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Granite Construction (GVA)
NYSE:GVA
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Granite Construction
(NYSE:GVA)
72Outperform
Granite Construction (GVA) vs. S&P 500 (SPY)
Market Cap
$3.55B
Dividend Yield0.63%
Average Volume (3M)713.39K
Price to Earnings (P/E)35.7
Beta (1Y)1.35
Revenue Growth11.42%
EPS Growth247.33%
CountryUS
Employees2,300
SectorIndustrials
Sector Strength81
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.77
Shares Outstanding43,737,843
10 Day Avg. Volume643,458
30 Day Avg. Volume713,387
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.05
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.53
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$108.00Price Target Upside30.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Granite Construction Business Overview & Revenue Model
Company DescriptionGranite Construction Incorporated (GVA) is a leading infrastructure company based in the United States. It operates in the heavy civil construction and environmental sectors, providing services such as construction of roads, highways, tunnels, bridges, airports, and other infrastructure projects. The company also engages in site preparation, mining, and construction management services, aiming to deliver integrated infrastructure solutions to both public and private sector clients.
How the Company Makes MoneyGranite Construction makes money primarily through its construction and construction materials segments. The construction segment generates revenue by securing contracts for infrastructure projects, often through competitive bidding processes. These projects can be long-term and involve complex engineering and construction work, contributing significantly to the company's earnings. The construction materials segment involves the production and sale of aggregates, asphalt, and other materials, which supports its construction projects and also serves external customers. Key revenue streams include government infrastructure contracts, commercial building projects, and private sector developments. Partnerships with government agencies, local municipalities, and private developers play a crucial role in securing continuous project opportunities and revenue growth for the company.
Granite Construction Financial Statement Overview
Summary
Granite Construction demonstrates strong revenue growth, improved profitability, and effective cash flow management. However, the rising debt levels pose potential leverage risks.Income Statement
Granite Construction has demonstrated strong revenue growth, with a notable increase in Total Revenue from $3.01 billion in 2021 to $4.03 billion in TTM (Trailing-Twelve-Months) 2025. The Gross Profit Margin has improved, indicating better cost control and efficiency. The Net Profit Margin is positive and has shown a consistent upward trend, which highlights effective profitability management. EBIT and EBITDA margins have also seen positive growth, reflecting enhanced operational efficiency and profitability.80
Positive
Balance Sheet
The company maintains a stable balance sheet with a reasonable Debt-to-Equity ratio, indicating a balanced capital structure. The Return on Equity (ROE) is improving, showcasing effective utilization of shareholder funds. The Equity Ratio demonstrates a solid proportion of assets financed by equity, suggesting financial stability. However, the increase in total debt over the years should be monitored for potential leverage risks.70
Positive
Cash Flow
Granite Construction exhibits healthy cash flow management, with positive Free Cash Flow and Operating Cash Flow. The Free Cash Flow to Net Income Ratio indicates strong cash generation relative to net income. The Operating Cash Flow to Net Income Ratio signifies effective cash flow conversion from operations. Free Cash Flow growth remains positive, supporting future investment opportunities, despite minor fluctuations in capital expenditures.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.01B | 3.51B | 3.30B | 3.01B | 3.56B | Gross Profit |
| 572.70M | 396.40M | 369.49M | 305.56M | 344.79M | EBIT |
| 207.36M | 80.06M | 85.38M | -23.00M | 7.55M | EBITDA |
| 351.71M | 170.59M | 153.53M | 67.33M | -29.30M | Net Income Common Stockholders |
| 126.35M | 43.60M | 83.30M | -8.26M | -166.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 726.57M | 624.76M | 517.17M | 585.56M | 624.93M | Total Assets |
| 3.03B | 2.81B | 2.17B | 2.49B | 2.38B | Total Debt |
| 832.85M | 735.09M | 320.55M | 372.85M | 385.57M | Net Debt |
| 254.52M | 317.42M | 26.56M | -22.80M | -50.57M | Total Liabilities |
| 1.95B | 1.79B | 1.18B | 1.50B | 1.39B | Stockholders Equity |
| 1.02B | 977.30M | 953.02M | 967.68M | 975.66M |
| Cash Flow | Free Cash Flow | |||
| 319.94M | 43.32M | -65.97M | -72.88M | 175.21M | Operating Cash Flow |
| 456.34M | 183.71M | 55.65M | 21.93M | 268.46M | Investing Cash Flow |
| -228.56M | -359.29M | -11.00M | -21.48M | -41.26M | Financing Cash Flow |
| -67.12M | 299.25M | -164.31M | -24.45M | -57.66M |
Granite Construction Technical Analysis
Positive
82.99
Price Trends
77.18
Positive
83.33
Negative
81.76
Positive
Market Momentum
1.21
Negative
63.67
Neutral
78.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVA, the sentiment is Positive. The current price of 82.99 is above the 20-day moving average (MA) of 78.14, above the 50-day MA of 77.18, and above the 200-day MA of 81.76, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GVA.
