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GRANITE RIDGE RESOURCES INC (GRNT) Stock Fundamental Analysis

NYSE:GRNT - New York Stock Exchange, Inc. - US3874321074 - Common Stock - Currency: USD

6.13  -0.28 (-4.37%)

After market: 6.1 -0.03 (-0.49%)

Fundamental Rating

4

Overall GRNT gets a fundamental rating of 4 out of 10. We evaluated GRNT against 211 industry peers in the Oil, Gas & Consumable Fuels industry. GRNT has an average financial health and profitability rating. GRNT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

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.
The reported net income has been mixed in the past 5 years: GRNT reported negative net income in multiple years.
GRNT had a positive operating cash flow in 4 of the past 5 years.
GRNT Yearly Net Income VS EBIT VS OCF VS FCFGRNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M

1.2 Ratios

The Return On Assets of GRNT (4.62%) is comparable to the rest of the industry.
With a Return On Equity value of 7.25%, GRNT is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
GRNT's Return On Invested Capital of 8.78% is fine compared to the rest of the industry. GRNT outperforms 61.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GRNT is below the industry average of 28.75%.
The 3 year average ROIC (24.18%) for GRNT is well above the current ROIC(8.78%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 4.62%
ROE 7.25%
ROIC 8.78%
ROA(3y)20.53%
ROA(5y)N/A
ROE(3y)24.8%
ROE(5y)N/A
ROIC(3y)24.18%
ROIC(5y)N/A
GRNT Yearly ROA, ROE, ROICGRNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

GRNT has a Profit Margin (12.58%) which is comparable to the rest of the industry.
GRNT has a Operating Margin (25.50%) which is in line with its industry peers.
GRNT has a better Gross Margin (92.94%) than 97.06% of its industry peers.
GRNT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 25.5%
PM (TTM) 12.58%
GM 92.94%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.22%
GM growth 5YN/A
GRNT Yearly Profit, Operating, Gross MarginsGRNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40 60 80

5

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.
Compared to 1 year ago, GRNT has less shares outstanding
Compared to 1 year ago, GRNT has a worse debt to assets ratio.
GRNT Yearly Shares OutstandingGRNT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 20M 40M 60M 80M 100M
GRNT Yearly Total Debt VS Total AssetsGRNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 2.07 indicates that GRNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
GRNT has a Altman-Z score of 2.07. This is in the better half of the industry: GRNT outperforms 61.76% of its industry peers.
GRNT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, GRNT is in the better half of the industry, outperforming 60.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF N/A
Altman-Z 2.07
ROIC/WACC0.98
WACC8.96%
GRNT Yearly LT Debt VS Equity VS FCFGRNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

GRNT has a Current Ratio of 1.56. This is a normal value and indicates that GRNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.56, GRNT is in the better half of the industry, outperforming 62.25% of the companies in the same industry.
GRNT has a Quick Ratio of 1.56. This is a normal value and indicates that GRNT is financially healthy and should not expect problems in meeting its short term obligations.
GRNT has a Quick ratio of 1.56. This is in the better half of the industry: GRNT outperforms 69.12% of its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.56
GRNT Yearly Current Assets VS Current LiabilitesGRNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 50M 100M 150M

4

3. Growth

3.1 Past

The earnings per share for GRNT have decreased strongly by -42.72% in the last year.
The Revenue for GRNT has decreased by -51.51% in the past year. This is quite bad
Measured over the past years, GRNT shows a very strong growth in Revenue. The Revenue has been growing by 65.39% on average per year.
EPS 1Y (TTM)-42.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-51.51%
Revenue growth 3Y65.39%
Revenue growth 5YN/A
Sales Q2Q%-13.22%

3.2 Future

Based on estimates for the next years, GRNT will show a decrease in Earnings Per Share. The EPS will decrease by -5.20% on average per year.
The Revenue is expected to grow by 11.39% on average over the next years. This is quite good.
EPS Next Y-34.64%
EPS Next 2Y-7.04%
EPS Next 3Y-5.2%
EPS Next 5YN/A
Revenue Next Year-4.87%
Revenue Next 2Y10.44%
Revenue Next 3Y11.39%
Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
GRNT Yearly Revenue VS EstimatesGRNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
GRNT Yearly EPS VS EstimatesGRNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.39, the valuation of GRNT can be described as reasonable.
GRNT's Price/Earnings ratio is a bit cheaper when compared to the industry. GRNT is cheaper than 63.24% of the companies in the same industry.
GRNT is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.76 indicates a reasonable valuation of GRNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRNT indicates a somewhat cheap valuation: GRNT is cheaper than 70.59% of the companies listed in the same industry.
GRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.39
Fwd PE 8.76
GRNT Price Earnings VS Forward Price EarningsGRNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRNT indicates a rather cheap valuation: GRNT is cheaper than 81.37% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.32
GRNT Per share dataGRNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4 5

