GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
Taking everything into account, GHM scores 4 out of 10 in our fundamental rating. GHM was compared to 128 industry peers in the Machinery industry. GHM has only an average score on both its financial health and profitability. GHM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make GHM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year GHM was profitable.
GHM had a positive operating cash flow in the past year.
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
GHM has a Return On Assets (4.63%) which is comparable to the rest of the industry.
With a Return On Equity value of 10.23%, GHM perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.59%, GHM is doing good in the industry, outperforming 64.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHM is significantly below the industry average of 10.72%.
The 3 year average ROIC (5.20%) for GHM is below the current ROIC(9.59%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 5.83%, GHM perfoms like the industry average, outperforming 54.69% 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 (7.26%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GHM has grown nicely.
With a Gross Margin value of 25.18%, GHM is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
GHM's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GHM 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.
The debt/assets ratio for GHM has been reduced compared to a year ago.
2.2 Solvency
GHM has an Altman-Z score of 3.60. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.60, GHM perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
The Debt to FCF ratio of GHM is 0.01, which is an excellent value as it means it would take GHM, only 0.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.01, GHM belongs to the best of the industry, outperforming 92.97% 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 85.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.95
WACC10.12%
2.3 Liquidity
GHM has a Current Ratio of 1.04. 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 (1.04) is worse than 87.50% of its industry peers.
GHM has a Quick Ratio of 1.04. This is a bad value and indicates that GHM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GHM (0.74) is worse than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 131.48% 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
Looking at the last year, GHM shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
Based on estimates for the next years, GHM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.91% on average per year.
GHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.44% yearly.
EPS Next Y-11.52%
EPS Next 2Y18.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.54%
Revenue Next 2Y10.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 36.93 indicates a quite expensive valuation of GHM.
GHM's Price/Earnings ratio is a bit more expensive when compared to the industry. GHM is more expensive than 67.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GHM to the average of the S&P500 Index (26.34), we can say GHM is valued slightly more expensively.
The Price/Forward Earnings ratio is 41.74, which means the current valuation is very expensive for GHM.
Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than 69.53% of the companies in the same industry.
GHM is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.93 | ||
| Fwd PE | 41.74 |
4.2 Price Multiples
68.75% of the companies in the same industry are cheaper than GHM, based on the Enterprise Value to EBITDA ratio.
GHM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GHM is more expensive than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.89 | ||
| EV/EBITDA | 22.75 |
4.3 Compensation for Growth
GHM's earnings are expected to grow with 18.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y18.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.16
-0.09 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner Change1.05%
Ins Owners5.88%
Ins Owner Change6.84%
Market Cap503.14M
Analysts80
Price Target53.72 (16.38%)
Short Float %2.4%
Short Ratio3.28
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)9.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.93 | ||
| Fwd PE | 41.74 | ||
| P/S | 2.4 | ||
| P/FCF | 93.89 | ||
| P/OCF | 20.69 | ||
| P/B | 4.21 | ||
| P/tB | 7.89 | ||
| EV/EBITDA | 22.75 |
EPS(TTM)1.25
EY2.71%
EPS(NY)1.11
Fwd EY2.4%
FCF(TTM)0.49
FCFY1.07%
OCF(TTM)2.23
OCFY4.83%
SpS19.26
BVpS10.97
TBVpS5.85
PEG (NY)N/A
PEG (5Y)1.06
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 | 3.6 |
F-Score8
WACC10.12%
ROIC/WACC0.95
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-11.52%
EPS Next 2Y18.91%
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 Year11.54%
Revenue Next 2Y10.44%
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%