Granite Construction Incorporated

$ 146.67 2.32 %

Granite Construction Incorporated is a leading U.S. company that functions as both an infrastructure contractor and a producer of essential construction materials. Its activities are primarily divided into two key segments: Construction and Materials. The Construction division is responsible for developing and restoring public infrastructure, encompassing roadways, bridges, rail systems, airports, marine facilities, dams, reservoirs, and aqueducts, alongside general site development. This segment also specializes in water infrastructure projects for a diverse clientele, including municipal bodies, commercial water suppliers, industrial facilities, and energy companies. Furthermore, it undertakes complex ventures such as mining operations, public safety installations, tunnel construction, and both solar and conventional power projects. The Materials segment focuses on manufacturing aggregates and asphalt, supplying these critical components for both the company's internal construction needs and for external sale to third parties. Additionally, this division provides various services including site preparation, mining, and infrastructure development for residential, energy, commercial, and industrial sites, alongside professional construction management expertise. Granite Construction serves an extensive range of clients, from federal and state government agencies, transportation authorities, and local public works departments, to educational institutions, property developers, utility providers, other contractors, landscapers, manufacturers reliant on aggregate materials, retailers, homeowners, agricultural businesses, brokers, and private owners of industrial, commercial, and residential properties. Established in 1922, Granite Construction Incorporated maintains its headquarters in Watsonville, California.

CEO: Kyle T. Larkin - https://www.graniteconstruction.com

Price objectif

$152.33 3.86 %

Recommandation

Buy

DCF

$ 5.71

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GVA vs S&P500

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Quick ratio

0.97

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

39.96

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

3.67

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

16.70 %

reflects reasonable profitability, showing good use of equity.

ROIC

7.73 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

9.19

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

1.35

means it relies more on debt, which can increase financial risk.

Free cash flow per share

6.94

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

12.28 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
3.26 indicates good financial health and low risk of bankruptcy
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Cash / Debt

Cash Ratio
0.18 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.37 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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