GRNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While GRNT is still in line with the averages on profitability rating, there are concerns on its financial health. GRNT is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

GRNT had positive earnings in the past year.
In the past year GRNT had a positive cash flow from operations.
GRNT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GRNT had a positive operating cash flow.

1.2 Ratios

GRNT has a Return On Assets (3.33%) which is in line with its industry peers.
With a Return On Equity value of 5.84%, GRNT perfoms like the industry average, outperforming 45.89% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.01%, GRNT is doing good in the industry, outperforming 73.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GRNT is significantly below the industry average of 21.94%.
The 3 year average ROIC (16.49%) for GRNT is well above the current ROIC(8.01%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	3.33%
ROE	5.84%
ROIC	8.01%

ROA(3y)14.52%

ROA(5y)11.52%

ROE(3y)18.16%

ROE(5y)14.28%

ROIC(3y)16.49%

ROIC(5y)N/A

1.3 Margins

GRNT's Profit Margin of 8.33% is in line compared to the rest of the industry. GRNT outperforms 54.11% of its industry peers.
In the last couple of years the Profit Margin of GRNT has declined.
GRNT's Operating Margin of 24.59% is fine compared to the rest of the industry. GRNT outperforms 64.73% of its industry peers.
In the last couple of years the Operating Margin of GRNT has declined.
The Gross Margin of GRNT (93.71%) is better than 97.58% of its industry peers.
In the last couple of years the Gross Margin of GRNT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	24.59%
PM (TTM)	8.33%
GM	93.71%

OM growth 3Y-19.75%

OM growth 5YN/A

PM growth 3Y-49.27%

PM growth 5YN/A

GM growth 3Y-0.22%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GRNT is creating value.
The number of shares outstanding for GRNT has been increased compared to 1 year ago.
GRNT has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.53, we must say that GRNT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GRNT (1.53) is comparable to the rest of the industry.
GRNT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
GRNT has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	N/A
Altman-Z	1.53

ROIC/WACC0.9

WACC8.91%

2.3 Liquidity

A Current Ratio of 1.41 indicates that GRNT should not have too much problems paying its short term obligations.
GRNT has a Current ratio of 1.41. This is in the better half of the industry: GRNT outperforms 62.80% of its industry peers.
GRNT has a Quick Ratio of 1.41. This is a normal value and indicates that GRNT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.41, GRNT is doing good in the industry, outperforming 70.05% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.41
Quick Ratio	1.41

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for GRNT have decreased by 0.00% in the last year.
The earnings per share for GRNT have been decreasing by -43.98% on average. This is quite bad
GRNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.56%.
The Revenue has been growing by 9.41% on average over the past years. This is quite good.

EPS 1Y (TTM)0%

EPS 3Y-43.98%

EPS 5YN/A

EPS Q2Q%-35.71%

Revenue 1Y (TTM)18.56%

Revenue growth 3Y9.41%

Revenue growth 5YN/A

Sales Q2Q%19.77%

3.2 Future

The Earnings Per Share is expected to decrease by -1.35% on average over the next years.
GRNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.

EPS Next Y-5.95%

EPS Next 2Y-9.89%

EPS Next 3Y3.7%

EPS Next 5Y-1.35%

Revenue Next Year26.39%

Revenue Next 2Y17.46%

Revenue Next 3Y13.43%

Revenue Next 5Y9.01%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.85, the valuation of GRNT can be described as very cheap.
88.41% of the companies in the same industry are more expensive than GRNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GRNT to the average of the S&P500 Index (27.25), we can say GRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.18, the valuation of GRNT can be described as very reasonable.
GRNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GRNT is cheaper than 79.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. GRNT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	7.85
Fwd PE	10.18

4.2 Price Multiples

94.20% of the companies in the same industry are more expensive than GRNT, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	2.68

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-9.89%

EPS Next 3Y3.7%

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5. Dividend

5.1 Amount

GRNT has a Yearly Dividend Yield of 9.59%, which is a nice return.
GRNT's Dividend Yield is rather good when compared to the industry average which is at 3.73. GRNT pays more dividend than 91.79% of the companies in the same industry.
GRNT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	9.59%

5.2 History

GRNT has paid a dividend for less than 5 years, so there is no long track record yet.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years2

5.3 Sustainability

153.30% of the earnings are spent on dividend by GRNT. This is not a sustainable payout ratio.

DP153.3%

EPS Next 2Y-9.89%

EPS Next 3Y3.7%

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GRANITE RIDGE RESOURCES INC / GRNT FAQ

Can you provide the ChartMill fundamental rating for GRANITE RIDGE RESOURCES INC?

ChartMill assigns a fundamental rating of 4 / 10 to GRNT.

What is the valuation status of GRANITE RIDGE RESOURCES INC (GRNT) stock?

ChartMill assigns a valuation rating of 5 / 10 to GRANITE RIDGE RESOURCES INC (GRNT). This can be considered as Fairly Valued.

Can you provide the profitability details for GRANITE RIDGE RESOURCES INC?

GRANITE RIDGE RESOURCES INC (GRNT) has a profitability rating of 5 / 10.

Can you provide the PE and PB ratios for GRNT stock?

The Price/Earnings (PE) ratio for GRANITE RIDGE RESOURCES INC (GRNT) is 7.85 and the Price/Book (PB) ratio is 0.94.

How financially healthy is GRANITE RIDGE RESOURCES INC?

The financial health rating of GRANITE RIDGE RESOURCES INC (GRNT) is 3 / 10.