📊 GVA Key Takeaways
Is GVA a Good Investment? Thesis Analysis
Granite Construction demonstrates solid financial health with strong free cash flow generation ($330.6M), excellent interest coverage (21.0x), and healthy ROE (16.4%), indicating a well-managed, financially stable contractor. However, stagnant revenue and net income growth (0.0% YoY) signal the company is in a mature, competitive market without organic growth momentum, limiting upside potential despite 47.3% EPS growth driven by capital-efficient share buybacks.
Why Buy GVA? Key Strengths
- Strong free cash flow generation of $330.6M with 7.5% FCF margin demonstrates operational efficiency and cash generation capability
- Excellent interest coverage of 21.0x indicates minimal financial distress risk with manageable debt levels
- Solid return on equity of 16.4% and operating cash flow of $468.9M show effective capital utilization despite thin margins typical of construction
- Healthy cash position of $529.2M provides operational flexibility and financial cushion
GVA Investment Risks to Consider
- Zero revenue growth (0.0% YoY) and flat net income indicate the company is stagnant without organic expansion in a competitive construction market
- Thin operating margin of 6.4% and modest gross margin of 16.1% leave limited pricing power and vulnerability to cost inflation
- Moderate leverage with debt-to-equity ratio of 1.14x combined with modest current ratio of 1.22x presents moderate liquidity constraints if business deteriorates
- Capital-intensive business model requiring continuous CapEx ($138.3M annually) limits cash available for shareholder returns
Key Metrics to Watch
- Revenue growth trajectory - critical to confirm if stagnation is temporary or structural market issue
- Operating margin trends - any compression would signal margin pressure from cost increases or competitive pricing
- Free cash flow sustainability - must maintain current FCF generation levels amid zero growth
- Debt levels and covenant compliance - monitor leverage metrics given moderate debt-to-equity ratio
- Backlog and order pipeline - leading indicator of future revenue potential
GVA Financial Metrics
💡 AI Analyst Insight
GRANITE CONSTRUCTION INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GVA Profitability Ratios
GVA vs Industrial Sector
How GRANITE CONSTRUCTION INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GVA Overvalued or Undervalued?
Based on fundamental analysis, GRANITE CONSTRUCTION INC has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GVA Balance Sheet & Liquidity
GVA 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: GRANITE CONSTRUCTION INC's revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.97 reflects profitable operations.
GVA Growth Metrics (YoY)
GVA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | $79.0M | $1.57 |
| Q2 2025 | $1.1B | $5.9M | $0.13 |
| Q1 2025 | $672.3M | -$31.0M | $-0.70 |
| Q2 2024 | $898.6M | $5.9M | $0.13 |
| Q1 2024 | $560.1M | -$23.0M | $-0.53 |
| Q3 2023 | $1.0B | $17.6M | $0.40 |
| Q2 2023 | $849.2M | -$8.1M | $-0.18 |
| Q1 2023 | $560.1M | -$23.0M | $-0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GVA Capital Allocation
GVA SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for GRANITE CONSTRUCTION INC (CIK: 0000861459)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 30, 2026 | 4 | xslF345X06/wk-form4_1774909854.xml | View → |
| Mar 30, 2026 | 4 | xslF345X06/wk-form4_1774907751.xml | View → |
| Mar 30, 2026 | 4 | xslF345X06/wk-form4_1774907777.xml | View → |
| Mar 25, 2026 | 4 | xslF345X06/wk-form4_1774471537.xml | View → |
| Mar 25, 2026 | 4 | xslF345X06/wk-form4_1774471502.xml | View → |
❓ Frequently Asked Questions about GVA
What is the AI rating for GVA?
GRANITE CONSTRUCTION INC (GVA) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are GVA's key strengths?
Claude: Strong free cash flow generation of $330.6M with 7.5% FCF margin demonstrates operational efficiency and cash generation capability. Excellent interest coverage of 21.0x indicates minimal financial distress risk with manageable debt levels.
What are the risks of investing in GVA?
Claude: Zero revenue growth (0.0% YoY) and flat net income indicate the company is stagnant without organic expansion in a competitive construction market. Thin operating margin of 6.4% and modest gross margin of 16.1% leave limited pricing power and vulnerability to cost inflation.
What is GVA's revenue and growth?
GRANITE CONSTRUCTION INC reported revenue of $4.4B.
Does GVA pay dividends?
GRANITE CONSTRUCTION INC pays dividends, with $22.7M distributed to shareholders in the trailing twelve months.
Where can I find GVA SEC filings?
Official SEC filings for GRANITE CONSTRUCTION INC (CIK: 0000861459) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GVA's EPS?
GRANITE CONSTRUCTION INC has a diluted EPS of $3.86.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GVA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, GRANITE CONSTRUCTION INC has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GVA stock overvalued or undervalued?
Valuation metrics for GVA: ROE of 16.4% (sector avg: 15%), net margin of 4.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy GVA stock in 2026?
Our dual AI analysis gives GRANITE CONSTRUCTION INC a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GVA's free cash flow?
GRANITE CONSTRUCTION INC's operating cash flow is $468.9M, with capital expenditures of $138.3M. FCF margin is 7.5%.
How does GVA compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.4% (avg: 10%), ROE 16.4% (avg: 15%), current ratio 1.22 (avg: 1.8).