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Granite Construction

NYSE:GVA
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GVA
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. The last earnings update was 24 days ago. More info.


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GVA Share Price and Events
7 Day Returns
-1.3%
NYSE:GVA
2.3%
US Construction
2.4%
US Market
1 Year Returns
-20.5%
NYSE:GVA
-8.7%
US Construction
1.9%
US Market
GVA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Granite Construction (GVA) -1.3% 3% 14.9% -20.5% 4.4% 16.5%
US Construction 2.3% 2.9% 18.1% -8.7% 23.6% -4.4%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • GVA underperformed the Construction industry which returned -8.7% over the past year.
  • GVA underperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
GVA
Industry
5yr Volatility vs Market

Value

 Is Granite Construction undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Granite Construction to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Granite Construction.

NYSE:GVA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GVA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.099 (1 + (1- 21%) (17.49%))
1.168
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.168 * 5.96%)
9.69%

Discounted Cash Flow Calculation for NYSE:GVA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Granite Construction is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GVA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.69%)
2019 75.00 Analyst x1 68.37
2020 125.00 Analyst x1 103.89
2021 165.03 Est @ 32.02% 125.04
2022 203.37 Est @ 23.23% 140.48
2023 238.11 Est @ 17.08% 149.95
2024 268.53 Est @ 12.78% 154.17
2025 294.75 Est @ 9.76% 154.27
2026 317.31 Est @ 7.65% 151.40
2027 336.90 Est @ 6.18% 146.55
2028 354.23 Est @ 5.14% 140.48
Present value of next 10 years cash flows $1,334.60
NYSE:GVA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $354.23 × (1 + 2.73%) ÷ (9.69% – 2.73%)
$5,228.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,228.23 ÷ (1 + 9.69%)10
$2,073.35
NYSE:GVA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,334.60 + $2,073.35
$3,407.95
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,407.95 / 46.69
$72.99
NYSE:GVA Discount to Share Price
Calculation Result
Value per share (USD) From above. $72.99
Current discount Discount to share price of $46.84
= -1 x ($46.84 - $72.99) / $72.99
35.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Granite Construction is available for.
Intrinsic value
36%
Share price is $46.84 vs Future cash flow value of $72.99
Current Discount Checks
For Granite Construction to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Granite Construction's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Granite Construction's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Granite Construction's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Granite Construction's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GVA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.97
NYSE:GVA Share Price ** NYSE (2019-03-18) in USD $46.84
United States of America Construction Industry PE Ratio Median Figure of 29 Publicly-Listed Construction Companies 17.29x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Granite Construction.

NYSE:GVA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GVA Share Price ÷ EPS (both in USD)

= 46.84 ÷ 0.97

48.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Granite Construction is overvalued based on earnings compared to the US Construction industry average.
  • Granite Construction is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Granite Construction's expected growth come at a high price?
Raw Data
NYSE:GVA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 48.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
28.7%per year
United States of America Construction Industry PEG Ratio Median Figure of 25 Publicly-Listed Construction Companies 1.15x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:GVA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 48.11x ÷ 28.7%

1.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Granite Construction is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Granite Construction's assets?
Raw Data
NYSE:GVA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $28.96
NYSE:GVA Share Price * NYSE (2019-03-18) in USD $46.84
United States of America Construction Industry PB Ratio Median Figure of 34 Publicly-Listed Construction Companies 1.88x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:GVA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GVA Share Price ÷ Book Value per Share (both in USD)

= 46.84 ÷ 28.96

1.62x

* Primary Listing of Granite Construction.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Granite Construction is good value based on assets compared to the US Construction industry average.
X
Value checks
We assess Granite Construction's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Granite Construction has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Granite Construction expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Granite Construction expected to grow at an attractive rate?
  • Granite Construction's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Granite Construction's earnings growth is expected to exceed the United States of America market average.
  • Granite Construction's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GVA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GVA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 28.7%
NYSE:GVA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 9.2%
United States of America Construction Industry Earnings Growth Rate Market Cap Weighted Average 23.4%
United States of America Construction Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GVA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GVA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 5,348 341 1
2022-12-31 5,014 306 1
2021-12-31 4,425 240 3
2020-12-31 4,121 255 211 6
2019-12-31 3,749 200 160 5
NYSE:GVA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,318 86 42
2018-09-30 3,227 96 69
2018-06-30 3,129 48 59
2018-03-31 3,085 95 81
2017-12-31 2,990 146 69
2017-09-30 2,855 157 52
2017-06-30 2,702 149 44
2017-03-31 2,544 97 44
2016-12-31 2,515 73 57
2016-09-30 2,478 56 70
2016-06-30 2,426 71 63
2016-03-31 2,390 63 59

