Granite Construction Stock Fair Value Calculation – Granite Construction Expands to Canada with Acquisition of Coast Mountain Resources

Trending News ☀️

Granite Construction ($NYSE:GVA), a leading national civil construction and construction materials supplier, recently announced the acquisition of Coast Mountain Resources, a Canadian-based provider of earthmoving and infrastructure services. This marks the first time that Granite has expanded its operations outside of the United States. Coast Mountain Resources is based in British Columbia, Canada and provides a variety of services, including road and bridge construction, land development, aggregate production, earthmoving, and utilities installation. Granite Construction is a publicly traded company listed on the New York Stock Exchange (NYSE: GVA).

It is a leader in heavy civil construction in the United States and provides a broad range of construction services and products, including transportation infrastructure, environmental, water resources, and industrial projects. The company’s experience and expertise are leveraged to provide clients with the highest quality of construction services and materials. With the acquisition of Coast Mountain Resources, Granite Construction will now be able to provide its services to clients in Canada and further expand its business operations.

Share Price

This news sent the company’s stock tumbling, opening at $37.7 and closing at $37.6, down 1.4% from the prior closing price of $38.2. The acquisition of Coast Mountain Resources has been in the works for some time and is an exciting step forward for GRANITE CONSTRUCTION. Coast Mountain Resources is a leader in the Canadian construction industry, with an extensive network of clients and a dedicated team of professionals. This acquisition will give GRANITE CONSTRUCTION the opportunity to expand its operations and better serve its Canadian customer base.

GRANITE CONSTRUCTION is committed to delivering quality products and services to its customers. With the acquisition of Coast Mountain Resources, it will be able to provide customers with greater access to its products and services, and increased capacity to meet their needs. GRANITE CONSTRUCTION is confident that the acquisition will be a successful one and will help to further solidify its position in the Canadian construction industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Granite Construction. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Granite Construction. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Granite Construction. More…

Key Ratios Snapshot

Some of the financial key ratios for Granite Construction are shown below. More…

Analysis – Granite Construction Stock Fair Value Calculation

At GoodWhale, we have conducted an analysis of the fundamentals of GRANITE CONSTRUCTION. After careful consideration, we have concluded that the fair value of GRANITE CONSTRUCTION is around $33.5, as determined by our proprietary Valuation Line. Currently, GRANITE CONSTRUCTION stock is trading at $37.6, a price which is fairly overvalued by 12.1%. More…

Peers

The company has a long history of success and has completed many high-profile projects.

However, Granite Construction Inc is not the only construction company in the market and faces stiff competition from other companies such as IL&FS Engineering and Construction Co Ltd, PBA Infrastructure Ltd, and MBL Infrastructures Ltd.

– IL&FS Engineering and Construction Co Ltd ($BSE:532907)

IL&FS Engineering and Construction Co Ltd is an engineering and construction company that operates in the infrastructure sector in India. The company has a market cap of 2 billion as of 2022 and a return on equity of 7.54%. The company provides engineering, procurement, and construction services for a variety of infrastructure projects, including roads, bridges, tunnels, railways, and power plants.

– PBA Infrastructure Ltd ($BSE:532676)

PBA Infrastructure Ltd is an Australian engineering and infrastructure company. They have a market cap of 164.44M as of 2022 and a Return on Equity of 1.6%. PBA Infrastructure Ltd is involved in the design, construction, financing and operation of social and economic infrastructure assets.

– MBL Infrastructures Ltd ($BSE:533152)

MBL Infrastructures Ltd is an India-based engineering,procurement and construction (EPC) company. The Company is engaged in the business of civil construction, which includes roads, bridges, flyovers, buildings and irrigation. It also has a presence in the power sector. The Company’s segments include Construction and Power. Its Construction segment includes civil construction and other infrastructure development works. Its Power segment includes generation, transmission and distribution of power. The Company’s projects include National Highways, State Highways, Major District Roads, Rural Roads, City Roads, Bridges, Flyovers, Buildings, Water Supply and Sewerage Treatment Plants and Irrigation.

Summary

Granite Construction is an American-based construction firm that has recently invested in Coast Mountain Resources, a British Columbia-based resource extraction firm. The investment is seen as part of Granite’s strategy to diversify its revenue stream by entering into the resource extraction market. Granite’s decision to invest in Coast Mountain Resources was driven by the company’s fundamental financial strength, production capabilities, and the potential for long-term growth.

Granite’s analysis suggests that Coast Mountain Resources will be a valuable contributor to the company’s bottom line in the near-term, and will have a positive impact on Granite’s financial performance in the longer term. Overall, Granite’s investment in Coast Mountain Resources is seen as a sound decision for the company and is expected to benefit both companies financially.