GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
55.28 USD
-2.22 (-3.86%)
55.28 USD
0 (0%)
Taking everything into account, GHM scores 4 out of 10 in our fundamental rating. GHM was compared to 130 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.
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
Looking at the Return On Assets, with a value of 4.76%, GHM is in line with its industry, outperforming 57.69% of the companies in the same industry.
The Return On Equity of GHM (10.71%) is better than 63.85% of its industry peers.
The Return On Invested Capital of GHM (10.15%) is better than 72.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GHM is significantly below the industry average of 10.35%.
The last Return On Invested Capital (10.15%) for GHM is above the 3 year average (5.20%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 6.00%, GHM perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
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.
With a Gross Margin value of 24.89%, GHM is not doing good in the industry: 66.15% 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 | 7.46% | ||
| 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.
Compared to 1 year ago, GHM has more shares outstanding
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 3.90. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GHM (3.90) is better than 66.15% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, GHM belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.9 |
ROIC/WACC1.08
WACC9.38%
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.
With a Current ratio value of 1.05, GHM is not doing good in the industry: 86.92% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that GHM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, GHM is doing worse than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.14% 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
The Revenue has grown by 16.04% in the past year. This is quite good.
GHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
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
The Earnings Per Share is expected to grow by 21.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, GHM will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
EPS Next Y2.51%
EPS Next 2Y21.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.48%
Revenue Next 2Y10.84%
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.
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
GHM is valuated quite expensively with a Price/Earnings ratio of 40.35.
67.69% 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 26.11.
A Price/Forward Earnings ratio of 29.86 indicates a quite expensive valuation of GHM.
Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than 66.92% of the companies in the same industry.
GHM is valuated at similar levels of the S&P average 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 | 40.35 | ||
| Fwd PE | 29.86 |
4.2 Price Multiples
69.23% of the companies in the same industry are cheaper than GHM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 21.70% in the coming years.
PEG (NY)16.09
PEG (5Y)1.16
EPS Next 2Y21.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.28
-2.22 (-3.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change3.49%
Ins Owners5.68%
Ins Owner Change3.83%
Market Cap607.53M
Revenue(TTM)227.90M
Net Income(TTM)13.67M
Analysts77.5
Price Target70.64 (27.79%)
Short Float %3.77%
Short Ratio3.42
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)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)16.39%
PT rev (3m)16.39%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-32.1%
EPS NY rev (1m)4.59%
EPS NY rev (3m)-13.1%
Revenue NQ rev (1m)-3.05%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.35 | ||
| Fwd PE | 29.86 | ||
| P/S | 2.67 | ||
| P/FCF | N/A | ||
| P/OCF | 46.77 | ||
| P/B | 4.76 | ||
| P/tB | 8.35 | ||
| EV/EBITDA | 26.26 |
EPS(TTM)1.37
EY2.48%
EPS(NY)1.85
Fwd EY3.35%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)1.18
OCFY2.14%
SpS20.74
BVpS11.61
TBVpS6.62
PEG (NY)16.09
PEG (5Y)1.16
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 | 3.9 |
F-Score7
WACC9.38%
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)69.14%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%0%
EPS Next Y2.51%
EPS Next 2Y21.7%
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 Year11.48%
Revenue Next 2Y10.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y66.01%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year102.04%
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.
Can you provide the valuation status for GRAHAM CORP?
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.
What is the financial health of GRAHAM CORP (GHM) stock?
The financial health rating of GRAHAM CORP (GHM) is 4 / 10.
Can you provide the expected EPS growth for GHM stock?
The Earnings per Share (EPS) of GRAHAM CORP (GHM) is expected to grow by 2.51% in the next year.