs
Average Tenure
53.5yo
Average Age
Experienced Management: GVA's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.4yrs | US$4.13m | 0.45% $5.8m | |
| Independent Director | 17.1yrs | US$240.11k | 0.073% $945.4k | |
| Independent Chairman of the Board | 1.7yrs | US$337.80k | 0.15% $1.9m | |
| Independent Director | 3yrs | US$215.99k | 0.0057% $73.8k | |
| Independent Director | 14.1yrs | US$240.21k | 0.034% $441.2k | |
| Independent Director | 3yrs | US$215.99k | 0.011% $144.3k | |
| Independent Director | 1.7yrs | US$165.08k | 0.010% $128.2k | |
| Independent Director | 3yrs | US$216.99k | 0.0057% $73.8k | |
| Independent Director | 4yrs | US$228.09k | 0.0070% $90.6k | |
| Independent Director | 7.3yrs | US$223.23k | 0.0043% $55.3k |
3.5yrs
Average Tenure
64yo
Average Age
Experienced Board: GVA's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GVA 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 12%.
Top Shareholders
Company Information
Granite Construction Incorporated's company bio, 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$1.288b
- Shares outstanding: 45.48m
- Website: https://www.graniteconstruction.com
Number of Employees
Location
- Granite Construction Incorporated
- 585 West Beach Street
- Watsonville
- California
- 95076
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GVA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 1990 |
| GRG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1990 |
Biography
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. The Water segment focuses on water-related construction and water management solutions, as well as provides trenchless cured-in-place pipe rehabilitation services. The Specialty segment constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, and power projects; and undertakes bid-build, design-build, and construction management/general contractor contracts. The Materials segment focuses on production of aggregates, asphalt, and construction related materials, as well as sanitary and storm water rehabilitation products, such as cured-in-place pipe felt and fiberglass-based lining tubes. The company also engages in the construction of streets, highways, mass transit facilities, trenchless and underground utilities, tunnels, dams, and other infrastructure-related projects. In addition, it performs site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities; and provides construction management professional services. The company serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was founded in 1922 and is headquartered in Watsonville, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.