GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - NYSE:GHM - US3845561063 - Common Stock
62.14 USD
-1.81 (-2.83%)
63.45 USD
+1.31 (+2.11%)
Taking everything into account, GHM scores 5 out of 10 in our fundamental rating. GHM was compared to 130 industry peers in the Machinery industry. Both the profitability and the financial health of GHM get a neutral evaluation. Nothing too spectacular is happening here. GHM is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
GHM had positive earnings in the past year.
In the past year GHM had a positive cash flow from operations.
Of the past 5 years GHM 4 years were profitable.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
GHM has a better Return On Assets (5.49%) than 60.77% of its industry peers.
GHM has a Return On Equity of 11.23%. This is in the better half of the industry: GHM outperforms 63.08% of its industry peers.
With a decent Return On Invested Capital value of 10.42%, GHM is doing good in the industry, outperforming 73.85% of the companies in the same industry.
GHM had an Average Return On Invested Capital over the past 3 years of 5.20%. This is significantly below the industry average of 10.24%.
The last Return On Invested Capital (10.42%) for GHM is above the 3 year average (5.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.23% | ||
| ROIC | 10.42% |
ROA(3y)2.26%
ROA(5y)0.73%
ROE(3y)4.99%
ROE(5y)1.66%
ROIC(3y)5.2%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.43%, GHM is in line with its industry, outperforming 54.62% of the companies in the same industry.
In the last couple of years the Profit Margin of GHM has grown nicely.
The Operating Margin of GHM (7.88%) is comparable to the rest of the industry.
GHM's Operating Margin has improved in the last couple of years.
GHM has a Gross Margin of 25.63%. This is in the lower half of the industry: GHM underperforms 64.62% of its industry peers.
GHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.88% | ||
| PM (TTM) | 6.43% | ||
| GM | 25.63% |
OM growth 3YN/A
OM growth 5Y45.74%
PM growth 3YN/A
PM growth 5Y22.68%
GM growth 3Y50.35%
GM growth 5Y4.74%
2. Health
2.1 Basic Checks
GHM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GHM has more shares outstanding than it did 1 year ago.
GHM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GHM has an improved debt to assets ratio.
2.2 Solvency
GHM has an Altman-Z score of 4.83. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.83, GHM is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
GHM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GHM has a better Debt to Equity ratio (0.00) than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.83 |
ROIC/WACC1.08
WACC9.64%
2.3 Liquidity
GHM has a Current Ratio of 1.05. This is a normal value and indicates that GHM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GHM (1.05) is worse than 86.15% of its industry peers.
GHM has a Quick Ratio of 1.05. This is a bad value and indicates that GHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, GHM is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.70% over the past year.
The Earnings Per Share has been growing by 34.88% on average over the past years. This is a very strong growth
The Revenue has grown by 14.64% in the past year. This is quite good.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
EPS 1Y (TTM)153.7%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%36.36%
Revenue 1Y (TTM)14.64%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 23.89% on average over the next years. This is a very strong growth
GHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.22% yearly.
EPS Next Y-1.99%
EPS Next 2Y23.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.86%
Revenue Next 2Y11.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
GHM is valuated quite expensively with a Price/Earnings ratio of 45.36.
GHM's Price/Earnings ratio is a bit more expensive when compared to the industry. GHM is more expensive than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of GHM to the average of the S&P500 Index (25.67), we can say GHM is valued expensively.
GHM is valuated quite expensively with a Price/Forward Earnings ratio of 32.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 66.15% of the companies listed in the same industry.
