Is Granite Ridge Stock a Good Investment?
Granite Ridge Investment Advice | GRNT |
- Examine Granite Ridge's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Granite Ridge's leadership team and their track record. Good management can help Granite Ridge navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Exploration & Production space and any emerging trends that could impact Granite Ridge's business and its evolving consumer preferences.
- Compare Granite Ridge's performance and market position to its competitors. Analyze how Granite Ridge is positioned in terms of product offerings, innovation, and market share.
- Check if Granite Ridge pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Granite Ridge's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Granite Ridge Resources stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Granite Ridge Resources is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Granite Ridge Stock
Researching Granite Ridge's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 52.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.31. Some equities with similar Price to Book (P/B) outperform the market in the long run. Granite Ridge Resources has Price/Earnings (P/E) ratio of 459.5. The entity last dividend was issued on the 29th of November 2024. The firm had 2499:1000 split on the 26th of March 2021.
To determine if Granite Ridge is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Granite Ridge's research are outlined below:
| Granite Ridge Resources currently holds 110 M in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the company is not taking enough advantage from borrowing. Granite Ridge Resources has a current ratio of 0.02, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Granite Ridge's use of debt, we should always consider it together with its cash and equity. | |
| About 52.0% of Granite Ridge shares are held by company insiders | |
| Latest headline from investing.com: Acquisition by Miller Matthew Reade of 20327 shares of Granite Ridge at 6.6 subject to Rule 16b-3 |
Granite Ridge Quarterly Gross Profit |
|
Granite Ridge uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Granite Ridge Resources. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Granite Ridge's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of March 2024 Upcoming Quarterly Report | View | |
| 9th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 25th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Granite Ridge's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Granite Ridge's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-09 | 2024-03-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2023-11-09 | 2023-09-30 | 0.24 | 0.21 | -0.03 | 12 | ||
2023-03-27 | 2022-12-31 | 0.47 | 0.42 | -0.05 | 10 | ||
2023-08-10 | 2023-06-30 | 0.18 | 0.07 | -0.11 | 61 | ||
2022-10-24 | 2022-09-30 | 0.54 | 0.02 | -0.52 | 96 |
Know Granite Ridge's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Granite Ridge is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Granite Ridge Resources backward and forwards among themselves. Granite Ridge's institutional investor refers to the entity that pools money to purchase Granite Ridge's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1 M | Aqr Capital Management Llc | 2024-06-30 | 936.2 K | Geode Capital Management, Llc | 2024-06-30 | 904.3 K | State Street Corp | 2024-06-30 | 874.7 K | Macquarie Group Ltd | 2024-06-30 | 619.5 K | Northern Trust Corp | 2024-09-30 | 433.1 K | Charles Schwab Investment Management Inc | 2024-09-30 | 424.6 K | Two Sigma Investments Llc | 2024-06-30 | 357.1 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 340.3 K | Hamilton Lane Advisors Llc | 2024-09-30 | 8 M | Utah Retirement Systems | 2024-06-30 | 5.2 M |
Granite Ridge's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 864.22 M.Market Cap |
|
Granite Ridge's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.09 | 0.09 | |
| Return On Capital Employed | 0.14 | 0.14 | |
| Return On Assets | 0.09 | 0.09 | |
| Return On Equity | 0.12 | 0.13 |
Determining Granite Ridge's profitability involves analyzing its financial statements and using various financial metrics to determine if Granite Ridge is a good buy. For example, gross profit margin measures Granite Ridge's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Granite Ridge's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Granite Ridge's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Granite Ridge Resources. Check Granite Ridge's Beneish M Score to see the likelihood of Granite Ridge's management manipulating its earnings.