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Granite Construction's earnings are expected to grow significantly at over 20% yearly.
  • Granite Construction's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GVA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Granite Construction Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GVA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 6.72 6.72 6.72 1.00
2022-12-31 6.09 6.09 6.09 1.00
2021-12-31 4.95 5.15 4.75 2.00
2020-12-31 4.41 4.55 4.36 5.00
2019-12-31 3.35 3.69 3.15 5.00
NYSE:GVA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.97
2018-09-30 1.64
2018-06-30 1.48
2018-03-31 2.04
2017-12-31 1.74
2017-09-30 1.32
2017-06-30 1.10
2017-03-31 1.11
2016-12-31 1.44
2016-09-30 1.76
2016-06-30 1.60
2016-03-31 1.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Granite Construction is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Granite Construction's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Granite Construction has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Granite Construction performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Granite Construction's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Granite Construction has delivered over 20% year on year earnings growth in the past 5 years.
  • Granite Construction's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Granite Construction's 1-year earnings growth is negative, it can't be compared to the US Construction industry average.
Earnings and Revenue History
Granite Construction's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Granite Construction Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GVA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,318.41 42.41 272.78
2018-09-30 3,227.36 68.64 253.42
2018-06-30 3,128.90 58.95 232.15
2018-03-31 3,084.69 81.47 222.23
2017-12-31 2,989.71 69.10 220.40
2017-09-30 2,855.12 52.50 222.99
2017-06-30 2,701.90 43.71 227.69
2017-03-31 2,543.57 43.77 225.00
2016-12-31 2,514.62 57.12 217.37
2016-09-30 2,478.10 69.62 219.04
2016-06-30 2,425.57 63.19 210.11
2016-03-31 2,390.23 58.60 208.93
2015-12-31 2,371.03 60.49 203.82
2015-09-30 2,330.66 48.79 191.84
2015-06-30 2,299.04 33.31 193.97
2015-03-31 2,315.67 37.34 197.54
2014-12-31 2,275.27 25.35 193.26
2014-09-30 2,283.58 -20.53 195.10
2014-06-30 2,303.57 -22.77 193.24
2014-03-31 2,268.04 -34.99 188.93
2013-12-31 2,266.90 -36.42 191.86
2013-09-30 2,173.58 10.36 202.38
2013-06-30 2,162.31 34.26 198.77
2013-03-31 2,151.58 34.79 192.77
2012-12-31 2,083.04 45.00 180.70
2012-09-30 2,117.81 45.62 168.83
2012-06-30 2,117.90 44.66 166.02
2012-03-31 2,062.96 47.66 164.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Granite Construction has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Granite Construction used its assets less efficiently than the US Construction industry average last year based on Return on Assets.
  • Granite Construction's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Granite Construction's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Granite Construction has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Granite Construction's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Granite Construction's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Granite Construction is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Granite Construction's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Granite Construction's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Granite Construction Company Filings, last reported 2 months ago.

NYSE:GVA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,397.63 382.41 585.04
2018-09-30 1,406.40 433.72 540.76
2018-06-30 1,300.99 488.69 468.50
2018-03-31 964.89 223.31 490.56
2017-12-31 992.81 224.50 550.71
2017-09-30 951.81 240.72 476.49
2017-06-30 910.08 241.91 457.04
2017-03-31 896.06 243.10 474.01
2016-12-31 922.59 244.29 502.19
2016-09-30 906.19 256.81 469.37
2016-06-30 869.02 258.80 443.39
2016-03-31 855.74 259.39 483.68
2015-12-31 870.12 259.12 503.17
2015-09-30 836.51 275.95 461.14
2015-06-30 808.28 276.26 415.62
2015-03-31 802.70 276.56 457.96
2014-12-31 817.11 276.87 466.34
2014-09-30 807.06 277.20 376.38
2014-06-30 793.54 277.50 360.22
2014-03-31 764.73 277.81 414.97
2013-12-31 786.34 278.12 441.76
2013-09-30 828.82 279.36 396.42
2013-06-30 834.17 279.67 417.83
2013-03-31 847.93 290.26 476.88
2012-12-31 871.86 290.13 483.88
2012-09-30 849.27 229.61 432.40
2012-06-30 809.13 230.24 389.03
2012-03-31 812.77 238.74 388.62
  • Granite Construction's level of debt (27.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (35.4% vs 27.4% today).
  • Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).
X
Financial health checks
We assess Granite Construction's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Granite Construction has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Granite Construction's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.11%
Current annual income from Granite Construction dividends. Estimated to be 1.66% next year.
If you bought $2,000 of Granite Construction shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Granite Construction's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Granite Construction's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Upcoming dividend payment

