| 2015 | 2016 | 2018 | 2019 (projected) | Granite Construction Long Term Debt to Equity | 0.29 | 0.26 | 0.30 | 0.40 | Granite Construction Interest Coverage | 5.00 | 9.19 | 10.57 | 9.59 |
Time to quit on Granite Construction is now
 | By Ellen Johnson | Macroaxis Story |
This piece will go over Granite Construction. I will address the reasons why this entity was insulated from the current market uncertainty. Granite Construction moves indifferently to market moves. The returns on investing in Granite Construction and the market returns of the last few months appear uncorrelated. The appearance of strong basic indicators of the company suggests short term price swing for investors of the company. What is Granite Construction Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of Granite Construction to move above current price in 30 days from now is about 48.43%. The Granite Construction Incorporated probability density function shows the probability of Granite Construction Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Granite Construction Incorporated has beta of -0.0437 . This indicates as returns on benchmark increase, returns on holding Granite Construction are expected to decrease at a much smaller rate. During bear market, however, Granite Construction Incorporated is likely to outperform the market. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Granite Construction is significantly underperforming S&P 500.
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Reviewed by Michael Smolkin
This firm average rating is Buy from 7 analysts. As of 15 of February Granite Construction retains Risk Adjusted Performance of (0.047252) and Market Risk Adjusted Performance of 1.47. Granite Construction technical analysis makes it possible for you to employ historical prices and volume momentum with intention to determine a pattern that calculates the direction of the corporation future prices. In other words you can use this information to find out if the corporation will indeed mirror its model of historical price patterns or the prices will eventually revert. We found nineteen technical drivers for Granite Construction which can be compared to its competitors. Please check out Granite Construction Jensen Alpha, Semi Variance and the relationship between Standard Deviation and Value At Risk to decide if Granite Construction is priced fairly providing market reflects its last-minute price of 42.17 per share. Given that Granite Construction Incorporated has Jensen Alpha of (0.06), we strongly advise you confirm Granite Construction regular market performance to make sure the company can sustain itself at future point.
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.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Granite Construction Incorporated. In general, sophisticated investors focus on analyzing Granite Construction stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Granite Construction's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Granite Construction's intrinsic value. In addition to deriving basic predictive indicators for Granite Construction, many experienced traders also check how macroeconomic factors affect Granite Construction price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
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.
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
The latest bullish price patterns experienced by current Granite Construction shareholders may raise some interest from investors. The Stock closed today at a share price of 41.4 on 369003.000 in trading volume. The company directors and management have been very successful with rebalancing the corporation components at opportune times to take advantage of market volatility in January. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.0599. The current volatility is consistent with the ongoing market swings in January 2019 as well as with Granite Construction Incorporated unsystematic, company specific events. Granite Construction maintains profit margin of 2.13% . Granite Construction is trading at 42.17 which is 5.93 percent decrease. Day high is 42.67. Granite Construction EBITDA Margin is increasing over the last 5 years. Further, Granite Construction Revenue Per Employee is increasing over the last 5 years.
All things considered, we belive that Granite Construction is currently undervalued with low probability of distress in the next two years. Our actual buy or sell advice on the company is Hold.
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