Granite Construction Incorporated (GVA)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Granite Construction Incorporated trades at USD125.63, which is 16% below the USD145.15 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 41 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 33.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Granite Construction Incorporated
Granite Construction Incorporated provides infrastructure solutions for public and private clients in the United States. It operates through 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 and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure and site development, mining, public safety, tunnel, solar, battery storage, and power related projects. The Materials segment produces and delivers aggregates, asphalt concrete, liquid asphalt, and recycled materials for internal use in construction projects and sale to third parties. It also provides site preparation, mining, and infrastructure services for railways, residential development, energy development, and commercial and industrial sites; produces construction materials; and provides construction management professional services, as well as owns and leases aggregate reserves and processing plants. 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 incorporated in 1922 and is headquartered in Watsonville, California.
GVA passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Israel Englander, MILLENNIUM MANAGEMENT LLC$138.99M · 0.1% of book
- Steve Cohen, Point72 Asset Management, L.P.$45.55M · 0.1% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$43.43M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$43.02M · 0.0% of book
- Ken Fisher, Fisher Asset Management, LLC$40.56M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Granite Construction Incorporated (GVA) undervalued?
Against our discounted cash flow estimate of USD145.15, GVA at USD125.63 is 16% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own GVA?
13 of the institutions we track reported a position in GVA in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GVA's P/E ratio?
GVA trades at 33.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for GVA, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.