Granite Construction, Inc. (GVA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Granite Construction, Inc.

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Fluor Corp.

IHS Holding Ltd.

Why is Granite Construction, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times

Low Debt Company with Strong Long Term Fundamental Strength

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%

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

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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Granite Construction, Inc. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Granite Construction, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Granite Construction, Inc.

28.28%

3.61

25.96%

S&P 500

16.49%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.60%

EBIT Growth (5y)

63.05%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

2.32

Tax Ratio

27.43%

Dividend Payout Ratio

21.61%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.63%

ROE (avg)

7.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.05

EV to EBIT

21.59

EV to EBITDA

13.23

EV to Capital Employed

3.27

EV to Sales

1.08

PEG Ratio

0.23

Dividend Yield

42.75%

ROCE (Latest)

15.16%

ROE (Latest)

16.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

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%

RAW MATERIAL COST(Y)

Fallen by -17.3% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 12 %

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 28.03 times

Here's what is working for Granite Construction, Inc.

Operating Cash Flow

Highest at USD 439.69 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 38.04 MM has Grown at 58.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Operating Profit Margin

Highest at 12 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -17.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 35.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Granite Construction, Inc.

Inventory Turnover Ratio

Lowest at 28.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio