Granite Ridge Resources, Inc
Granite Ridge Resources, Inc Fundamental Analysis
Granite Ridge Resources, Inc (GRNT) shows weak financial fundamentals with a PE ratio of 18.14, profit margin of 8.38%, and ROE of 5.92%. The company generates $0.5B in annual revenue with weak year-over-year growth of -3.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GRNT's fundamental strength across five key dimensions:
Efficiency Score
WeakGRNT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGRNT trades at attractive valuation levels.
Growth Score
WeakGRNT faces weak or negative growth trends.
Financial Health Score
ExcellentGRNT maintains a strong and stable balance sheet.
Profitability Score
WeakGRNT struggles to sustain strong margins.
Key Financial Metrics
Is GRNT Expensive or Cheap?
P/E Ratio
GRNT trades at 18.14 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GRNT's PEG of 0.87 indicates potential undervaluation.
Price to Book
The market values Granite Ridge Resources, Inc at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.44 times EBITDA. This is generally considered low.
How Well Does GRNT Make Money?
Net Profit Margin
For every $100 in sales, Granite Ridge Resources, Inc keeps $8.38 as profit after all expenses.
Operating Margin
Core operations generate 16.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.92 in profit for every $100 of shareholder equity.
ROA
Granite Ridge Resources, Inc generates $3.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Granite Ridge Resources, Inc generates strong operating cash flow of $301.90M, reflecting robust business health.
Free Cash Flow
Granite Ridge Resources, Inc generates weak or negative free cash flow of $-92.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.70 in free cash annually.
FCF Yield
GRNT converts -13.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How GRNT Stacks Against Its Sector Peers
| Metric | GRNT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.14 | 20.19 | Better (Cheaper) |
| ROE | 5.92% | 1019.00% | Weak |
| Net Margin | 8.38% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.47 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.41 | 4.60 | Neutral |
| ROA | 3.35% | -11655350.00% (disorted) | Weak |
GRNT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Granite Ridge Resources, Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2795.05%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
427.70%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
4293.00%
Industry Style: Cyclical, Value, Commodity
High Growth