Evaluate Granite Ridge's management efficiency
Granite Ridge Resources has return on total asset (ROA) of 0.08 % which means that it generated a profit of $0.08 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0731 %, meaning that it created $0.0731 on every $100 dollars invested by stockholders. Granite Ridge's management efficiency ratios could be used to measure how well Granite Ridge manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to gain to 0.09 in 2024. Return On Capital Employed is likely to gain to 0.14 in 2024. At this time, Granite Ridge's Non Current Liabilities Total is comparatively stable compared to the past year. Change To Liabilities is likely to gain to about 11.9 M in 2024, whereas Total Current Liabilities is likely to drop slightly above 36.8 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 5.05 | 5.30 | |
| Tangible Book Value Per Share | 5.05 | 5.30 | |
| Enterprise Value Over EBITDA | 3.32 | 5.47 | |
| Price Book Value Ratio | 1.19 | 1.13 | |
| Enterprise Value Multiple | 3.32 | 5.47 | |
| Price Fair Value | 1.19 | 1.13 | |
| Enterprise Value | 810.7 M | 540.1 M |
Leadership effectiveness at Granite Ridge Resources is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Dividend Yield 0.0666 | Forward Dividend Yield 0.0666 | Forward Dividend Rate 0.44 | Beta 0.165 |
Basic technical analysis of Granite Stock
As of the 22nd of November, Granite Ridge retains the market risk adjusted performance of 0.108, and Risk Adjusted Performance of 0.0563. Granite Ridge technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Granite Ridge's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Granite Ridge insiders, such as employees or executives, is commonly permitted as long as it does not rely on Granite Ridge's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Granite Ridge insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Understand Granite Ridge's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Granite Ridge's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0563 | |||
| Market Risk Adjusted Performance | 0.108 | |||
| Mean Deviation | 1.46 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 1.99 | |||
| Coefficient Of Variation | 1515.66 | |||
| Standard Deviation | 1.89 | |||
| Variance | 3.56 | |||
| Information Ratio | 0.0079 | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0075 | |||
| Treynor Ratio | 0.098 | |||
| Maximum Drawdown | 8.43 | |||
| Value At Risk | (3.47) | |||
| Potential Upside | 2.76 | |||
| Downside Variance | 3.96 | |||
| Semi Variance | 3.23 | |||
| Expected Short fall | (1.63) | |||
| Skewness | (0.24) | |||
| Kurtosis | 0.1681 |
| Risk Adjusted Performance | 0.0563 | |||
| Market Risk Adjusted Performance | 0.108 | |||
| Mean Deviation | 1.46 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 1.99 | |||
| Coefficient Of Variation | 1515.66 | |||
| Standard Deviation | 1.89 | |||
| Variance | 3.56 | |||
| Information Ratio | 0.0079 | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0075 | |||
| Treynor Ratio | 0.098 | |||
| Maximum Drawdown | 8.43 | |||
| Value At Risk | (3.47) | |||
| Potential Upside | 2.76 | |||
| Downside Variance | 3.96 | |||
| Semi Variance | 3.23 | |||
| Expected Short fall | (1.63) | |||
| Skewness | (0.24) | |||
| Kurtosis | 0.1681 |
Consider Granite Ridge's intraday indicators
Granite Ridge intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Granite Ridge stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Granite Ridge Corporate Filings
F4 | 22nd of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Granite Stock media impact
Far too much social signal, news, headlines, and media speculation about Granite Ridge that are available to investors today. That information is available publicly through Granite media outlets and privately through word of mouth or via Granite internal channels. However, regardless of the origin, that massive amount of Granite data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Granite Ridge news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Granite Ridge relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Granite Ridge's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Granite Ridge alpha.
Granite Ridge Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Granite Ridge can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Granite Ridge Corporate Management
| Matthew CFA | CoFounder CoChairman | Profile | |
| Emily Fuquay | Corporate Secretary | Profile | |
| Wade Caston | Assistant Controller | Profile | |
| Witt Meloni | Assistant Controller | Profile | |
| Griffin Perry | CoFounder CoChairman | Profile | |
| Kimberly Weimer | Chief Officer | Profile |
Additional Tools for Granite Stock Analysis
When running Granite Ridge's price analysis, check to measure Granite Ridge's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Granite Ridge is operating at the current time. Most of Granite Ridge's value examination focuses on studying past and present price action to predict the probability of Granite Ridge's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Granite Ridge's price. Additionally, you may evaluate how the addition of Granite Ridge to your portfolios can decrease your overall portfolio volatility.