Granite Construction Inc

Industrials
Military/Government/Technical
www.graniteconstruction.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.29B
PE 40
Debt $739.66M
Cash $462.29M
EV $4.57B
FCF $293.47M

Earnings

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Sales & Net Margins

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Earnings	$106.57M
EBIT	$167.45M
ROE	10%
ROA	5%
FCF	$293.47M
Equity	$1.07B
Growth Stability	-5K%
PE	40.29
PEG	1.04
PB	4.01
P/FCF	14.63
P/S	1.08
Price/Cash	0.11
Debt/Equity	0.69
Debt/FCF	2.52
Net Margins	3%
Gross Margins	13%
Op. Margins	4%
Earnings CAGR	-2%
Sales Growth YoY	14%
Sales Growth QoQ	18%
Sales CAGR	4%
FCF CAGR	6%
Equity CAGR	1%
Earnings Stability	0.01
Earnings Growth YoY	37%
Earnings Growth QoQ	114%
Earnings CAGR 5Y	39%

Sales CAGR 5Y	1%
FCF CAGR 5Y	12%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	13%
Equity CAGR 3Y	3%
Market Cap	$4.29B
Revenue	$3.96B
Dividend Yield	1%
Payout Ratio	21%
Assets	$3.13B
Total Debt	$739.66M
Cash	$462.29M
Shares Outstanding	43.7M
EV	4.57B
Earnings Score	6%
Moat Score	74%
Safety Score	60%
Final Score	47%
Working Capital	649.28M
Current Ratio	1.56
Gross Profit	$516.26M
Shares Growth 3y	-1%
Equity Growth QoQ	8%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Granite Construction Inc delivers infrastructure solutions for public and private clients in North America. It primarily focuses on heavy civil infrastructure projects, including roads, highways, tunnels and other infrastructure-related projects, transit facilities, airports and bridges. In addition, the company performs site preparation and infrastructure services for residential development, energy progress and other facilities. Its operating segment includes Construction and Materials. The company generates maximum revenue from Construction segment.

SEC Filings

Direct access to Granite Construction Inc (GVA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Granite Construction Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Granite Construction Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability 1%

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Granite Construction Inc Discounted Cash Flow

Fully customizable DCF calculator online for Granite Construction Inc.

Years

Calculation mode

= $4.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$293M	$312M	$333M	$354M	$377M	$402M	$428M	$455M	$485M	$516M	$550M	$5.5B
DCF		$284M	$275M	$266M	$258M	$249M	$241M	$234M	$226M	$219M	$212M	$2.1B
Value	$4.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	1%	3%	2%	2%	0%	-2%	-5%	0%	2%	1%	3%
ROA	-	7%	6%	6%	3%	-3%	-7%	0%	4%	3%	5%
ROE	-	7%	6%	7%	0%	-5%	-17%	0%	8%	3%	10%

Bad Net Margins (2.8%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	11.41	-13.71	2.86	-17.39	80.82	1.98	-4.78	-4.39	16.03	2.52
Debt over Equity	0.33	0.3	0.26	0.23	0.31	0.32	0.35	0.35	0.29	0.68	0.69
Growth Stability	-	-	-	100%	1%	-142%	-5K%	-	-	-	-5K%

Neutral Debt/FCF ratio (2.52)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.69)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-5K%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	4%	6%	19%	11%	4%	3%	-16%	10%	6%	1%
Earnings YoY growth	-	139%	-6%	21%	-99%	-10K%	176%	-101%	3K%	-62%	39%
Equity YoY growth	-	6%	6%	8%	41%	-16%	-16%	0%	-1%	4%	-1%
FCF YoY growth	-	-8K%	-178%	-540%	-131%	-119%	4K%	-142%	-9%	-166%	12%