Grnt.K

Granite Ridge Resources Inc maintains a capital structure characterized by significant leverage relative to its equity base. The company reports total assets of $1.17 billion against total liabilities of $562.3 million and total equity of $605.8 million. Long-term debt stands at $382.5 million, resulting in a debt-to-equity ratio of 0.63. The firm generates substantial operating cash flow of $296.4 million, which exceeds its net income of $24.4 million, indicating strong cash conversion despite accounting profits. However, the risk assessment flags that net cash is negative after subtracting total debt, suggesting reliance on debt financing for liquidity needs. The current market capitalization is $595.1 million, with a price-to-book ratio of 0.98, implying the market values the company near its book value.

Profitability metrics present a mixed picture, with positive operating income of $46.4 million and net income of $24.4 million, yet negative return on equity (-5.36%) and negative return on assets (-2.78%). These negative returns suggest that the company’s equity and asset base are not generating positive returns in the current period, potentially due to non-cash charges or prior period adjustments not reflected in the simple net income figure. The EV/EBITDA ratio is exceptionally high at 50.95, while the EV/Revenue ratio is 2.15, indicating that the market prices the company at a premium relative to its current earnings and revenue generation. Without cohort median data, direct comparison to industry peers is not possible, but the high valuation multiples suggest expectations of future growth or asset value realization.

Revenue concentration and geographic exposure details are not provided in the available data. The company reports total revenue of $450.3 million for the latest normalized period. In the absence of segment or geographic breakdowns, the revenue mix cannot be analyzed for concentration risk. The business appears to be driven by its core energy activities within the Oil, Gas & Consumable Fuels sector, but specific product or regional contributions remain undisclosed in the current dataset.

Growth trajectory analysis is limited by the absence of historical period data. The current revenue figure of $450.3 million serves as the baseline for performance evaluation. Without 5-year annual or 8-quarter quarterly data, trends in revenue expansion or contraction cannot be quantified. The company’s ability to sustain or grow its current revenue base remains an open question, dependent on future operational performance and market conditions in the energy sector.

Risk factors include medium liquidity risk and low dilution risk, as assessed in the risk profile. The key flag of negative net cash after debt subtraction highlights potential refinancing or liquidity pressures, although the strong operating cash flow of $296.4 million provides a buffer. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 130.5 million. The high EV/EBITDA multiple may also pose valuation risk if earnings do not improve to justify the premium.

Recent events include analyst coverage updates, with a mean price target of $8.00 USD and a median price target of $8.00 USD, indicating potential upside from the current market price of $4.56 USD. The mean recommendation is 2.33, leaning towards a buy rating, with 1 strong buy, 2 buy, and 3 hold recommendations. News observations indicate reconciler activities for analysis jobs, but no specific corporate actions or material news events are disclosed in the provided data.

Revenue $128.3M, +4,3% YoY; Operating income −64,4% YoY.

• ▍Revenue $128.3M, +4,3% YoY
• ▍Operating income −64,4% YoY
• ▍Net income −579,3% YoY
• ▍Free cash flow −32,7% YoY
• ▍Net margin -36.7%

Revenue $105.5M, −0,8% YoY; Operating income −406,6% YoY.

• ▍Revenue $105.5M, −0,8% YoY
• ▍Operating income −406,6% YoY
• ▍Net income −115,7% YoY
• ▍Free cash flow −42,3% YoY
• ▍Net margin -23.8%

Revenue $112.7M, +19,8% YoY; Operating income −20,6% YoY.

• ▍Revenue $112.7M, +19,8% YoY
• ▍Operating income −20,6% YoY
• ▍Net income +60,4% YoY
• ▍Free cash flow +50,3% YoY
• ▍Net margin 12.9%

Revenue $109.2M, +20,5% YoY; Operating income −5,3% YoY.

• ▍Revenue $109.2M, +20,5% YoY
• ▍Operating income −5,3% YoY
• ▍Net income +391,7% YoY
• ▍Free cash flow +15,8% YoY
• ▍Net margin 23.0%

Revenue $122.9M; Operating income $42.4M.

• ▍Revenue $122.9M
• ▍Operating income $42.4M
• ▍Net margin 8.0%

Revenue $106.3M; Operating income -$7.2M.

• ▍Revenue $106.3M
• ▍Operating income -$7.2M
• ▍Net margin -10.9%

Revenue $94.1M; Operating income $24.7M.

• ▍Revenue $94.1M
• ▍Operating income $24.7M
• ▍Net margin 9.6%

Revenue $90.7M; Operating income $21.9M.

• ▍Revenue $90.7M
• ▍Operating income $21.9M
• ▍Net margin 5.6%

Revenue $450.3M, +18,5% YoY; Operating income −21,2% YoY.

• ▍Revenue $450.3M, +18,5% YoY
• ▍Operating income −21,2% YoY
• ▍Net income +29,8% YoY
• ▍Free cash flow −13,2% YoY
• ▍Net margin 5.4%

Revenue $380.0M, −3,6% YoY; Operating income −35,0% YoY.

• ▍Revenue $380.0M, −3,6% YoY
• ▍Operating income −35,0% YoY
• ▍Net income −76,9% YoY
• ▍Free cash flow −18,9% YoY
• ▍Net margin 4.9%

Revenue $394.1M, −20,8% YoY; Operating income −70,0% YoY.

• ▍Revenue $394.1M, −20,8% YoY
• ▍Operating income −70,0% YoY
• ▍Net income −69,1% YoY
• ▍Free cash flow −243,4% YoY
• ▍Net margin 20.6%