GRANITE RIDGE RESOURCES INC (GRNT) Stock Fundamental Analysis
USA - NYSE:GRNT - US3874321074 - Common Stock
5.6 USD
+0.08 (+1.45%)
5.6 USD
0 (0%)
Taking everything into account, GRNT scores 4 out of 10 in our fundamental rating. GRNT was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. GRNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. GRNT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GRNT was profitable.
GRNT had a positive operating cash flow in the past year.
Of the past 5 years GRNT 4 years were profitable.
In the past 5 years GRNT always reported a positive cash flow from operatings.
1.2 Ratios
GRNT has a Return On Assets (2.91%) which is comparable to the rest of the industry.
GRNT has a Return On Equity (5.00%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 8.64%, GRNT is doing good in the industry, outperforming 73.81% of the companies in the same industry.
GRNT had an Average Return On Invested Capital over the past 3 years of 16.49%. This is significantly below the industry average of 21.66%.
The 3 year average ROIC (16.49%) for GRNT is well above the current ROIC(8.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 5% | ||
| ROIC | 8.64% |
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 has a Profit Margin (7.43%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GRNT has declined.
With a decent Operating Margin value of 26.89%, GRNT is doing good in the industry, outperforming 64.76% of the companies in the same industry.
In the last couple of years the Operating Margin of GRNT has declined.
The Gross Margin of GRNT (93.48%) is better than 98.10% of its industry peers.
GRNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.89% | ||
| PM (TTM) | 7.43% | ||
| GM | 93.48% |
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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GRNT is creating value.
The number of shares outstanding for GRNT has been increased compared to 1 year ago.
The debt/assets ratio for GRNT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that GRNT is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.74, GRNT is doing good in the industry, outperforming 60.48% of the companies in the same industry.
GRNT has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
GRNT has a Debt to Equity ratio (0.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.99
WACC8.77%
2.3 Liquidity
GRNT has a Current Ratio of 1.32. 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 1.32, GRNT is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that GRNT should not have too much problems paying its short term obligations.
GRNT has a better Quick ratio (1.32) than 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for GRNT have decreased by -3.03% in the last year.
Measured over the past years, GRNT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -43.98% on average per year.
GRNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.54%.
GRNT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.41% yearly.
EPS 1Y (TTM)-3.03%
EPS 3Y-43.98%
EPS 5YN/A
EPS Q2Q%-15.38%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y9.41%
Revenue growth 5YN/A
Sales Q2Q%20.48%
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 12.76% yearly.
EPS Next Y8.06%
EPS Next 2Y8.12%
EPS Next 3Y6.03%
EPS Next 5Y-1.35%
Revenue Next Year27%
Revenue Next 2Y19.36%
Revenue Next 3Y12.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.75, the valuation of GRNT can be described as very reasonable.
Based on the Price/Earnings ratio, GRNT is valued cheaper than 82.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, GRNT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.56 indicates a reasonable valuation of GRNT.
Based on the Price/Forward Earnings ratio, GRNT is valued a bit cheaper than the industry average as 79.05% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.88. GRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.56 |
4.2 Price Multiples
89.52% 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 | 3.07 |
4.3 Compensation for Growth
GRNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y8.12%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.13%, GRNT is a good candidate for dividend investing.
GRNT's Dividend Yield is rather good when compared to the industry average which is at 6.17. GRNT pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GRNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.13% |
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 Years0
Div Non Decr Years2
5.3 Sustainability
179.08% of the earnings are spent on dividend by GRNT. This is not a sustainable payout ratio.
DP179.08%
EPS Next 2Y8.12%
EPS Next 3Y6.03%
5.6
+0.08 (+1.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.94%
Inst Owner Change1.07%
Ins Owners3.2%
Ins Owner Change3.19%
Market Cap735.00M
Analysts78.18
Price Target7.19 (28.39%)
Short Float %2.65%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.13% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP179.08%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.94%
Min EPS beat(2)-13.73%
Max EPS beat(2)7.84%
EPS beat(4)2
Avg EPS beat(4)5.14%
Min EPS beat(4)-13.73%
Max EPS beat(4)31.58%
EPS beat(8)3
Avg EPS beat(8)1.64%
EPS beat(12)4
Avg EPS beat(12)-9.64%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.79%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)4.09%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-4.01%
Max Revenue beat(4)4.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
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)-4.51%
PT rev (3m)-2.08%
EPS NQ rev (1m)-12.2%
EPS NQ rev (3m)-28.06%
EPS NY rev (1m)-7.16%
EPS NY rev (3m)-17.32%
Revenue NQ rev (1m)2.87%
Revenue NQ rev (3m)5.47%
Revenue NY rev (1m)2.04%
Revenue NY rev (3m)3.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.56 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 2.47 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 3.07 |
EPS(TTM)0.64
EY11.43%
EPS(NY)0.65
Fwd EY11.69%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)2.26
OCFY40.41%
SpS3.3
BVpS4.89
TBVpS4.89
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 5% | ||
| ROCE | 11.38% | ||
| ROIC | 8.64% | ||
| ROICexc | 8.83% | ||
| ROICexgc | 8.83% | ||
| OM | 26.89% | ||
| PM (TTM) | 7.43% | ||
| GM | 93.48% | ||
| FCFM | N/A |
ROA(3y)14.52%
ROA(5y)11.52%
ROE(3y)18.16%
ROE(5y)14.28%
ROIC(3y)16.49%
ROIC(5y)N/A
ROICexc(3y)17.88%
ROICexc(5y)N/A
ROICexgc(3y)17.88%
ROICexgc(5y)N/A
ROCE(3y)21.7%
ROCE(5y)N/A
ROICexcg growth 3Y-29.25%
ROICexcg growth 5YN/A
ROICexc growth 3Y-29.25%
ROICexc growth 5YN/A
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
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 204.05% | ||
| Cap/Sales | 92.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.74 |
F-Score5
WACC8.77%
ROIC/WACC0.99
Cap/Depr(3y)214.02%
Cap/Depr(5y)204.11%
Cap/Sales(3y)76.55%
Cap/Sales(5y)88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.03%
EPS 3Y-43.98%
EPS 5YN/A
EPS Q2Q%-15.38%
EPS Next Y8.06%
EPS Next 2Y8.12%
EPS Next 3Y6.03%
EPS Next 5Y-1.35%
Revenue 1Y (TTM)9.54%
Revenue growth 3Y9.41%
Revenue growth 5YN/A
Sales Q2Q%20.48%
Revenue Next Year27%
Revenue Next 2Y19.36%
Revenue Next 3Y12.76%
Revenue Next 5YN/A
EBIT growth 1Y9.5%
EBIT growth 3Y-12.21%
EBIT growth 5YN/A
EBIT Next Year266.84%
EBIT Next 3Y63.82%
EBIT Next 5Y47.96%
FCF growth 1Y-281.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-40.96%
OCF growth 3Y15.02%
OCF growth 5YN/A