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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Comfort Systems USA, Inc.

MYR Group, Inc.

Sterling Infrastructure, Inc.

Dycom Industries, Inc.

Exponent, Inc.

MasTec, Inc.

Granite Construction, Inc.

Fluor Corp.

Installed Building Products, Inc.

Primoris Services 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.

64.48%

3.61

25.96%

S&P 500

25.41%

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)

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

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

4.36

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

NET PROFIT(HY)

At USD 20.7 MM has Grown at 164.42%

ROCE(HY)

Highest at 18.26%

RAW MATERIAL COST(Y)

Fallen by -0.45% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.57 times

NET SALES(Q)

At USD 912.47 MM has Grown at 30.44%

-12What is not working for the Company

INTEREST(HY)

At USD 34.5 MM has Grown at 120.9%

DEBT-EQUITY RATIO (HY)

Highest at 104.74 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 26.24 times

EPS(Q)

Lowest at USD -0.96

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

Net Profit

At USD 20.7 MM has Grown at 164.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 912.47 MM has Grown at 30.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debtors Turnover Ratio

Highest at 5.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.45% (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

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

Interest

At USD 34.5 MM has Grown at 120.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 104.74 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

EPS

Lowest at USD -0.96

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 26.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio