ScoreWhy is Granite Construction, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times
2
Low Debt Company with Strong Long Term Fundamental Strength
3
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 439.69 MM
- NET PROFIT(HY) At USD 38.04 MM has Grown at 58.07%
- ROCE(HY) Highest at 15.89%
4
With ROCE of 15.16%, it has a fair valuation with a 3.27 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 18.59%, its profits have risen by 107.2% ; the PEG ratio of the company is 0.2
5
Consistent Returns over the last 3 years
- Along with generating 18.59% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Granite Construction, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Granite Construction, Inc.
30.28%
3.61
25.96%
S&P 500
21.51%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.43%
EBIT Growth (5y)
100.92%
EBIT to Interest (avg)
2.40
Debt to EBITDA (avg)
0.62
Net Debt to Equity (avg)
0.34
Sales to Capital Employed (avg)
2.17
Tax Ratio
27.43%
Dividend Payout Ratio
14.32%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
5.63%
ROE (avg)
7.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
4.36
EV to EBIT
22.54
EV to EBITDA
13.89
EV to Capital Employed
3.03
EV to Sales
1.34
PEG Ratio
0.59
Dividend Yield
0.44%
ROCE (Latest)
13.44%
ROE (Latest)
18.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 605.02 MM
NET PROFIT(HY)
At USD 60.82 MM has Grown at 59.88%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
CASH AND EQV(HY)
Highest at USD 1,359.97 MM
NET SALES(Q)
Highest at USD 1,455.87 MM
-34What is not working for the Company
NET PROFIT(Q)
At USD 0 MM has Fallen at -100%
ROCE(HY)
Lowest at -18.17%
RAW MATERIAL COST(Y)
Grown by 7.67% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 91.31 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 27.16 times
INTEREST(Q)
Highest at USD 21.76 MM
PRE-TAX PROFIT(Q)
Lowest at USD -239.34 MM
EPS(Q)
Lowest at USD -6.36
Here's what is working for Granite Construction, Inc.
Operating Cash Flow
Highest at USD 605.02 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,455.87 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 1,455.87 MM has Grown at 29.3%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 1,359.97 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Granite Construction, Inc.
Pre-Tax Profit
At USD -239.34 MM has Fallen at -322.52%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 0 MM has Fallen at -100%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 21.76 MM has Grown at 33.24%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 21.76 MM
in the last five periods and Increased by 33.24% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD -239.34 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
EPS
Lowest at USD -6.36
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 91.31 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 27.16 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 7.67% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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