Granite Construction is to continue to go out of hand in December

Today post will go over Granite Construction. I will look into why albeit cyclical Granite Construction disturbance, the long term basic indicators of the company are still strong. The company current probability of bankruptcy is under 21.0 percent. Granite Construction retains regular Real Value of $34.16 per share. The prevalent price of the corporation is $26.77. At this time the corporation appears to be undervalued. This module calculates value of Granite Construction from evaluating the corporation fundamentals such as Return On Equity of 0.0009  and Return On Asset of 0.0004  as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The entity has beta of 1.52. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Granite Construction will likely underperform. This firm dividends can provide a clue to current valuation of the stock. Granite Construction one year expected dividend income is about $0.26 per share.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Granite Construction. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Granite Construction

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Granite Construction's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Granite Construction. Your research has to be compared to or analyzed against Granite Construction's peers to derive any actionable benefits. When done correctly, Granite Construction's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Granite Construction.

How important is Granite Construction's Liquidity

Granite Construction financial leverage refers to using borrowed capital as a funding source to finance Granite Construction Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Granite Construction financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Granite Construction's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Granite Construction's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Granite Construction's total debt and its cash.

Granite Construction Gross Profit

Granite Construction Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Granite Construction previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Granite Construction Gross Profit growth over the last 10 years. Please check Granite Construction's gross profit and other fundamental indicators for more details.

Another angle On Granite Construction

Granite Construction reported last year revenue of 3.36 B. Reported Net Loss for the year was (70.19 M) with profit before taxes, overhead, and interest of 389.19 M. Granite Construction price decrease over the last few months may raise some interest from investors. The Stock closed today at a share price of 25.53 on 1264454.000 in trading volume. The company executives were not very successful in positioning the corporation components to exploit market volatility in October. However, diversifying your holdings with Granite Construction or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 5.2843. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Granite Construction Incorporat partners. Granite Construction defends 10.80  short ratio. Granite Construction is selling for under 26.77. That is 6.10% increase. Today lowest is 25.53. Granite Construction Total Debt USD is decreasing over the last 4 years. The previous year value of Granite Construction Total Debt USD was 147,259,364. Granite Construction Net Cash Flow from Operations is somewhat stable at the moment. Furthermore, Granite Construction Market Capitalization is decreasing over the last 4 years. The current value of Granite Construction Market Capitalization is 1,540,000,000.
 2015 2016 2017 2018 2019 (projected)
Granite Construction Receivables 399,892,000  492,447,000  583,756,000  473,246,000  410,683,242 
Granite Construction Inventories 55,553,000  55,245,000  62,497,000  88,623,000  71,944,316 
To conclude, our ongoing Buy/Hold/Sell recommendation on the company is Strong Sell. Granite Construction is currently undervalued with low probability of financial unrest for the next two years.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Granite Construction Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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