(GVA) Granite Construction - Overview
Sector: Industrials | Industry: Engineering & Construction | Exchange: NYSE (USA) | Market Cap: 5.719m USD | Total Return: 42.8% in 12m
Avg Turnover: 96.8M
EPS Trend: 98.5%
Qual. Beats: 2
Rev. Trend: 98.6%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
Confidence
Granite Construction Incorporated (GVA) is a vertically integrated infrastructure firm operating through two primary segments: Construction and Materials. The Construction division manages large-scale civil engineering projects including transportation networks, water infrastructure, and renewable energy sites. The Materials division produces and sells essential inputs such as aggregates and asphalt, supporting both internal projects and third-party customers.
The company operates within the heavy civil construction sector, which is characterized by high barriers to entry due to the capital-intensive nature of equipment and aggregate reserve ownership. Its business model benefits from vertical integration, as owning raw material sources helps mitigate supply chain volatility and improves profit margins on competitive public-sector bids. Historically, this industry relies heavily on federal and state infrastructure spending cycles.
Investors can evaluate GVA’s project backlog and material pricing trends on ValueRay to better understand its growth trajectory. Headquartered in California since 1922, the company serves a diverse client base ranging from federal agencies to private industrial developers.
- Increased federal infrastructure spending through the IIJA boosts long-term project backlog
- Rising asphalt and aggregate production costs impact Materials segment profit margins
- Public sector transportation budget allocations drive core civil construction revenue
- Vertical integration of aggregate supply chains mitigates raw material price volatility
- Shift toward higher-margin smaller projects reduces risk from large complex contracts
| Net Income: 185.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -2.16 > 1.0 |
| NWC/Revenue: 2.71% < 20% (prev 13.52%; Δ -10.81% < -1%) |
| CFO/TA 0.11 > 3% & CFO 434.4m > Net Income 185.0m |
| Net Debt (1.20b) to EBITDA (482.0m): 2.50 < 3 |
| Current Ratio: 1.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (43.5m) vs 12m ago 0.15% < -2% |
| Gross Margin: 15.90% > 18% (prev 0.15%; Δ 1.57k% > 0.5%) |
| Asset Turnover: 138.7% > 50% (prev 138.8%; Δ -0.09% > 0%) |
| Interest Coverage Ratio: 5.49 > 6 (EBITDA TTM 482.0m / Interest Expense TTM 55.8m) |
| A: 0.03 (Total Current Assets 1.60b - Total Current Liabilities 1.48b) / Total Assets 3.78b |
| B: 0.19 (Retained Earnings 727.2m / Total Assets 3.78b) |
| C: 0.09 (EBIT TTM 306.2m / Avg Total Assets 3.34b) |
| D: 0.27 (Book Value of Equity 730.6m / Total Liabilities 2.70b) |
| Altman-Z'' = 1.75 = BBB |
| DSRI: 0.74 (Receivables 636.5m/745.9m, Revenue 4.64b/4.03b) |
| GMI: 0.94 (GM 15.90% / 14.93%) |
| AQI: 1.02 (AQ_t 0.21 / AQ_t-1 0.20) |
| SGI: 1.15 (Revenue 4.64b / 4.03b) |
| TATA: -0.07 (NI 185.0m - CFO 434.4m) / TA 3.78b) |
| Beneish M = -3.24 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 129.95 with a total of 379,888 shares traded.
Over the past week, the price has changed by -6.21%,
over one month by +5.33%,
over three months by -4.48% and
over the past year by +42.80%.
Granite Construction has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy GVA.
- StrongBuy: 2
- Buy: 0
- Hold: 0
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 166.5 | 28.1% |
P/E Trailing = 36.116
P/E Forward = 21.1416
P/S = 1.2334
P/B = 5.6143
P/EG = 1.9568
Revenue TTM = 4.64b USD
EBIT TTM = 306.2m USD
EBITDA TTM = 482.0m USD
Long Term Debt = 861.2m USD (from longTermDebt, last quarter)
Short Term Debt = 379.8m USD (from shortTermDebt, last quarter)
Debt = 1.52b USD (from shortLongTermDebtTotal, last quarter) + Leases 155.0m
Net Debt = 1.20b USD (calculated: Debt 1.52b - CCE 314.9m)
Enterprise Value = 6.92b USD (5.72b + Debt 1.52b - CCE 314.9m)
Interest Coverage Ratio = 5.49 (Ebit TTM 306.2m / Interest Expense TTM 55.8m)
EV/FCF = 22.91x (Enterprise Value 6.92b / FCF TTM 302.2m)
FCF Yield = 4.36% (FCF TTM 302.2m / Enterprise Value 6.92b)
FCF Margin = 6.52% (FCF TTM 302.2m / Revenue TTM 4.64b)
Net Margin = 3.99% (Net Income TTM 185.0m / Revenue TTM 4.64b)
Gross Margin = 15.90% ((Revenue TTM 4.64b - Cost of Revenue TTM 3.90b) / Revenue TTM)
Gross Margin QoQ = 12.04% (prev 14.39%)
Tobins Q-Ratio = 1.83 (Enterprise Value 6.92b / Total Assets 3.78b)
Interest Expense / Debt = 3.67% (Interest Expense 55.8m / Debt 1.52b)
Taxrate = 23.71% (68.5m / 288.8m)
NOPAT = 233.6m (EBIT 306.2m * (1 - 23.71%))
Current Ratio = 1.09 (Total Current Assets 1.60b / Total Current Liabilities 1.48b)
Debt / Equity = 1.47 (Debt 1.52b / totalStockholderEquity, last quarter 1.03b)
Debt / EBITDA = 2.50 (Net Debt 1.20b / EBITDA 482.0m)
Debt / FCF = 3.98 (Net Debt 1.20b / FCF TTM 302.2m)
Total Stockholder Equity = 1.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.53% (Net Income 185.0m / Total Assets 3.78b)
RoE = 16.70% (Net Income TTM 185.0m / Total Stockholder Equity 1.11b)
RoCE = 15.55% (EBIT 306.2m / Capital Employed (Equity 1.11b + L.T.Debt 861.2m))
RoIC = 8.72% (NOPAT 233.6m / Invested Capital 2.68b)
WACC = 8.17% (E(5.72b)/V(7.24b) * Re(9.59%) + D(1.52b)/V(7.24b) * Rd(3.67%) * (1-Tc(0.24)))
Discount Rate = 9.59% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -2.22 | Cagr: -8.84%
[DCF] Terminal Value 75.75% ; FCFF base≈299.4m ; Y1≈306.6m ; Y5≈337.7m
[DCF] Fair Price = 92.06 (EV 5.23b - Net Debt 1.20b = Equity 4.03b / Shares 43.7m; r=8.35% [WACC [floored]]; 5y FCF grow 2.38% → 2.50% )
EPS Correlation: 98.48 | EPS CAGR: 39.90% | SUE: 2.59 | # QB: 2
Revenue Correlation: 98.61 | Revenue CAGR: 12.57% | SUE: 3.48 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.34 | Chg30d=+8.33% | Revisions=+14% | Analysts=3
EPS next Quarter (2026-09-30): EPS=3.17 | Chg30d=+7.16% | Revisions=+43% | Analysts=3
EPS current Year (2026-12-31): EPS=6.61 | Chg30d=+12.87% | Revisions=+50% | GrowthEPS=+8.9% | GrowthRev=+19.1%
EPS next Year (2027-12-31): EPS=7.32 | Chg30d=+5.93% | Revisions=+25% | GrowthEPS=+10.7% | GrowthRev=+6.8%
[Analyst] Revisions Ratio: +50%