GRANITE RIDGE RESOURCES INC (GRNT) Stock Fundamental Analysis
USA - NYSE:GRNT - US3874321074 - Common Stock
5.27 USD
+0.12 (+2.33%)
5.31 USD
+0.04 (+0.76%)
Overall GRNT gets a fundamental rating of 5 out of 10. We evaluated GRNT against 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of GRNT while its profitability can be described as average. GRNT has a decent growth rate and is not valued too expensively.
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.
GRNT had positive earnings in 4 of the past 5 years.
GRNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GRNT (2.91%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.00%, GRNT is in line with its industry, outperforming 43.13% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.64%, GRNT is doing good in the industry, outperforming 75.36% 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 21.53%.
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.
GRNT has a Operating Margin of 26.89%. This is in the better half of the industry: GRNT outperforms 66.35% of its industry peers.
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.
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 | 26.89% | ||
| 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
GRNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GRNT has more shares outstanding than it did 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 1.69. This is a bad value and indicates that GRNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, GRNT is in the better half of the industry, outperforming 61.14% 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.
Looking at the Debt to Equity ratio, with a value of 0.43, GRNT is in line with its industry, outperforming 52.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC1.01
WACC8.52%
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.
The Current ratio of GRNT (1.32) is better than 60.66% of its industry peers.
A Quick Ratio of 1.32 indicates that GRNT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, GRNT is in the better half of the industry, outperforming 65.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
GRNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.03%.
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
Based on estimates for the next years, GRNT will show a decrease in Earnings Per Share. The EPS will decrease by -1.35% on average per year.
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 Y8.99%
EPS Next 2Y7.27%
EPS Next 3Y6.54%
EPS Next 5Y-1.35%
Revenue Next Year27%
Revenue Next 2Y19.36%
Revenue Next 3Y12.76%
Revenue Next 5Y9.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
GRNT is valuated reasonably with a Price/Earnings ratio of 8.23.
GRNT's Price/Earnings ratio is rather cheap when compared to the industry. GRNT is cheaper than 81.99% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRNT to the average of the S&P500 Index (27.57), we can say GRNT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.18 indicates a reasonable valuation of GRNT.
80.57% of the companies in the same industry are more expensive than GRNT, based on the Price/Forward Earnings ratio.
GRNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
89.10% 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 | 2.97 |
4.3 Compensation for Growth
GRNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y7.27%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.37%, GRNT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.30, GRNT pays a better dividend. On top of this GRNT pays more dividend than 81.99% of the companies listed in the same industry.
GRNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.37% |
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 2Y7.27%
EPS Next 3Y6.54%
5.27
+0.12 (+2.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.19%
Inst Owner Change-0.72%
Ins Owners3.23%
Ins Owner Change3.2%
Market Cap691.69M
Revenue(TTM)432.53M
Net Income(TTM)32.15M
Analysts78.33
Price Target7.28 (38.14%)
Short Float %2.54%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.37% |
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)1.18%
PT rev (3m)-4.47%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-15.33%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 8.18 | ||
| P/S | 1.6 | ||
| P/FCF | N/A | ||
| P/OCF | 2.33 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 2.97 |
EPS(TTM)0.64
EY12.14%
EPS(NY)0.64
Fwd EY12.23%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)2.26
OCFY42.94%
SpS3.3
BVpS4.89
TBVpS4.89
PEG (NY)0.92
PEG (5Y)N/A
Graham Number8.4
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
ROICexgc growth 3Y-29.25%
ROICexgc 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 | 1.69 |
F-Score5
WACC8.52%
ROIC/WACC1.01
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 Y8.99%
EPS Next 2Y7.27%
EPS Next 3Y6.54%
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 5Y9.01%
EBIT growth 1Y9.5%
EBIT growth 3Y-12.21%
EBIT growth 5YN/A
EBIT Next Year290.25%
EBIT Next 3Y64.13%
EBIT Next 5Y46.11%
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