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GVA

Granite ConstructionNYSE:GVA Stock Report

Market Cap

US$1.8b

7D

-3.0%

1Y

50.9%

Updated

07 Dec, 2021

Data

Company Financials +
GVA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends3/6

GVA Stock Overview

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States.

Granite Construction Competitors

Quanta Services

NYSE:PWR

US$16.1b

AECOM

NYSE:ACM

US$10.2b

MasTec

NYSE:MTZ

US$6.7b

Comfort Systems USA

NYSE:FIX

US$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for Granite Construction
Historical stock prices
Current Share PriceUS$39.73
52 Week HighUS$44.31
52 Week LowUS$25.77
Beta1.41
1 Month Change-5.13%
3 Month Change-1.78%
1 Year Change50.89%
3 Year Change-8.73%
5 Year Change-32.66%
Change since IPO644.94%

Recent News & Updates

Nov 04
Shareholders Will Be Pleased With The Quality of Granite Construction's (NYSE:GVA) Earnings

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...

Oct 26
These 4 Measures Indicate That Granite Construction (NYSE:GVA) Is Using Debt Reasonably Well

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...

Sep 19
Granite Construction's (NYSE:GVA) Dividend Will Be US$0.13

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...

Aug 30
Granite Construction Incorporated's (NYSE:GVA) Intrinsic Value Is Potentially 22% Below Its Share Price

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

GVAUS ConstructionUS Market
7D-3.0%-2.3%-2.6%
1Y50.9%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

Is GVA's price volatile compared to industry and market?
GVA volatility
GVA Average Weekly Movement4.7%
Construction Industry Average Movement5.3%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19222,800Kyle Larkinhttps://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

How do Granite Construction's earnings and revenue compare to its market cap?
GVA fundamental statistics
Market CapUS$1.82b
Earnings (TTM)US$31.32m
Revenue (TTM)US$3.64b

58.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GVA income statement (TTM)
RevenueUS$3.64b
Cost of RevenueUS$3.23b
Gross ProfitUS$406.85m
ExpensesUS$375.53m
EarningsUS$31.32m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.68
Gross Margin11.17%
Net Profit Margin0.86%
Debt/Equity Ratio33.7%

How did GVA perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:18
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.