Purchase Granite Construction on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GVA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Construction Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GVA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.09 1.00
2022-12-31 1.91 1.00
2021-12-31 0.78 3.00
2020-12-31 0.41 3.00
2019-12-31 0.44 4.00
NYSE:GVA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-06 0.520 1.132
2018-12-13 0.520 1.238
2018-09-12 0.520 1.124
2018-06-07 0.520 1.019
2018-02-06 0.520 0.907
2017-12-07 0.520 0.802
2017-09-13 0.520 0.854
2017-06-08 0.520 1.025
2017-02-09 0.520 1.029
2016-12-08 0.520 0.926
2016-09-08 0.520 1.039
2016-06-09 0.520 1.095
2016-02-11 0.520 1.197
2015-12-14 0.520 1.313
2015-09-10 0.520 1.490
2015-06-04 0.520 1.496
2015-02-05 0.520 1.472
2014-12-19 0.520 1.437
2014-09-11 0.520 1.507
2014-06-05 0.520 1.483
2014-02-07 0.520 1.413
2013-12-19 0.520 1.524
2013-09-12 0.520 1.681
2013-06-05 0.520 1.732
2013-01-17 0.520 1.652
2012-08-09 0.520 1.742
2012-05-23 0.520 2.118
2012-01-19 0.520 1.912
2011-11-10 0.520 2.125
2011-08-11 0.520 2.561
2011-05-19 0.520 2.154
2011-01-20 0.520 1.905
2010-11-04 0.520 1.932
2010-08-05 0.520 2.237
2010-05-06 0.520 1.981
2010-01-14 0.520 1.688
2009-11-05 0.520 1.617
2009-08-06 0.520 1.690
2009-05-14 0.520 1.515
2009-03-19 0.520 1.317

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Granite Construction's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).
X
Income/ dividend checks
We assess Granite Construction's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Granite Construction afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Granite Construction has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Granite Construction's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Roberts
COMPENSATION $4,407,395
AGE 61
TENURE AS CEO 8.5 years
CEO Bio

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 since June 22, 2017. Mr. Roberts served as the Chief Operating Officer of Granite Construction Incorporated from September 1, 2009 to August 2010 and served as its Executive Vice President from September 1, 2009 to August 31, 2010, Senior Vice President from May 24, 2004 to September 2009 and Manager of Granite West Division from February 2007 to September 2009. He served as Branch Division Manager of Granite Construction Incorporated from May 24, 2004 to February 2007. He joined Granite in 1981 and served as its Vice President and Assistant Branch Division Manager from 1999 to 2004 and Regional Manager of Nevada and Utah Operations from 1995 to 1999. Mr. Roberts has been a Director of Granite Construction Incorporated since April 8, 2011. Mr. Roberts received a B.S.C.E. in 1979 and an M.S.C.E. in 1980 from the University of California, Berkeley and an MBA from the University of Southern California in 1981. He completed an Executive Program at Stanford University in 2009.

CEO Compensation
  • Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Granite Construction management team in years:

2.2
Average Tenure
54.5
Average Age
  • The tenure for the Granite Construction management team is about average.
Management Team

Jim Roberts

TITLE
President
COMPENSATION
$4M
AGE
61
TENURE
8.5 yrs

James Richards

TITLE
Senior VP & Northwest Group Manager
COMPENSATION
$2M
AGE
54
TENURE
6.2 yrs

Dale Swanberg

TITLE
Senior VP & Large Projects Group Manager
COMPENSATION
$836K
AGE
55
TENURE
2.2 yrs

Kyle Larkin

TITLE
Senior VP & California Group Manager
COMPENSATION
$692K
AGE
46
TENURE
1.4 yrs

Jigisha Desai

TITLE
Senior VP & CFO
AGE
51
TENURE
0.7 yrs

Carlos Alegre

TITLE
Senior Vice President of Operations Services
TENURE
1.2 yrs

Ron Botoff

TITLE
Vice President of Investor Relations & Government Affairs
TENURE
5.8 yrs

M. Hall

TITLE
Senior VP
TENURE
0.6 yrs

Phil DeCocco

TITLE
Senior Vice President of Human Resources
TENURE
8.2 yrs

Richard Watts

TITLE
Senior VP and Group Manager of Water & Mineral Services
AGE
55
Board of Directors Tenure

Average tenure and age of the Granite Construction board of directors in years:

