Granite Construction currently trades at $141 and has been a dream stock for shareholders. It’s returned 249% since May 2021, more than tripling the S&P 500’s 78.6% gain. The company has also beaten the index over the past six months as its stock price is up 39% thanks to its solid quarterly results.

Following the strength, is GVA a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.

Why Is Granite Construction a Good Business?

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

1. Long-Term Revenue Growth Shows Momentum

A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Granite Construction’s 7.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.

2. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Granite Construction’s EPS grew at 35.1% compounded annual growth rate over the last five years, higher than its 7.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

3. Increasing Free Cash Flow Margin Juices Financials

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

As you can see below, Granite Construction’s margin expanded by 11.5 percentage points over the last five years. The company’s improvement shows it’s heading in the right direction, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Granite Construction’s free cash flow margin for the trailing 12 months was 6.5%.

Final Judgment

These are just a few reasons why we think Granite Construction is a high-quality business, and with its shares topping the market in recent months, the stock trades at $141 per share (or a forward price-to-sales ratio of 1.2×). Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More Than Granite Construction

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Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.