GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
74.89 USD
+0.36 (+0.48%)
74.89 USD
0 (0%)
GHM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 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.
1. Profitability
1.1 Basic Checks
- GHM had positive earnings in the past year.
- In the past year GHM had a positive cash flow from operations.
- GHM had positive earnings in 4 of the past 5 years.
- 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 of 4.76%. This is comparable to the rest of the industry: GHM outperforms 58.33% of its industry peers.
- With a decent Return On Equity value of 10.71%, GHM is doing good in the industry, outperforming 65.15% of the companies in the same industry.
- GHM's Return On Invested Capital of 10.15% is fine compared to the rest of the industry. GHM outperforms 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GHM is significantly below the industry average of 10.24%.
- The 3 year average ROIC (5.20%) for GHM is below the current ROIC(10.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 10.71% | ||
| ROIC | 10.15% |
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
- GHM has a Profit Margin (6.00%) which is in line with its industry peers.
- GHM's Profit Margin has improved in the last couple of years.
- The Operating Margin of GHM (7.46%) is comparable to the rest of the industry.
- GHM's Operating Margin has improved in the last couple of years.
- GHM's Gross Margin of 24.89% is on the low side compared to the rest of the industry. GHM is outperformed by 65.91% of its industry peers.
- GHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.46% | ||
| PM (TTM) | 6% | ||
| GM | 24.89% |
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.
- GHM has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for GHM has been increased compared to 5 years ago.
- Compared to 1 year ago, GHM has an improved debt to assets ratio.
2.2 Solvency
- GHM has an Altman-Z score of 4.60. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of GHM (4.60) is better than 69.70% of its industry peers.
- 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 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.6 |
ROIC/WACC1.04
WACC9.79%
2.3 Liquidity
- GHM has a Current Ratio of 1.05. This is a normal value and indicates that GHM is financially healthy and should not expect problems in meeting its short term obligations.
- GHM has a Current ratio of 1.05. This is amonst the worse of the industry: GHM underperforms 87.12% of its industry peers.
- A Quick Ratio of 0.77 indicates that GHM may have some problems paying its short term obligations.
- The Quick ratio of GHM (0.77) is worse than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- GHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.14%, 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 16.04% 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)69.14%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%0%
Revenue 1Y (TTM)16.04%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%23.27%
3.2 Future
- Based on estimates for the next years, GHM will show a very strong growth in Earnings Per Share. The EPS will grow by 21.04% on average per year.
- The Revenue is expected to grow by 11.70% on average over the next years. This is quite good.
EPS Next Y3.96%
EPS Next 2Y21.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.81%
Revenue Next 2Y11.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- Based on the Price/Earnings ratio of 54.66, 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 68.18% of the companies listed in the same industry.
- GHM is valuated expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 40.89, GHM can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than the industry average as 66.67% 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 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.66 | ||
| Fwd PE | 40.89 |
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 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.3 |
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.
- A more expensive valuation may be justified as GHM's earnings are expected to grow with 21.04% in the coming years.
PEG (NY)13.79
PEG (5Y)1.57
EPS Next 2Y21.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
74.89
+0.36 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-06 2026-02-06
Inst Owners176.05%
Inst Owner Change0.34%
Ins Owners5.68%
Ins Owner Change0.11%
Market Cap823.04M
Revenue(TTM)227.90M
Net Income(TTM)13.67M
Analysts77.5
Price Target76.5 (2.15%)
Short Float %4.27%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)42.46%
Min EPS beat(2)6.7%
Max EPS beat(2)78.22%
EPS beat(4)4
Avg EPS beat(4)64.38%
Min EPS beat(4)6.7%
Max EPS beat(4)124.08%
EPS beat(8)8
Avg EPS beat(8)114.43%
EPS beat(12)12
Avg EPS beat(12)179.24%
EPS beat(16)14
Avg EPS beat(16)116.15%
Revenue beat(2)1
Avg Revenue beat(2)5.34%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)13.59%
Revenue beat(4)2
Avg Revenue beat(4)2.58%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)13.59%
Revenue beat(8)5
Avg Revenue beat(8)4.54%
Revenue beat(12)9
Avg Revenue beat(12)9.06%
Revenue beat(16)12
Avg Revenue beat(16)5.9%
PT rev (1m)8.3%
PT rev (3m)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.66 | ||
| Fwd PE | 40.89 | ||
| P/S | 3.61 | ||
| P/FCF | N/A | ||
| P/OCF | 63.35 | ||
| P/B | 6.45 | ||
| P/tB | 11.31 | ||
| EV/EBITDA | 34.3 |
EPS(TTM)1.37
EY1.83%
EPS(NY)1.83
Fwd EY2.45%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)1.18
OCFY1.58%
SpS20.74
BVpS11.61
TBVpS6.62
PEG (NY)13.79
PEG (5Y)1.57
Graham Number18.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 10.71% | ||
| ROCE | 12.6% | ||
| ROIC | 10.15% | ||
| ROICexc | 11.97% | ||
| ROICexgc | 22.98% | ||
| OM | 7.46% | ||
| PM (TTM) | 6% | ||
| GM | 24.89% | ||
| FCFM | N/A |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 376.81% | ||
| Cap/Sales | 10.37% | ||
| Interest Coverage | 58.45 | ||
| Cash Conversion | 55.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 4.6 |
F-Score7
WACC9.79%
ROIC/WACC1.04
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)69.14%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%0%
EPS Next Y3.96%
EPS Next 2Y21.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.04%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%23.27%
Revenue Next Year13.81%
Revenue Next 2Y11.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y66.01%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year109.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-152.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-50.43%
OCF growth 3YN/A
OCF growth 5Y68.5%
GRAHAM CORP / GHM FAQ
Can you provide the ChartMill fundamental rating for GRAHAM CORP?
ChartMill assigns a fundamental rating of 4 / 10 to GHM.
What is the valuation status of GRAHAM CORP (GHM) stock?
ChartMill assigns a valuation rating of 1 / 10 to GRAHAM CORP (GHM). This can be considered as Overvalued.
How profitable is GRAHAM CORP (GHM) stock?
GRAHAM CORP (GHM) has a profitability rating of 5 / 10.
How financially healthy is GRAHAM CORP?
The financial health rating of GRAHAM CORP (GHM) is 4 / 10.
What is the expected EPS growth for GRAHAM CORP (GHM) stock?
The Earnings per Share (EPS) of GRAHAM CORP (GHM) is expected to grow by 3.96% in the next year.