2.6
Average Tenure
63
Average Age
  • The average tenure for the Granite Construction board of directors is less than 3 years, this suggests a new board.
Board of Directors

Claes Bjork

TITLE
Chairman of the Board
COMPENSATION
$206K
AGE
72
TENURE
0.8 yrs

Jim Roberts

TITLE
President
COMPENSATION
$4M
AGE
61
TENURE
7.9 yrs

David Kelsey

TITLE
Independent Director
COMPENSATION
$207K
AGE
67
TENURE
16.2 yrs

Jim Bradford

TITLE
Independent Director
COMPENSATION
$209K
AGE
71
TENURE
13.2 yrs

Gaddi Vasquez

TITLE
Independent Director
COMPENSATION
$186K
AGE
63
TENURE
6.4 yrs

Mike McNally

TITLE
Independent Director
COMPENSATION
$191K
AGE
63
TENURE
3.1 yrs

David Darnell

TITLE
Director
COMPENSATION
$210K
AGE
65
TENURE
2.1 yrs

Patricia Galloway

TITLE
Director
COMPENSATION
$210K
AGE
60
TENURE
2.1 yrs

Celeste Mastin

TITLE
Director
COMPENSATION
$206K
AGE
49
TENURE
2.1 yrs

Alan Krusi

TITLE
Director
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Nov 18 Sell James Roberts Individual 27. Nov 18 27. Nov 18 -1,100 $52.55 $-57,805
27. Nov 18 Sell James Roberts Individual 26. Nov 18 26. Nov 18 -2,200 $53.08 $-116,776
14. Aug 18 Buy Claes Bjork Individual 14. Aug 18 14. Aug 18 6,500 $44.25 $287,625
X
Management checks
We assess Granite Construction's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Granite Construction has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Now The Time To Look At Buying Granite Construction Incorporated (NYSE:GVA)?

Granite Construction Incorporated (NYSE:GVA), which is in the construction business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Granite Construction’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Did You Miss Granite Construction's 33% Share Price Gain?

Furthermore, you'd generally like to see the share price rise faster than the market. … Unfortunately for shareholders, while the Granite Construction Incorporated (NYSE:GVA) share price is up 33% in the last five years, that's less than the market return. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Why We’re Not Keen On Granite Construction Incorporated’s (NYSE:GVA) 7.1% Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St -

Despite Its High P/E Ratio, Is Granite Construction Incorporated (NYSE:GVA) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Granite Construction Incorporated's (NYSE:GVA) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

An Examination Of Granite Construction Incorporated (NYSE:GVA)

Granite Construction Incorporated (NYSE:GVA) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of GVA, it

Simply Wall St -

Granite Construction Incorporated (NYSE:GVA) Investors Are Paying Above The Intrinsic Value

I am going to run you through how I calculated the intrinsic value of Granite Construction Incorporated (NYSE:GVA). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

How Financially Strong Is Granite Construction Incorporated (NYSE:GVA)?

Granite Construction Incorporated (NYSE:GVA) is a small-cap stock with a market capitalization of US$1.8b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes.

Simply Wall St -

Have Insiders Been Buying Granite Construction Incorporated (NYSE:GVA) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Granite Construction Incorporated (NYSE:GVA). … Granite Construction Insider Transactions Over The Last Year. … That means that an insider was happy to buy shares at above the current price.

Simply Wall St -

Why Granite Construction Incorporated (NYSE:GVA) Is A Financially Healthy Company

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Granite Construction Incorporated (NYSE:GVA), with a market cap of US$2.4b, often get neglected by retail investors. … Don’t forget that this is a general and concentrated examination of Granite Construction's financial health, so you should conduct further analysis. … Check out our latest analysis for Granite Construction

Simply Wall St -

Is Granite Construction Incorporated's (NYSE:GVA) CEO Salary Justified?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jim Roberts's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Granite Construction Incorporated has a market cap of US$2.4b, and is paying total annual CEO compensation of US$4.4m

Simply Wall St -

Company Info

Description

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.

Details
Name: Granite Construction Incorporated
GVA
Exchange: NYSE
Founded: 1922
$2,186,959,600
46,690,000
Website: http://www.graniteconstruction.com
Address: Granite Construction Incorporated
585 West Beach Street,
Watsonville,
California, 95076,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GVA Common Stock New York Stock Exchange US USD 20. Apr 1990
DB GRG Common Stock Deutsche Boerse AG DE EUR 20. Apr 1990
Number of employees
Current staff
Staff numbers
2,700
Granite Construction employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 23:36
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/07
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.