Denison Mines announces $250 million convertible notes offering
On Tuesday, DA Davidson reaffirmed its Buy rating for Granite Construction (NYSE:GVA), with a focus on the company's position in its major markets. According to InvestingPro data, analysts maintain a consensus Buy recommendation, with the company showing strong financial health metrics and a 14.2% revenue growth in the last twelve months. Analyst Brent Thielman provided an update on the company's market lettings value, noting a 6% decrease on a trailing twelve-month (TTM) basis compared to the previous two-year average. Specifically, the California market showed a 17% year-over-year decline in TTM comparisons, yet lettings values were up by 7% and 22% over the five-year and ten-year averages, respectively. Thielman highlighted that the number of bids planned for advertisement in 2025 suggests an ongoing high level of backlog bids, indicating a robust pipeline for future projects.
The Utah market displayed a more significant drop of 43% year-over-year in TTM lettings values, but these values were still 2% and 11% higher than the five-year and ten-year averages, respectively. Thielman pointed out that despite these mixed trends, there is an active runway for bid releases anticipated in Utah, which could impact the company's near-term capital projects. The company's solid financial position is evidenced by its current ratio of 1.66 and moderate debt levels, suggesting ample capacity to pursue new projects.
The analyst also mentioned that while ongoing activity levels across these and other markets should be monitored, no change to Granite Construction's growth expectations is anticipated at this stage. The expectation is that the awards will contribute to the company's capital projects in the near term.
Furthermore, Thielman sees potential in the company's valuation and the possibility for a medium-term to long-term re-rating. He also noted that the first quarter should bring enhanced disclosures related to Granite Construction's Materials segment, which could provide additional insights into the company's performance and prospects. InvestingPro analysis suggests the stock is currently undervalued, with additional upside potential. For deeper insights into GVA's valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Granite Construction reported its Q4 2024 earnings, surpassing analysts' expectations with an earnings per share (EPS) of $1.23, compared to the forecasted $1.17. The company also reported revenues of $977 million, slightly above the anticipated $976.76 million. For the full year, Granite's revenue increased by 14% to $4 billion, and the company plans to complete 2-3 mergers and acquisitions in 2025. Additionally, Granite Construction, in partnership with Obayashi Corporation, secured a $97 million contract from the Naval Facilities Engineering Command to enhance the Battery Energy Storage System at Polaris (NYSE:PII) Point, Guam. This project will be part of Granite's first-quarter Capital Projects Acquisition as the consolidating partner. The construction on this facility is scheduled to begin in March 2025 and is expected to be completed by June 2028. Granite's financial performance in 2024 was robust, with gross profit surging 44% to $573 million and operating cash flow increasing by 148% to $456 million. Looking ahead, Granite projects revenue between $4.2 billion and $4.4 billion for 2025, with an organic growth target of 6-8%.
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