4.3 Compensation for Growth

GRNT's earnings are expected to decrease with -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.04%
EPS Next 3Y-5.2%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.86%, GRNT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.67, GRNT pays a bit more dividend than its industry peers.
GRNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 6.86%

5.2 History

GRNT has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
GRNT Yearly Dividends per shareGRNT Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

GRNT pays out 120.40% of its income as dividend. This is not a sustainable payout ratio.
DP120.4%
EPS Next 2Y-7.04%
EPS Next 3Y-5.2%
GRNT Yearly Income VS Free CF VS DividendGRNT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2020 2021 2022 2023 0 100M 200M
GRNT Dividend Payout.GRNT Dividend Payout, showing the Payout Ratio.GRNT Dividend Payout.PayoutRetained Earnings

GRANITE RIDGE RESOURCES INC

NYSE:GRNT (2/21/2025, 8:24:31 PM)

After market: 6.1 -0.03 (-0.49%)

6.13

-0.28 (-4.37%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)03-06 2025-03-06/bmo
Inst Owners72.67%
Inst Owner Change-61.39%
Ins Owners3.05%
Ins Owner Change17.15%
Market Cap801.44M
Analysts80
Price Target7.87 (28.38%)
Short Float %5.99%
Short Ratio6.33
Dividend
Industry RankSector Rank
Dividend Yield 6.86%
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP120.4%
Div Incr Years1
Div Non Decr Years2
Ex-Date02-28 2025-02-28 (0.11)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.5%
Min EPS beat(2)-5.87%
Max EPS beat(2)-5.13%
EPS beat(4)1
Avg EPS beat(4)0.64%
Min EPS beat(4)-5.87%
Max EPS beat(4)13.86%
EPS beat(8)2
Avg EPS beat(8)-5.62%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.26%
Min Revenue beat(2)-4.51%
Max Revenue beat(2)-4.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.51%
Max Revenue beat(4)-0.61%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.07%
PT rev (3m)4.85%
EPS NQ rev (1m)-6.41%
EPS NQ rev (3m)-11.62%
EPS NY rev (1m)1.76%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-5.18%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.49%
Valuation
Industry RankSector Rank
PE 10.39
Fwd PE 8.76
P/S 2.11
P/FCF N/A
P/OCF 2.69
P/B 1.21
P/tB 1.21
EV/EBITDA 3.32
EPS(TTM)0.59
EY9.62%
EPS(NY)0.7
Fwd EY11.42%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)2.28
OCFY37.15%
SpS2.91
BVpS5.05
TBVpS5.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.62%
ROE 7.25%
ROCE 10.2%
ROIC 8.78%
ROICexc 9.36%
ROICexgc 9.36%
OM 25.5%
PM (TTM) 12.58%
GM 92.94%
FCFM N/A
ROA(3y)20.53%
ROA(5y)N/A
ROE(3y)24.8%
ROE(5y)N/A
ROIC(3y)24.18%
ROIC(5y)N/A
ROICexc(3y)25.84%
ROICexc(5y)N/A
ROICexgc(3y)25.84%
ROICexgc(5y)N/A
ROCE(3y)28.1%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.22%
GM growth 5YN/A
F-Score5
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF N/A
Debt/EBITDA 0.72
Cap/Depr 182.49%
Cap/Sales 83.57%
Interest Coverage 250
Cash Conversion 109.74%
Profit Quality N/A
Current Ratio 1.56
Quick Ratio 1.56
Altman-Z 2.07
F-Score5
WACC8.96%
ROIC/WACC0.98
Cap/Depr(3y)225.72%
Cap/Depr(5y)N/A
Cap/Sales(3y)71.3%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y-34.64%
EPS Next 2Y-7.04%
EPS Next 3Y-5.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-51.51%
Revenue growth 3Y65.39%
Revenue growth 5YN/A
Sales Q2Q%-13.22%
Revenue Next Year-4.87%
Revenue Next 2Y10.44%
Revenue Next 3Y11.39%
Revenue Next 5YN/A
EBIT growth 1Y-75.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year128.69%
EBIT Next 3Y44.76%
EBIT Next 5Y35.66%
FCF growth 1Y-1296.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20587.6%
OCF growth 3Y65.51%
OCF growth 5YN/A