Granite Construction (GVA) AI Stock Analysis

• Market Cap: $4.06B
• Dividend Yield: 0.56%
• Average Volume (3M): 503.89K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 1.31
• Revenue Growth: 11.42%
• EPS Growth: 247.33%
• Country: US
• Employees: 2,300
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): -0.77
• Shares Outstanding: 43,737,843
• 10 Day Avg. Volume: 593,929
• 30 Day Avg. Volume: 503,888
• PEG Ratio: -0.02
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.65
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 1.18
• 1Y Price Target: $108.00
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $101.00 ▲(8.74%Upside)

Granite Construction's strong financial performance and positive market momentum are significant strengths, supporting the stock's attractiveness. However, the high P/E ratio suggests potential overvaluation. The company's strategic focus and positive earnings guidance further bolster its outlook, despite some external challenges.

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 makes money through a diversified revenue model that includes income from construction services and the sale of construction materials. The company's construction services revenue is primarily driven by large-scale infrastructure projects, such as highways, bridges, and airports, often funded by government contracts. Revenue from construction materials stems from the production and sale of aggregates, asphalt, and concrete to both internal projects and external customers. Granite Construction's earnings are also influenced by strategic partnerships and joint ventures, which enable the company to undertake large, complex projects and expand its market reach.

Granite Construction Financial Statement Overview

Summary

Granite Construction's financial performance is strong, with impressive revenue growth and improved profitability margins. The company has a stable balance sheet, though rising debt levels pose potential risks. Cash flow management is effective, 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	3.01B	3.56B
Gross Profit	602.26M	572.70M	396.40M	369.49M	305.56M	344.79M
EBITDA	371.06M	351.71M	170.59M	153.53M	67.33M	-29.30M
Net Income	123.67M	126.35M	43.60M	83.30M	-8.26M	-166.18M
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	624.93M
Total Debt	838.50M	832.85M	735.09M	320.55M	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	323.74M	319.94M	43.32M	-65.97M	-72.88M	175.21M
Operating Cash Flow	432.27M	456.34M	183.71M	55.65M	21.93M	268.46M
Investing Cash Flow	-363.60M	-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: 92.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 92.88 is above the 20-day moving average (MA) of 90.16, above the 50-day MA of 85.93, and above the 200-day MA of 85.21, indicating a bullish trend. The MACD of 1.44 indicates Positive momentum. The RSI at 65.99 is Neutral, neither overbought nor oversold. The STOCH value of 80.01 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
ROAD	81 Outperform	$5.94B	91.09	9.21%	―	31.49%	-0.13%
STRL	77 Outperform	$7.04B	27.06	36.67%	―	4.84%	77.84%
DY	76 Outperform	$7.11B	31.16	19.76%	―	12.77%	1.55%
GVA	75 Outperform	$4.06B	40.83	12.75%	0.56%	11.42%	247.33%
MYRG	74 Outperform	$2.83B	83.85	5.71%	―	-7.33%	-57.86%
PRIM	74 Outperform	$4.32B	21.23	15.30%	0.40%	12.45%	42.45%
Sector *	71 Outperform	¥255.65B	12.95	8.49%	3.10%	6.31%	12.92%

Granite Construction Corporate Events

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.