GHM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.36 | ||
| Fwd PE | 32.39 |
4.2 Price Multiples
72.31% of the companies in the same industry are cheaper than GHM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.17 |
4.3 Compensation for Growth
GHM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 23.89% in the coming years.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y23.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.14
-1.81 (-2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change-0.33%
Ins Owners5.68%
Ins Owner Change6.52%
Market Cap682.30M
Revenue(TTM)215.43M
Net Income(TTM)13.86M
Analysts80
Price Target65.79 (5.87%)
Short Float %4.08%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.15%
Min EPS beat(2)78.22%
Max EPS beat(2)124.08%
EPS beat(4)4
Avg EPS beat(4)92.51%
Min EPS beat(4)48.51%
Max EPS beat(4)124.08%
EPS beat(8)8
Avg EPS beat(8)137.09%
EPS beat(12)12
Avg EPS beat(12)185.37%
EPS beat(16)13
Avg EPS beat(16)90.92%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)5.55%
Revenue beat(4)2
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)6.71%
Revenue beat(8)5
Avg Revenue beat(8)3.65%
Revenue beat(12)9
Avg Revenue beat(12)8.1%
Revenue beat(16)11
Avg Revenue beat(16)4.85%
PT rev (1m)8.4%
PT rev (3m)9.32%
EPS NQ rev (1m)-4.11%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)-5.6%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.36 | ||
| Fwd PE | 32.39 | ||
| P/S | 3.17 | ||
| P/FCF | N/A | ||
| P/OCF | 51.14 | ||
| P/B | 5.53 | ||
| P/tB | 10.03 | ||
| EV/EBITDA | 29.17 |
EPS(TTM)1.37
EY2.2%
EPS(NY)1.92
Fwd EY3.09%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)1.22
OCFY1.96%
SpS19.62
BVpS11.24
TBVpS6.2
PEG (NY)N/A
PEG (5Y)1.3
Graham Number18.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.23% | ||
| ROCE | 12.93% | ||
| ROIC | 10.42% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.98% | ||
| OM | 7.88% | ||
| PM (TTM) | 6.43% | ||
| GM | 25.63% | ||
| FCFM | N/A |
ROA(3y)2.26%
ROA(5y)0.73%
ROE(3y)4.99%
ROE(5y)1.66%
ROIC(3y)5.2%
ROIC(5y)N/A
ROICexc(3y)6.2%
ROICexc(5y)N/A
ROICexgc(3y)13.67%
ROICexgc(5y)N/A
ROCE(3y)6.46%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y50.83%
ROICexc growth 3YN/A
ROICexc growth 5Y29.97%
OM growth 3YN/A
OM growth 5Y45.74%
PM growth 3YN/A
PM growth 5Y22.68%
GM growth 3Y50.35%
GM growth 5Y4.74%
F-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 380.01% | ||
| Cap/Sales | 10.67% | ||
| Interest Coverage | 54.75 | ||
| Cash Conversion | 57.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.83 |
F-Score7
WACC9.64%
ROIC/WACC1.08
Cap/Depr(3y)183.94%
Cap/Depr(5y)140.8%
Cap/Sales(3y)5.46%
Cap/Sales(5y)4.1%
Profit Quality(3y)999.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)153.7%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%36.36%
EPS Next Y-1.99%
EPS Next 2Y23.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.64%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%11.08%
Revenue Next Year11.86%
Revenue Next 2Y11.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y149.2%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year102.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-152.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-42.5%
OCF growth 3YN/A
OCF growth 5Y68.5%
GRAHAM CORP / GHM FAQ
Can you provide the ChartMill fundamental rating for GRAHAM CORP?
ChartMill assigns a fundamental rating of 5 / 10 to GHM.
Can you provide the valuation status for GRAHAM CORP?
ChartMill assigns a valuation rating of 1 / 10 to GRAHAM CORP (GHM). This can be considered as Overvalued.
How profitable is GRAHAM CORP (GHM) stock?
GRAHAM CORP (GHM) has a profitability rating of 6 / 10.
What is the financial health of GRAHAM CORP (GHM) stock?
The financial health rating of GRAHAM CORP (GHM) is 4 / 10.
Can you provide the expected EPS growth for GHM stock?
The Earnings per Share (EPS) of GRAHAM CORP (GHM) is expected to decline by -1.99% in the next year.