Granite Construction Inc (GVA) Stock Analysis
Verdict: WATCH (do not buy)
Infrastructure tailwinds are eclipsed by poor margin execution and a heavy debt load, creating a high-risk entry despite analyst upside.
Investment score: 44/100
Analysis as of
Is Granite Construction Inc stock worth reviewing? The TradeMates thesis
GVA shows strong top-line growth but suffers from negative net margins and high leverage. Recent analyst downgrades and insider selling outweigh the optimistic 2027 earnings projections.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 38/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Granite Construction Inc opportunities and risks
What speaks for GVA
- Significant 2027 EPS Inflection
What speaks against GVA
- Elevated Leverage and Interest Coverage Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| GVA | n/a | 1.1x | 32.5x | 15.6% | -3.3% | 8.9% |
| ACA | 14.5x | 2.6x | 13.4x | 23.0% | 17.9% | 2.3% |
| LGN | n/a | 2.5x | 49.3x | 18.6% | -0.7% | 3.9% |
| FLR | 23.7x | 0.4x | n/a | -1.6% | 2.3% | -0.6% |
| MWH | — | 0.0x | 0.0x | 15.8% | 0.8% | — |
| ROAD | 43.7x | 1.7x | 18.9x | 15.7% | 3.9% | 3.4% |
| Peer median | 19.1x | 1.7x | 13.4x | 15.8% | 2.3% | 2.8% |
Frequently asked questions about Granite Construction Inc (GVA)
Is GVA stock a good investment?
The TradeMates model rates Granite Construction Inc as WATCH (do not buy) with an investment score of 44/100. GVA shows strong top-line growth but suffers from negative net margins and high leverage. Recent analyst downgrades and insider selling outweigh the optimistic 2027 earnings projections. This is algorithmic model output, not personal investment advice.
Is GVA stock a buy?
The TradeMates model verdict for GVA is WATCH (do not buy) with an investment score of 44/100. Treat this as a model signal to review, not a personal buy recommendation.