GRNTGranite Ridge Resources, Inc.
Is the business good?
The checks split: earnings fully cash-backed (8.8×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GRNT?
Granite Ridge Resources, Inc. earns 3.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.0 points below what the capital costs: growth destroys value
- Operating margin
- 7.5%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 8.76×
Cash conversion · 4.84× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.18%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −40% |
| FY2021 | 49% |
| FY2022 | 61% |
| FY2023 | 23% |
| FY2024 | 16% |
| FY2025 | 10% |
Details›
- Operating margin12 months to Q2 2026
- 7.5%
- Net margin12 months to Q2 2026
- −5.6%
- Free cash flow margin
- −0.53%
- Revenue, trailing twelve months
- $496M
- Free cash flow, trailing twelve months
- −$2.6M
- Net income, trailing twelve months
- −$28M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.