NYSE:GVA

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Executive Summary

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


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

-4.8%

GVA

-4.6%

US Construction

-5.3%

US Market


1 Year Return

-23.5%

GVA

1.1%

US Construction

10.4%

US Market

Return vs Industry: GVA underperformed the US Construction industry which returned 1.2% over the past year.

Return vs Market: GVA underperformed the US Market which returned 12% over the past year.


Shareholder returns

GVAIndustryMarket
7 Day-4.8%-4.6%-5.3%
30 Day9.0%7.1%-2.1%
90 Day13.9%18.6%1.7%
1 Year-21.2%-23.5%1.7%1.1%12.9%10.4%
3 Year-68.3%-69.9%3.7%1.5%34.3%25.4%
5 Year-45.2%-49.0%46.7%41.3%73.7%54.3%

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

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 ($19.31) is trading below our estimate of fair value ($56.53)

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 US 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 (0.7x) 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 2 analysts?

109.5%

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 (2.2%).

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 (10% 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?

-253.5%

Last years 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: Insufficient data to determine if GVA's year-on-year earnings growth rate was positive over the past 5 years.

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 (12%).


Return on Equity

High ROE: GVA has a negative Return on Equity (-7.34%), as it is currently unprofitable.


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.

Debt Coverage: GVA's debt is not well covered by operating cash flow (11%).

Interest Coverage: Insufficient data to determine if GVA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GVA's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: GVA's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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 (23.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Kyle Larkin (49 yo)

no data

Tenure

US$871,188

Compensation

Mr. Kyle T. Larkin serves as President and Principal Executive Officer of Granite Construction Incorporated since September 22, 2020. Mr. Larkin had been Executive Vice President and Chief Operating Office ...


CEO Compensation Analysis

Compensation vs Market: Kyle's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD2.96M).

Compensation vs Earnings: Kyle's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kyle Larkin
President & Principal Executive Officerno dataUS$871.19k0.062%
$ 539.5k
Jigisha Desai
Senior VP & CFO2.25yrsUS$1.06m0.088%
$ 769.3k
James Roberts
Chief Executive Officer Emeritusno dataUS$4.13m0.52%
$ 4.5m
James Richards
Senior VP & Group Manager of Heavy Civil7.75yrsUS$1.36m0.091%
$ 791.4k
Elizabeth Curtis
VP of Investor Relations & Chief Accounting Officerno datano data0.019%
$ 165.3k
M. Hall
Senior VP2.17yrsno datano data
Tim Gruber
Interim Vice President of Human Resources0.75yrno datano data
Matthew Tyler
Senior VP & Group Manager of Federal Division5.75yrsno datano data
Richard Rantala
Senior Vice President of Business Development5.25yrsno datano data
Carlos Alegre
Senior Vice President of Operations Servicesno datano datano data
Michael Tatusko
Senior VP & Group Manager of Northwest Group1.75yrsno data0.026%
$ 222.9k
James Radich
Senior VP & Group Manager of California Group0.75yrno data0.018%
$ 155.4k

2.2yrs

Average Tenure

55yo

Average Age

Experienced Management: GVA's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Kelsey
Independent Director17.75yrsUS$240.11k0.073%
$ 638.4k
Claes Bjork
Independent Chairman of the Board2.25yrsUS$337.80k0.15%
$ 1.3m
David Darnell
Independent Director3.58yrsUS$215.99k0.0057%
$ 49.9k
Patricia Galloway
Independent Director3.58yrsUS$215.99k0.011%
$ 97.4k
Jeffrey Lyash
Independent Director2.25yrsUS$172.36k0.0098%
$ 85.7k
Alan Krusi
Independent Director2.25yrsUS$165.08k0.010%
$ 86.6k
Celeste Mastin
Independent Director3.58yrsUS$216.99k0.0057%
$ 49.9k
Michael McNally
Independent Director4.58yrsUS$228.09k0.0070%
$ 61.2k
Gaddi Vasquez
Independent Director8yrsUS$223.23k0.0043%
$ 37.3k
Molly Campbell
Director1.25yrsno data0.0057%
$ 49.7k

3.6yrs

Average Tenure

65yo

Average Age

Experienced Board: GVA's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$870.057m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GVANYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1990
GRGDB (Deutsche Boerse AG)YesCommon StockDEEURApr 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 Mat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:35
End of Day Share Price2020/10/30 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.