Last Updated: 18 Sep 2024
Executive Summary
Granite Construction Incorporated (GVA) is a leading infrastructure contractor and producer of building materials in the United States. The company has a strong financial position with a market capitalization of $3.39 billion, EBITDA of $225.5 million, and EPS of $2.01. Granite Construction has a trailing PE ratio of 38.64, a forward PE ratio of 13.53, and a dividend yield of 0.0067%. The stock is currently trading at $77.67, below its 52-week high of $78.62 and above its 52-week low of $33.51.
Company Overview
Granite Construction Incorporated is headquartered in Watsonville, California and has been in business for over 100 years. The company operates in two segments: Construction and Materials. The Construction segment provides a range of services, including earthwork, paving, and bridge construction. The Materials segment produces and sells aggregates, asphalt, and concrete.
Granite Construction has a strong track record of profitability and growth. The company has increased its revenue and earnings per share in each of the past five years. In 2023, the company reported revenue of $3.81 billion and EPS of $2.01.
Fundamental Analysis
Granite Construction Incorporated has a strong financial position. The company has a low debt-to-equity ratio of 0.32 and a strong cash position. The company's return on assets and return on equity are both above the industry average.
Granite Construction's valuation metrics are attractive. The company's trailing PE ratio of 38.64 is below the industry average of 42.33. The company's forward PE ratio of 13.53 is also below the industry average of 14.75.
Technical Analysis
Granite Construction Incorporated's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
Granite Construction Incorporated's stock price is likely to remain under pressure in the short term. The stock is trading below its key moving averages and its RSI is oversold. The company's earnings are also expected to decline in the near term.
Long Term Outlook
Granite Construction Incorporated's long-term outlook is more positive. The company has a strong financial position and a track record of profitability and growth. The company is also well-positioned to benefit from the infrastructure spending bill that was passed in 2021.
Analyst Recommendations
Analysts have a mixed view on Granite Construction Incorporated's stock. One analyst has a strong buy rating on the stock, two analysts have a buy rating, and one analyst has a sell rating. The average analyst target price is $75.
Conclusion
Granite Construction Incorporated is a well-positioned company with a strong financial position and a track record of profitability and growth. The company's stock is currently trading at an attractive valuation. While the stock is likely to remain under pressure in the short term, the long-term outlook is positive.
