GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GHM. GHM was compared to 127 industry peers in the Machinery industry. GHM has an average financial health and profitability rating. GHM is valued quite expensive, but it does show an excellent growth. This makes GHM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year GHM was profitable.
In the past year GHM had a positive cash flow from operations.
GHM had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: GHM reported negative operating cash flow in multiple years.
1.2 Ratios
GHM has a Return On Assets of 4.63%. This is comparable to the rest of the industry: GHM outperforms 48.82% of its industry peers.
GHM's Return On Equity of 10.23% is in line compared to the rest of the industry. GHM outperforms 53.54% of its industry peers.
The Return On Invested Capital of GHM (9.59%) is better than 64.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GHM is significantly below the industry average of 10.83%.
The last Return On Invested Capital (9.59%) for GHM is above the 3 year average (5.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 10.23% | ||
| ROIC | 9.59% |
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 5.83%, GHM is in line with its industry, outperforming 51.97% of the companies in the same industry.
In the last couple of years the Profit Margin of GHM has grown nicely.
GHM has a Operating Margin (7.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of GHM has grown nicely.
GHM has a worse Gross Margin (25.18%) than 65.35% of its industry peers.
In the last couple of years the Gross Margin of GHM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.26% | ||
| PM (TTM) | 5.83% | ||
| GM | 25.18% |
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.
Compared to 1 year ago, GHM has more shares outstanding
The number of shares outstanding for GHM has been increased compared to 5 years ago.
GHM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.11 indicates that GHM is not in any danger for bankruptcy at the moment.
GHM has a Altman-Z score of 4.11. This is in the better half of the industry: GHM outperforms 66.93% of its industry peers.
GHM has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.01, GHM belongs to the best of the industry, outperforming 92.91% 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's Debt to Equity ratio of 0.00 is amongst the best of the industry. GHM outperforms 85.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.06
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GHM should not have too much problems paying its short term obligations.
GHM's Current ratio of 1.04 is on the low side compared to the rest of the industry. GHM is outperformed by 88.98% of its industry peers.
A Quick Ratio of 0.74 indicates that GHM may have some problems paying its short term obligations.
The Quick ratio of GHM (0.74) is worse than 81.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
GHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 131.48%, which is quite impressive.
Measured over the past years, GHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.88% on average per year.
GHM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
Measured over the past years, GHM shows a quite strong growth in Revenue. The Revenue has been growing by 18.30% on average per year.
EPS 1Y (TTM)131.48%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%186.67%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%20.94%
3.2 Future
The Earnings Per Share is expected to grow by 23.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.41% on average over the next years. This is quite good.
EPS Next Y-0.62%
EPS Next 2Y23.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.08%
Revenue Next 2Y11.41%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 44.41 indicates a quite expensive valuation of GHM.
67.72% of the companies in the same industry are cheaper than GHM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.82. GHM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 44.68, which means the current valuation is very expensive for GHM.
69.29% of the companies in the same industry are cheaper than GHM, based on the Price/Forward Earnings ratio.
GHM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.41 | ||
| Fwd PE | 44.68 |
4.2 Price Multiples
72.44% of the companies in the same industry are cheaper than GHM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GHM is valued a bit more expensive than the industry average as 70.87% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 113.73 | ||
| EV/EBITDA | 28.63 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GHM's earnings are expected to grow with 23.90% in the coming years.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y23.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.51
-1.64 (-2.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner Change0.41%
Ins Owners5.88%
Ins Owner Change6.42%
Market Cap609.50M
Analysts80
Price Target60.18 (8.41%)
Short Float %2.26%
Short Ratio2.22
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)86.29%
Min EPS beat(2)48.51%
Max EPS beat(2)124.08%
EPS beat(4)4
Avg EPS beat(4)100.66%
Min EPS beat(4)48.51%
Max EPS beat(4)124.08%
EPS beat(8)8
Avg EPS beat(8)241.92%
EPS beat(12)12
Avg EPS beat(12)197.09%
EPS beat(16)12
Avg EPS beat(16)59.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)5.55%
Revenue beat(4)2
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)6.71%
Revenue beat(8)6
Avg Revenue beat(8)6.22%
Revenue beat(12)10
Avg Revenue beat(12)8.52%
Revenue beat(16)11
Avg Revenue beat(16)4.02%
PT rev (1m)2.91%
PT rev (3m)12.03%
EPS NQ rev (1m)8.7%
EPS NQ rev (3m)0%
EPS NY rev (1m)12.33%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)3.7%
Revenue NQ rev (3m)4.12%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.41 | ||
| Fwd PE | 44.68 | ||
| P/S | 2.9 | ||
| P/FCF | 113.73 | ||
| P/OCF | 25.07 | ||
| P/B | 5.1 | ||
| P/tB | 9.56 | ||
| EV/EBITDA | 28.63 |
EPS(TTM)1.25
EY2.25%
EPS(NY)1.24
Fwd EY2.24%
FCF(TTM)0.49
FCFY0.88%
OCF(TTM)2.21
OCFY3.99%
SpS19.12
BVpS10.89
TBVpS5.8
PEG (NY)N/A
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 10.23% | ||
| ROCE | 11.9% | ||
| ROIC | 9.59% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 24.28% | ||
| OM | 7.26% | ||
| PM (TTM) | 5.83% | ||
| GM | 25.18% | ||
| FCFM | 2.55% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 319.36% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 51.12 | ||
| Cash Conversion | 114.87% | ||
| Profit Quality | 43.82% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.11 |
F-Score8
WACC9.06%
ROIC/WACC1.06
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)131.48%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%186.67%
EPS Next Y-0.62%
EPS Next 2Y23.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%20.94%
Revenue Next Year14.08%
Revenue Next 2Y11.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y109.62%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year95.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.53%
OCF growth 3YN/A
OCF growth 5Y68.5%