Granite Construction Risk Analysis
Granite Construction disclosed 53 risk factors in its most recent earnings report. Granite Construction reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Granite Construction Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.10B | 85.49 | 8.41% | ― | 22.91% | -1.39% | |
78 Outperform | $3.57B | 19.97 | 15.30% | 0.42% | 12.45% | 42.45% | |
76 Outperform | $5.23B | 20.09 | 36.67% | ― | 4.84% | 77.84% | |
72 Outperform | $3.55B | 35.67 | 12.75% | 0.63% | 11.42% | 247.33% | |
72 Outperform | $2.37B | 70.21 | 5.71% | ― | -7.33% | -57.86% | |
70 Outperform | $5.29B | 23.23 | 20.35% | ― | 12.61% | 7.43% | |
64 Neutral | $4.25B | 11.72 | 5.24% | 249.79% | 4.07% | -9.45% |
* Industrials Sector Average
Performance Comparison
GVA
Granite Construction
82.18
23.08
39.05%
DY
Dycom
183.91
36.59
24.84%
MYRG
MYR Group
152.90
-0.69
-0.45%
PRIM
Primoris Services
65.10
17.65
37.20%
STRL
Sterling Construction
171.95
49.95
40.94%
ROAD
Construction Partners
91.16
37.38
69.51%
Granite Construction Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 2.09%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
Granite has had a strong start to 2025 with record CAP levels, significant growth in the Materials segment, and improved execution in the Construction segment. However, weather impacts and ongoing tariff concerns present challenges.Q1-2025 Updates
Positive Updates
Strong Start to 2025
Granite's performance in the first quarter of 2025 is in line with expectations, with an increase in CAP to a record $5.7 billion and a strong bidding environment.
Materials Segment Growth
Significant investments in the Materials segment have increased reserves by 56% to 1.6 billion tons. The company added 11 new aggregate crushing plants and 10 new asphalt plants over three years, improving margins.
Increase in Construction Segment Gross Profit
Construction segment gross profit improved by $29 million to $85 million, with a gross profit margin of 14%, driven by improved execution.
Positive Financial Performance
Revenue increased by $28 million or 4%, gross profit increased by $30 million or 54%, and adjusted EBITDA improved by $14 million.
Negative Updates
Weather Impacts
Wet weather in March affected project progression and revenue recognition, particularly in Western markets.
Tariff Concerns
While not significantly impacted yet, tariffs remain a concern for future operations and pricing strategies.
Company Guidance
During the Granite 2025 First Quarter Conference Call, the company reaffirmed its guidance and financial targets for 2025 and 2027, despite uncertainties in the macroeconomic environment. The guidance for 2025 includes expected revenue between $4.2 billion and $4.4 billion, with an adjusted EBITDA margin of 11% to 12%. The company reported a strong start to the year with a revenue increase of $28 million or 4%, a gross profit increase of $30 million or 54%, and an adjusted EBITDA improvement of $14 million. The Construction segment showed a revenue increase of $19 million, reaching $615 million, and a gross profit margin increase to 14%. The Materials segment saw a revenue increase of $8 million, with expectations for further revenue and profit improvements throughout the year. The company also aims for operating cash flow to be 9% of revenue for 2025 and plans to complete two to three M&A deals within the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.