GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
Overall GHM gets a fundamental rating of 5 out of 10. We evaluated GHM against 128 industry peers in the Machinery industry. GHM has only an average score on both its financial health and profitability. GHM is valued quite expensive, but it does show an excellent growth. These ratings could make GHM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
GHM had positive earnings in the past year.
GHM had a positive operating cash flow in the past year.
GHM had positive earnings in 4 of the past 5 years.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.63%, GHM is in line with its industry, outperforming 49.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.23%, GHM is in line with its industry, outperforming 53.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.59%, GHM is in the better half of the industry, outperforming 64.57% 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 10.82%.
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
With a Profit Margin value of 5.83%, GHM perfoms like the industry average, outperforming 51.97% of the companies in the same industry.
GHM's Profit Margin has improved in the last couple of years.
GHM has a Operating Margin (7.26%) which is comparable to the rest of the industry.
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.
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) just above the Cost of Capital (WACC), GHM is creating some value.
Compared to 1 year ago, GHM has more shares outstanding
Compared to 5 years ago, GHM has more shares outstanding
Compared to 1 year ago, GHM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.04 indicates that GHM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.04, GHM is in the better half of the industry, outperforming 66.93% 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 92.91% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
The Debt to Equity ratio of GHM (0.00) is better than 85.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.08
WACC8.91%
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.
With a Current ratio value of 1.04, GHM is not doing good in the industry: 88.19% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.74, GHM is doing worse than 80.31% of the companies in the same industry.
| 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.
GHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.88% yearly.
Looking at the last year, GHM shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
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
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.
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
GHM is valuated quite expensively with a Price/Earnings ratio of 44.41.
67.72% of the companies in the same industry are cheaper than GHM, based on the Price/Earnings ratio.
GHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 44.68 indicates a quite expensive valuation of GHM.
69.29% of the companies in the same industry are cheaper than GHM, based on the Price/Forward Earnings ratio.
GHM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.41 | ||
| Fwd PE | 44.68 |
4.2 Price Multiples
GHM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GHM is more expensive than 72.44% of the companies in the same industry.
70.87% of the companies in the same industry are cheaper than GHM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 113.73 | ||
| EV/EBITDA | 27.78 |
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
No dividends for GHM!.
| 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 Change-1.17%
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)5.63%
EPS NQ rev (3m)0%
EPS NY rev (1m)12.33%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)1.52%
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 | 27.78 |
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 | 4.04 |
F-Score8
WACC8.91%
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)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%