GVA
Granite Construction Inc.
Industrial/Transportation
09/06/2024
Presented
| Date | 09/03/2024 |
| Price | $72.70 |
| Market Cap | $3.18B |
| Ent Value | $3.77B |
| P/E Ratio | 46.75x |
| Book Value | $21.33 |
| Div Yield | 0.72% |
| Shares O/S | 43.69M |
| Ave Daily Vol | 705,523 |
| Short Int | 18.81% |
Current
| Price | $81.38 |
| Market Cap | $3.56B |
| Granite Construction, Inc. is a holding company. It operates as an infrastructure contractor and a construction materials company in the United States. It operates through the following segments: Construction and Materials. The Construction segment is involved 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. It also focuses on water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies. The company also constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar, and power projects. The Materials segment is involved in the production of aggregates and asphalt for internal use, as well as for sale to third parties. In addition, it offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, and provides construction management professional services. 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. The company was founded in 1922 and is headquartered in Watsonville, CA. |
Publicly traded companies mentioned herein: EMCOR Group Inc (EME), Granite Construction Inc (GVA), Knife River Corp (KNF)
Highlights
The presenter is long shares of Granite Construction Inc (GVA), a vertically integrated construction services and construction materials company with home markets in CA and TX along with presence elsewhere in the US. GVA’s business mix skews toward Construction, with its 2024 revenue guidance of $3.9B – $4B breaking out to $3.3 – 3.4B from Construction and $600MM from Materials. His bullish outlook stems from the strategic shifts in recent years enacted by the new management team, which has transformed GVA’s portfolio in an underappreciated manner and meaningfully improved the margin profile, with material runway remaining. As the company starts releasing new targets in the coming months, he thinks the stock can rerate in line with peers, driving strong upside from the current $73 share price.
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