GRANITE RIDGE RESOURCES INC (GRNT)
US3874321074 - Common Stock
Taking everything into account, GRNT scores 4 out of 10 in our fundamental rating. GRNT was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. GRNT has only an average score on both its financial health and profitability. GRNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GRNT was profitable.
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.
Of the past 5 years GRNT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GRNT (4.62%) is comparable to the rest of the industry.
GRNT has a Return On Equity of 7.25%. This is in the lower half of the industry: GRNT underperforms 63.18% of its industry peers.
GRNT has a Return On Invested Capital of 8.78%. This is in the better half of the industry: GRNT outperforms 60.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRNT is below the industry average of 29.03%.
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 Rank | Sector 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
1.3 Margins
The Profit Margin of GRNT (12.58%) is comparable to the rest of the industry.
GRNT has a Operating Margin of 25.50%. This is comparable to the rest of the industry: GRNT outperforms 56.22% of its industry peers.
Looking at the Gross Margin, with a value of 92.94%, GRNT belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
GRNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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
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 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 2.18. 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.
The Altman-Z score of GRNT (2.18) is better than 62.69% 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.
With a decent Debt to Equity ratio value of 0.30, GRNT is doing good in the industry, outperforming 61.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.18 |
ROIC/WACC0.96
WACC9.11%
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.
With a decent Current ratio value of 1.56, GRNT is doing good in the industry, outperforming 62.19% of the companies in the same industry.
A Quick Ratio of 1.56 indicates that GRNT should not have too much problems paying its short term obligations.
The Quick ratio of GRNT (1.56) is better than 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
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
GRNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 65.39% yearly.
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
GRNT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.69% yearly.
Based on estimates for the next years, GRNT will show a quite strong growth in Revenue. The Revenue will grow by 10.11% on average per year.
EPS Next Y-35.78%
EPS Next 2Y-16.4%
EPS Next 3Y-9.69%
EPS Next 5YN/A
Revenue Next Year-3.49%
Revenue Next 2Y8.94%
Revenue Next 3Y10.11%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.31, which indicates a very decent valuation of GRNT.
GRNT's Price/Earnings is on the same level as the industry average.
GRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
GRNT is valuated reasonably with a Price/Forward Earnings ratio of 11.78.
GRNT's Price/Forward Earnings ratio is in line with the industry average.
GRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRNT is valued a bit cheaper than the industry average as 78.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.58 |
4.3 Compensation for Growth
A cheap valuation may be justified as GRNT's earnings are expected to decrease with -9.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.4%
EPS Next 3Y-9.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.62%, GRNT is a good candidate for dividend investing.
GRNT's Dividend Yield is a higher than the industry average which is at 6.75.
Compared to an average S&P500 Dividend Yield of 2.33, GRNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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
5.3 Sustainability
120.40% of the earnings are spent on dividend by GRNT. This is not a sustainable payout ratio.
DP120.4%
EPS Next 2Y-16.4%
EPS Next 3Y-9.69%
GRANITE RIDGE RESOURCES INC
NYSE:GRNT (1/3/2025, 8:04:01 PM)
After market: 6.67 0 (0%)6.67
+0.02 (+0.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.59%
Inst Owner Change-6.89%
Ins Owners1.76%
Ins Owner Change17.53%
Market Cap872.04M
Analysts80
Price Target7.71 (15.59%)
Short Float %5.9%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Dividend Growth(5Y)N/A
DP120.4%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.18%
EPS NY rev (1m)-1.92%
EPS NY rev (3m)-47.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-15.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.78 | ||
| P/S | 2.29 | ||
| P/FCF | N/A | ||
| P/OCF | 2.93 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)0.59
EY8.85%
EPS(NY)0.57
Fwd EY8.49%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)2.28
OCFY34.14%
SpS2.91
BVpS5.05
TBVpS5.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.18 |
F-Score5
WACC9.11%
ROIC/WACC0.96
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-35.78%
EPS Next 2Y-16.4%
EPS Next 3Y-9.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-51.51%
Revenue growth 3Y65.39%
Revenue growth 5YN/A
Sales Q2Q%-13.22%
Revenue Next Year-3.49%
Revenue Next 2Y8.94%
Revenue Next 3Y10.11%
Revenue Next 5YN/A
EBIT growth 1Y-75.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year133.52%
EBIT Next 3Y44.54%
EBIT Next 5YN/A
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