GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - US3845561063 - Common Stock
49.14 USD
-1.01 (-2.01%)
Overall GHM gets a fundamental rating of 5 out of 10. We evaluated GHM against 127 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 shows excellent growth, but is valued quite expensive already. With these ratings, GHM could be worth investigating further 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.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
GHM has a Return On Assets (4.63%) which is in line with its industry peers.
GHM's Return On Equity of 10.23% is in line compared to the rest of the industry. GHM outperforms 57.48% of its industry peers.
The Return On Invested Capital of GHM (9.59%) is better than 67.72% of its industry peers.
GHM had an Average Return On Invested Capital over the past 3 years of 5.20%. This is significantly below the industry average of 10.48%.
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 51.18% of the companies in the same industry.
GHM's Profit Margin has improved in the last couple of years.
GHM has a Operating Margin of 7.26%. This is comparable to the rest of the industry: GHM outperforms 46.46% of its industry peers.
In the last couple of years the Operating Margin of GHM has grown nicely.
Looking at the Gross Margin, with a value of 25.18%, GHM is doing worse than 65.35% of the companies in the same industry.
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
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.
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
GHM has an Altman-Z score of 3.79. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GHM (3.79) is better than 64.57% of its industry peers.
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 92.13% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, GHM belongs to the top of the industry, outperforming 86.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.96
WACC9.94%
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 88.19% 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.
With a Quick ratio value of 0.74, GHM is not doing good in the industry: 81.10% of the companies in the same industry are doing better.
| 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 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
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)153.7%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%36.36%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%11.08%
3.2 Future
GHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.88% yearly.
Based on estimates for the next years, GHM will show a quite strong growth in Revenue. The Revenue will grow by 11.22% on average per year.
EPS Next Y17.97%
EPS Next 2Y24.88%
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
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
With a Price/Earnings ratio of 35.87, GHM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 68.50% of the companies listed in the same industry.
GHM is valuated rather expensively when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
GHM is valuated quite expensively with a Price/Forward Earnings ratio of 25.21.
The rest of the industry has a similar Price/Forward Earnings ratio as GHM.
When comparing the Price/Forward Earnings ratio of GHM to the average of the S&P500 Index (22.80), we can say GHM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 25.21 |
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 70.08% of the companies in the same industry.
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 | 100.68 | ||
| EV/EBITDA | 25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GHM does not grow enough to justify the current Price/Earnings ratio.
GHM's earnings are expected to grow with 24.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)1.03
EPS Next 2Y24.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:GHM (8/28/2025, 2:35:52 PM)
49.14
-1.01 (-2.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.2%
Inst Owner Change-0.62%
Ins Owners5.67%
Ins Owner Change6.42%
Market Cap539.56M
Analysts80
Price Target60.69 (23.5%)
Short Float %2.04%
Short Ratio1.65
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)0.85%
PT rev (3m)12.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)18.7%
EPS NY rev (3m)25.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.12%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 25.21 | ||
| P/S | 2.57 | ||
| P/FCF | 100.68 | ||
| P/OCF | 22.19 | ||
| P/B | 4.51 | ||
| P/tB | 8.47 | ||
| EV/EBITDA | 25 |
EPS(TTM)1.37
EY2.79%
EPS(NY)1.95
Fwd EY3.97%
FCF(TTM)0.49
FCFY0.99%
OCF(TTM)2.21
OCFY4.51%
SpS19.12
BVpS10.89
TBVpS5.8
PEG (NY)2
PEG (5Y)1.03
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 | 3.79 |
F-Score8
WACC9.94%
ROIC/WACC0.96
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 Y17.97%
EPS Next 2Y24.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
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 1Y109.62%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year105.76%
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%