Granite Real Estate Investment Trust (GRP-UN)
Valuation Overview•Is Granite Real Estate Investment Trust Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 70/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
GRP-UN demonstrates strong business quality with robust profitability and healthy margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company demonstrates solid revenue growth (13.1% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 75.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $153.0M | +9.2% | +13.1% | +15.8% | +10.6% | |
| EBITDA | $113.3M | — | +14.0% | — | — | |
| Net Income | $68.0M | +163.9% | -34.9% | — | +17.8% | |
| EPS (Diluted) | $1.11 | +166.8% | -34.7% | -6.0% | +14.4% | |
| Free Cash Flow | $121.9M | +8.2% | +9.0% | +17.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 82.2% | 83.3% | 84.1% | 88.4% |
| Operating Margin | 75.6% | 76.2% | 75.7% | 78.4% |
| Net Margin | 48.0% | 41.3% | 116.6% | 128.6% |
| FCF Margin | 62.0% | 60.1% | 59.9% | 56.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'25Latest | — | $1.14 | — | ||
| Q2'25 | — | $0.49 | — | ||
| Q1'25 | — | $0.92 | — | ||
| Q4'24 | — | $1.31 | — | ||
| Q3'24 | — | $0.88 | — | ||
| Q2'24 | — | $1.03 | — | ||
| Q1'24 | — | $0.37 | — | ||
| Q4'23 | — | $0.38 | — |
Total return is +25.1% (1Y), outperforming the benchmark by +4.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +10.8% | +3.5% | — |
| 1Y | +25.1% | +4.3% | +4.7% |
| 3YCAGR | +8.2% | -10.3% | +12.5% |
| 5YCAGR | +3.0% | -8.6% | +17.9% |
| 10YCAGR | +11.5% | -2.4% | — |
The S&P 500 is at 31.0x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Granite Real Estate Investment Trust (GRP-UN) valuation, health, and returns.
Granite Real Estate Investment Trust is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +20.2% upside to DCF intrinsic value of $78.25)
Granite Real Estate Investment Trust has multiple valuation anchors: DCF Intrinsic Value: $78.25 | Peer Relative Fair Value: $114.98. A convergence of these signals offers higher conviction.
Granite Real Estate Investment Trust displays good financial health with a composite quality score of 70/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 3.8%.
Granite Real Estate Investment Trust pays a 3.7% dividend yield, covered by a 58% payout ratio with 1 years of growth, supplemented by a 0.8% buyback yield.
Granite Real Estate Investment Trust's current growth trajectory is Decelerating. The company achieved +9.2% 1Y revenue growth and +166.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +13.1%.
Wall Street consensus is Buy based on 2 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Granite Real Estate Investment Trust include: -20.0% 1-year max drawdown. Volatility risk is characterized by a beta of 0.76x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.