Granite Ridge Resources Inc. Common Stock (GRNT)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business: Granite Ridge is a cyclical oil-and-gas producer, a price taker with assets in six U.S. basins. There is no obvious moat here; results depend on the cycle. The filed numbers are volatile. Fiscal 2023 net income was $81.1M on revenue of $394.1M, then fiscal 2024 net income fell to $18.8M on revenue of $380.0M, and fiscal 2025 recovered to $24.4M on revenue of $450.3M. In fiscal Q1 2026, the quarter ended 2026-03-31, it lost $47.0M, but in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $30.0M on revenue of $149.3M. That swing makes trailing figures unreliable. FairStock calculations at the 2026-10-13 close of $5.09 show a negative P/E of -23.14, P/B of 1.19, EV/EBITDA of 4.90, and a dividend yield of 8.98%. The low EV/EBITDA and P/B catch my eye, but the balance sheet and cash flow do not. Trailing free cash flow is -$102.4M, FCF yield -15.3%, D/E 0.82, and Altman Z-Score 0.78, which warns of distress. A Piotroski F-Score of 8/9 is a positive accounting signal, but high dividends with negative free cash flow are dangerous. Cyclical E&Ps can look cheap at the top or bottom of the cycle; here the 31/100 FairStock score and cash burn suggest the market is right to demand a margin of safety. I would want to see sustained free cash flow and debt reduction before trusting the low multiple.

In plain English: Granite Ridge Resources is a small oil and gas producer with assets in six U.S. basins. Its results are very uneven: it lost money in the first quarter of 2026 but made $30.0 million in the second quarter of 2026, and it used more cash than it generated over the last year. At the October 13, 2026 closing price of $5.09, the stock looks cheap on some simple measures, but the weak cash flow and high debt make that cheapness risky rather than clearly safe.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer