Granite Construction (GVA) AI Stock Analysis

• Market Cap: $4.77B
• Dividend Yield: 0.48%
• Average Volume (3M): 488.71K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 1.37
• Revenue Growth: 7.18%
• EPS Growth: 77.84%
• Country: US
• Employees: 2,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.42
• Shares Outstanding: 43,786,156
• 10 Day Avg. Volume: 530,464
• 30 Day Avg. Volume: 488,712
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 9.04
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $121.00
• Price Target Upside: 11.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $121.00 ▲(11.02% Upside)

Granite Construction's strong financial performance and strategic growth initiatives, particularly through acquisitions, are the primary drivers of its stock score. While the technical analysis and earnings call provide additional support, the high valuation and increased debt levels present some risks.

Granite Construction Business Overview & Revenue Model

Company Description

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. It operates through two segments, Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public. It also focuses on water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies. The company also constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar, and power projects. The Materials segment is involved in the production of aggregates and asphalt for internal use, as well as for sale to third parties. In addition, it offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities; and provides construction management professional services. The company serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was founded in 1922 and is headquartered in Watsonville, California.

How the Company Makes Money

Granite Construction generates revenue primarily through contracts awarded for construction projects and services across various sectors. The company operates on a project-based revenue model, where it secures contracts from government agencies, municipalities, and private sector clients. Key revenue streams include heavy civil construction, which encompasses highway and road projects, and a range of specialized services in water resource management and environmental remediation. Additionally, revenue is supplemented through the sale of construction materials, including aggregates and asphalt products, which are used in its own projects and sold to third-party contractors. Strategic partnerships with governmental agencies and private firms, along with a focus on long-term contracts, contribute significantly to its earnings stability and growth potential.

Granite Construction Financial Statement Overview

Summary

Granite Construction shows strong revenue growth and improving profitability. The balance sheet is stable, but rising debt levels need monitoring. Cash flow management is healthy, supporting future investments.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03B	4.01B	3.51B	3.30B	3.50B	3.56B
Gross Profit	602.26M	572.70M	396.40M	369.49M	362.64M	344.79M
EBITDA	351.51M	351.71M	170.59M	187.01M	151.92M	-29.30M
Net Income	123.67M	126.35M	43.60M	83.30M	10.10M	-145.12M
Balance Sheet
Total Assets	2.91B	3.03B	2.81B	2.17B	2.49B	2.38B
Cash, Cash Equivalents and Short-Term Investments	574.28M	726.57M	624.76M	517.17M	585.56M	614.09M
Total Debt	838.50M	832.85M	735.09M	339.21M	372.85M	378.62M
Total Liabilities	1.87B	1.95B	1.79B	1.18B	1.50B	1.39B
Stockholders Equity	993.53M	1.02B	977.30M	953.02M	967.68M	975.66M
Cash Flow
Free Cash Flow	295.18M	319.94M	43.32M	-65.97M	-72.88M	175.21M
Operating Cash Flow	435.92M	456.34M	183.71M	55.65M	21.93M	268.46M
Investing Cash Flow	-370.60M	-228.56M	-359.29M	-11.00M	-21.48M	-41.26M
Financing Cash Flow	-14.99M	-67.12M	299.25M	-164.31M	-24.45M	-57.66M

Granite Construction Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 108.99 is above the 20-day moving average (MA) of 108.51, above the 50-day MA of 104.72, and above the 200-day MA of 90.17, indicating a bullish trend. The MACD of 1.10 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 37.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GVA.

Granite Construction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECG	78 Outperform	4.25B	25.67	33.94%	―	21.87%	18.56%
PRIM	77 Outperform	7.21B	29.47	12.83%	0.22%	15.08%	55.10%
AGX	75 Outperform	3.68B	31.07	29.81%	0.56%	29.16%	163.46%
GVA	74 Outperform	$4.77B	36.44	15.89%	0.48%	7.18%	77.84%
MYRG	71 Outperform	3.08B	41.48	5.04%	―	-3.80%	62.94%
TPC	63 Neutral	3.41B	-25.51	-11.16%	―	12.03%	-93.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Granite Construction Corporate Events

Granite Construction Appoints J. Timothy Romer as Director

On September 8, 2025, Granite Construction Incorporated appointed J. Timothy Romer as a director, who will serve on the Board’s Audit/Compliance Committee and Risk Committee. This appointment aligns with the company’s governance practices and ensures compliance with New York Stock Exchange independence requirements, potentially strengthening the company’s oversight and risk management capabilities.

Granite Construction Acquires Slats Lucas and Warren Paving

On August 5, 2025, Granite Construction Incorporated entered into an Equity Purchase Agreement to acquire all outstanding equity interests of Slats Lucas, LLC, and Warren Paving, Inc., for $540 million. This acquisition was financed through a new $600 million senior secured term loan. Additionally, Granite Construction amended and restated its credit agreement to include a $600 million revolving credit facility and a $600 million term loan, with provisions for additional borrowing capacity. These strategic financial moves are aimed at strengthening the company’s financial flexibility and operational capacity.

Granite Construction COO James Radich Retires

On July 4, 2025, James Radich retired as Executive Vice President and Chief Operating Officer of Granite Construction Incorporated. In connection with his retirement, he entered into a severance agreement which includes various compensations and benefits, and a consulting agreement to assist the company with management transition and other business matters until October 31, 2025.