GRAHAM CORP (GHM)
US3845561063 - Common Stock
GHM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While GHM seems to be doing ok healthwise, there are quite some concerns on its profitability. GHM is valued quite expensively, but it does show have an excellent growth rating.
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.
The reported net income has been mixed in the past 5 years: GHM reported negative net income in multiple years.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 1.25%, GHM is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 2.64%, GHM is doing worse than 62.02% of the companies in the same industry.
GHM has a Return On Invested Capital of 3.00%. This is in the lower half of the industry: GHM underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 2.64% | ||
| ROIC | 3% |
ROA(3y)-0.98%
ROA(5y)-0.37%
ROE(3y)-2.08%
ROE(5y)-0.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GHM has a Profit Margin of 1.52%. This is in the lower half of the industry: GHM underperforms 62.79% of its industry peers.
GHM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.96%, GHM is doing worse than 69.77% of the companies in the same industry.
In the last couple of years the Operating Margin of GHM has declined.
GHM has a worse Gross Margin (19.53%) than 68.22% of its industry peers.
GHM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 1.52% | ||
| GM | 19.53% |
OM growth 3Y-6.88%
OM growth 5Y-16.49%
PM growth 3Y-50.48%
PM growth 5YN/A
GM growth 3Y-6.81%
GM growth 5Y-6.25%
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 remains at a similar level 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 3.06. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
GHM has a Altman-Z score of 3.06. This is comparable to the rest of the industry: GHM outperforms 50.39% of its industry peers.
GHM has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.17, GHM belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that GHM is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.03, GHM belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.33
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.11 indicates that GHM should not have too much problems paying its short term obligations.
The Current ratio of GHM (1.11) is worse than 87.60% of its industry peers.
GHM has a Quick Ratio of 1.11. 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 0.81, GHM is not doing good in the industry: 75.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.79% over the past year.
Measured over the past years, GHM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.89% on average per year.
Looking at the last year, GHM shows a quite strong growth in Revenue. The Revenue has grown by 16.69% in the last year.
GHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.18% yearly.
EPS 1Y (TTM)108.79%
EPS 3Y-34.14%
EPS 5Y-15.89%
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)16.69%
Revenue growth 3Y20.14%
Revenue growth 5Y15.18%
Revenue growth Q2Q9.9%
3.2 Future
The Earnings Per Share is expected to grow by 110.61% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.60% on average over the next years. This is quite good.
EPS Next Y291.38%
EPS Next 2Y104.11%
EPS Next 3Y110.61%
EPS Next 5YN/A
Revenue Next Year20.18%
Revenue Next 2Y14.58%
Revenue Next 3Y12.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 82.41, which means the current valuation is very expensive for GHM.
70.54% 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 24.76.
The Price/Forward Earnings ratio is 84.07, 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 the industry average as 65.89% of the companies are valued more cheaply.
GHM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.41 | ||
| Fwd PE | 84.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than the industry average as 72.09% of the companies are valued more cheaply.
73.64% of the companies in the same industry are more expensive than GHM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.96 | ||
| EV/EBITDA | 26.92 |
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.
GHM's earnings are expected to grow with 110.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y104.11%
EPS Next 3Y110.61%
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GRAHAM CORP
NYSE:GHM (4/19/2024, 7:04:00 PM)
After market: 28.02 0 (0%)28.02
+0.04 (+0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap303.46M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.41 | ||
| Fwd PE | 84.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 2.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.96% | ||
| PM (TTM) | 1.52% | ||
| GM | 19.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)108.79%
EPS 3Y-34.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y291.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.69%
Revenue growth 3Y20.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y