Granite Construction (GVA) AI Stock Analysis

• Market Cap: $4.68B
• Dividend Yield: 0.49%
• Average Volume (3M): 523.75K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.41
• Revenue Growth: 7.18%
• EPS Growth: 77.84%
• Country: US
• Employees: 2,300
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 1.42
• Shares Outstanding: 43,786,156
• 10 Day Avg. Volume: 705,485
• 30 Day Avg. Volume: 523,747
• PEG Ratio: 0.16
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 12.02
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 9.04
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $121.50
• Price Target Upside: 13.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $118.00 ▲(10.41% Upside)

Granite Construction's strong financial performance and positive earnings call are key strengths, supported by strategic acquisitions and robust growth. However, high valuation metrics and overbought technical indicators present potential risks.

Granite Construction Business Overview & Revenue Model

Company Description

Granite Construction Incorporated (GVA) is a leading heavy civil contractor and construction materials producer, operating primarily in the United States. The company specializes in a diverse range of sectors, including transportation, water resources, and infrastructure development. Granite Construction provides core services such as road and highway construction, bridge building, utility construction, and various environmental projects, as well as producing aggregates, asphalt, and ready-mix concrete for construction and public works projects.

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, with positive cash flow management. However, rising debt levels require monitoring.

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	3.01B	3.56B
Gross Profit	602.26M	572.70M	396.40M	369.49M	305.56M	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	385.57M
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: 106.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 106.87 is above the 20-day moving average (MA) of 95.71, above the 50-day MA of 93.00, and above the 200-day MA of 87.49, indicating a bullish trend. The MACD of 2.53 indicates Negative momentum. The RSI at 77.14 is Negative, neither overbought nor oversold. The STOCH value of 93.01 is Negative, 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
DY	76 Outperform	$8.07B	35.40	19.76%	―	12.77%	1.55%
STRL	76 Outperform	$9.21B	32.91	36.72%	―	3.31%	76.94%
PRIM	75 Outperform	$6.01B	25.25	17.01%	0.27%	15.08%	55.10%
ROAD	75 Outperform	$6.26B	82.03	10.60%	―	39.18%	1.79%
GVA	72 Outperform	$4.68B	35.73	15.89%	0.49%	7.18%	77.84%
MYRG	71 Outperform	$2.87B	38.64	12.56%	―	-3.80%	62.94%
Sector *	64 Neutral	$10.66B	16.26	6.50%	2.14%	2.69%	-21.81%

Granite Construction Corporate Events

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.

The most recent analyst rating on (GVA) stock is a Sell with a $70.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.

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.

The most recent analyst rating on (GVA) stock is a Sell with a $61.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.

Granite Construction Holds Annual Meeting, Elects Directors

On June 5, 2025, Granite Construction held its Annual Meeting where 86.84% of the company’s shares were represented. During the meeting, Alan P. Krusi and Louis E. Caldera were elected to the Board of Directors for terms expiring in 2028. The stockholders also approved the compensation of the company’s named executive officers and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (GVA) stock is a Sell with a $61.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.

Granite Construction Announces COO Retirement

On May 16, 2025, Granite Construction announced that James A. Radich will retire from his role as Executive Vice President and Chief Operating Officer on July 4, 2025. This leadership change may impact the company’s operations and strategic direction as they transition to new leadership.

The most recent analyst rating on (GVA) stock is a Sell with a $61.00 price target. To see the full list of analyst forecasts on Granite Construction stock, see the GVA Stock Forecast page.