GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
GHM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. The financial health of GHM is average, but there are quite some concerns on its profitability. GHM shows excellent growth, but is valued quite expensive already.
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.
Of the past 5 years GHM 4 years were profitable.
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
Looking at the Return On Assets, with a value of 3.47%, GHM is in line with its industry, outperforming 47.66% of the companies in the same industry.
GHM has a Return On Equity (8.02%) which is in line with its industry peers.
GHM's Return On Invested Capital of 6.78% is in line compared to the rest of the industry. GHM outperforms 48.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.02% | ||
| ROIC | 6.78% |
ROA(3y)-0.88%
ROA(5y)0.06%
ROE(3y)-1.46%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.60%, GHM perfoms like the industry average, outperforming 46.09% of the companies in the same industry.
In the last couple of years the Profit Margin of GHM has remained more or less at the same level.
GHM has a Operating Margin of 5.65%. This is in the lower half of the industry: GHM underperforms 60.16% of its industry peers.
GHM's Operating Margin has declined in the last couple of years.
GHM has a worse Gross Margin (24.82%) than 63.28% of its industry peers.
In the last couple of years the Gross Margin of GHM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | 4.6% | ||
| GM | 24.82% |
OM growth 3Y7.23%
OM growth 5Y-5.6%
PM growth 3Y-0.08%
PM growth 5YN/A
GM growth 3Y1.33%
GM growth 5Y-1.72%
2. Health
2.1 Basic Checks
GHM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GHM has been increased compared to 1 year ago.
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 3.01 indicates that GHM is not in any danger for bankruptcy at the moment.
GHM has a Altman-Z score (3.01) which is in line with its industry peers.
The Debt to FCF ratio of GHM is 0.00, which is an excellent value as it means it would take GHM, only 0.00 years of fcf income to pay off all of its debts.
GHM has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. GHM outperforms 93.75% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
GHM's Debt to Equity ratio of 0.00 is amongst the best of the industry. GHM outperforms 86.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.64
WACC10.64%
2.3 Liquidity
A Current Ratio of 1.03 indicates that GHM should not have too much problems paying its short term obligations.
GHM has a Current ratio of 1.03. This is amonst the worse of the industry: GHM underperforms 88.28% of its industry peers.
A Quick Ratio of 0.76 indicates that GHM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, GHM is doing worse than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 185.29% over the past year.
GHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.04% yearly.
GHM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.21%.
GHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.11% yearly.
EPS 1Y (TTM)185.29%
EPS 3Y31.04%
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y23.92%
Revenue growth 5Y15.11%
Sales Q2Q%7.35%
3.2 Future
The Earnings Per Share is expected to grow by 49.88% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.75% on average over the next years. This is quite good.
EPS Next Y100.13%
EPS Next 2Y47.61%
EPS Next 3Y49.88%
EPS Next 5YN/A
Revenue Next Year13.92%
Revenue Next 2Y11.64%
Revenue Next 3Y10.75%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 37.91, the valuation of GHM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 67.19% of the companies listed in the same industry.
GHM is valuated rather expensively when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.25, which means the current valuation is very expensive for GHM.
67.19% 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 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.91 | ||
| Fwd PE | 31.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than 65.63% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GHM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.46 | ||
| EV/EBITDA | 21.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 49.88% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y47.61%
EPS Next 3Y49.88%
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.77
-0.27 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.32%
Inst Owner Change2.45%
Ins Owners5.44%
Ins Owner Change0%
Market Cap400.79M
Analysts80
Price Target53.72 (46.1%)
Short Float %2.35%
Short Ratio2.9
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)83.88%
Min EPS beat(2)48.51%
Max EPS beat(2)119.24%
EPS beat(4)4
Avg EPS beat(4)137.46%
Min EPS beat(4)48.51%
Max EPS beat(4)271.29%
EPS beat(8)8
Avg EPS beat(8)226.53%
EPS beat(12)11
Avg EPS beat(12)159.33%
EPS beat(16)11
Avg EPS beat(16)48.88%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)6.71%
Revenue beat(4)2
Avg Revenue beat(4)2.17%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)9.18%
Revenue beat(8)6
Avg Revenue beat(8)7.62%
Revenue beat(12)10
Avg Revenue beat(12)8.35%
Revenue beat(16)11
Avg Revenue beat(16)3.84%
PT rev (1m)0%
PT rev (3m)0.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.92%
EPS NY rev (1m)0%
EPS NY rev (3m)3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.91 | ||
| Fwd PE | 31.25 | ||
| P/S | 2.01 | ||
| P/FCF | 21.46 | ||
| P/OCF | 10.98 | ||
| P/B | 3.5 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 21.71 |
EPS(TTM)0.97
EY2.64%
EPS(NY)1.18
Fwd EY3.2%
FCF(TTM)1.71
FCFY4.66%
OCF(TTM)3.35
OCFY9.11%
SpS18.31
BVpS10.5
TBVpS5.32
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.02% | ||
| ROCE | 9.14% | ||
| ROIC | 6.78% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 22.68% | ||
| OM | 5.65% | ||
| PM (TTM) | 4.6% | ||
| GM | 24.82% | ||
| FCFM | 9.36% |
ROA(3y)-0.88%
ROA(5y)0.06%
ROE(3y)-1.46%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y27.24%
ROICexcg growth 5Y-2.45%
ROICexc growth 3Y-5.33%
ROICexc growth 5Y-18.31%
OM growth 3Y7.23%
OM growth 5Y-5.6%
PM growth 3Y-0.08%
PM growth 5YN/A
GM growth 3Y1.33%
GM growth 5Y-1.72%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 299.97% | ||
| Cap/Sales | 8.93% | ||
| Interest Coverage | 33.15 | ||
| Cash Conversion | 212.07% | ||
| Profit Quality | 203.56% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.01 |
F-Score7
WACC10.64%
ROIC/WACC0.64
Cap/Depr(3y)91.29%
Cap/Depr(5y)101.5%
Cap/Sales(3y)3.08%
Cap/Sales(5y)2.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)185.29%
EPS 3Y31.04%
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y100.13%
EPS Next 2Y47.61%
EPS Next 3Y49.88%
EPS Next 5YN/A
Revenue 1Y (TTM)11.21%
Revenue growth 3Y23.92%
Revenue growth 5Y15.11%
Sales Q2Q%7.35%
Revenue Next Year13.92%
Revenue Next 2Y11.64%
Revenue Next 3Y10.75%
Revenue Next 5YN/A
EBIT growth 1Y112.06%
EBIT growth 3Y32.88%
EBIT growth 5Y8.67%
EBIT Next Year232.09%
EBIT Next 3Y78.93%
EBIT Next 5YN/A
FCF growth 1Y1.07%
FCF growth 3YN/A
FCF growth 5Y29.29%
OCF growth 1Y71.57%
OCF growth 3YN/A
OCF growth 5Y30.71%