GRANITE RIDGE RESOURCES INC (GRNT)
US3874321074 - Common Stock
GRNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 205 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of GRNT get a neutral evaluation. Nothing too spectacular is happening here. GRNT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GRNT had positive earnings in the past year.
GRNT had a positive operating cash flow in the past year.
In multiple years GRNT reported negative net income over the last 5 years.
Of the past 5 years GRNT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GRNT (5.74%) is comparable to the rest of the industry.
GRNT has a Return On Equity (8.54%) which is comparable to the rest of the industry.
GRNT has a Return On Invested Capital of 9.90%. This is in the better half of the industry: GRNT outperforms 60.78% of its industry peers.
GRNT had an Average Return On Invested Capital over the past 3 years of 24.18%. This is in line with the industry average of 22.91%.
The last Return On Invested Capital (9.90%) for GRNT is well below the 3 year average (24.18%), which needs to be investigated, but indicates that GRNT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 8.54% | ||
| ROIC | 9.9% |
ROA(3y)20.53%
ROA(5y)N/A
ROE(3y)24.8%
ROE(5y)N/A
ROIC(3y)24.18%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 14.39%, GRNT is in line with its industry, outperforming 52.45% of the companies in the same industry.
The Operating Margin of GRNT (26.90%) is comparable to the rest of the industry.
GRNT has a Gross Margin of 92.83%. This is amongst the best in the industry. GRNT outperforms 97.55% 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 | 26.9% | ||
| PM (TTM) | 14.39% | ||
| GM | 92.83% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.22%
GM growth 5YN/A
2. Health
2.1 Basic Checks
GRNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GRNT has been reduced compared to 1 year ago.
The debt/assets ratio for GRNT is higher compared to a year ago.
2.2 Solvency
GRNT has an Altman-Z score of 2.35. This is not the best score and indicates that GRNT is in the grey zone with still only limited risk for bankruptcy at the moment.
GRNT has a better Altman-Z score (2.35) than 63.73% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that GRNT is not too dependend on debt financing.
GRNT's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. GRNT outperforms 64.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.35 |
ROIC/WACC1.12
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.24 indicates that GRNT has no problem at all paying its short term obligations.
GRNT has a Current ratio of 2.24. This is in the better half of the industry: GRNT outperforms 73.04% of its industry peers.
A Quick Ratio of 2.24 indicates that GRNT has no problem at all paying its short term obligations.
GRNT's Quick ratio of 2.24 is fine compared to the rest of the industry. GRNT outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
GRNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
The Revenue for GRNT has decreased by -20.78% in the past year. This is quite bad
GRNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 65.39% yearly.
EPS 1Y (TTM)-21.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-31.58%
Revenue 1Y (TTM)-20.78%
Revenue growth 3Y65.39%
Revenue growth 5YN/A
Sales Q2Q%3.53%
3.2 Future
The Earnings Per Share is expected to decrease by -4.55% on average over the next years.
The Revenue is expected to grow by 7.24% on average over the next years.
EPS Next Y-24.67%
EPS Next 2Y-3.49%
EPS Next 3Y-4.55%
EPS Next 5YN/A
Revenue Next Year-3.34%
Revenue Next 2Y7.79%
Revenue Next 3Y7.24%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.94 indicates a reasonable valuation of GRNT.
GRNT's Price/Earnings ratio is a bit cheaper when compared to the industry. GRNT is cheaper than 68.63% of the companies in the same industry.
GRNT is valuated cheaply when we compare the Price/Earnings ratio to 30.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.82, the valuation of GRNT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRNT indicates a somewhat cheap valuation: GRNT is cheaper than 68.14% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. GRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRNT is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
A cheap valuation may be justified as GRNT's earnings are expected to decrease with -4.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.49%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.39%, GRNT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, GRNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.21, GRNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
102.16% of the earnings are spent on dividend by GRNT. This is not a sustainable payout ratio.
DP102.16%
EPS Next 2Y-3.49%
EPS Next 3Y-4.55%
GRANITE RIDGE RESOURCES INC
NYSE:GRNT (10/29/2024, 8:14:25 PM)
After market: 5.9 0 (0%)5.9
-0.01 (-0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap771.37M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 7.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 8.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.9% | ||
| PM (TTM) | 14.39% | ||
| GM | 92.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-21.43%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-24.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.78%
Revenue growth 3Y65.39%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y