Granite Construction Offers Compelling Upside Thanks To Growth Plans

Summary

  • Granite Construction continues to deliver strong growth and remains attractively valued, outperforming the S&P 500 since my initial 'buy' rating.
  • Recent results show revenue growth across both segments, with private sector strength and successful acquisitions fueling expansion despite a slight dip in profitability.
  • Management projects robust organic growth, ongoing acquisitions, and margin improvements, targeting significant EBITDA and cash flow increases by 2027.
  • Given its low valuation, solid fundamentals, and growth prospects, I maintain a confident 'buy' rating, expecting annualized returns above the market average.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

construction is dependent on the transport and movement of materials. hand dump for park construction. loader and container truck during park construction. piles of granite aggregates

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One company that continues to impress me is Granite Construction (NYSE:GVA). In case you aren't familiar with the business, it operates in the construction industry. Specifically, it offers infrastructure solutions for public and private clients. And for

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This article was written by

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Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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