GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
Taking everything into account, GHM scores 5 out of 10 in our fundamental rating. GHM was compared to 128 industry peers in the Machinery industry. The financial health of GHM is average, but there are quite some concerns on its profitability. GHM is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GHM was profitable.
GHM had a positive operating cash flow in the past year.
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's Return On Assets of 3.11% is in line compared to the rest of the industry. GHM outperforms 48.80% of its industry peers.
GHM has a Return On Equity (6.89%) which is in line with its industry peers.
With a Return On Invested Capital value of 6.25%, GHM perfoms like the industry average, outperforming 46.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 6.89% | ||
| ROIC | 6.25% |
ROA(3y)-0.88%
ROA(5y)0.06%
ROE(3y)-1.46%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GHM (3.95%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GHM has remained more or less at the same level.
GHM's Operating Margin of 5.22% is on the low side compared to the rest of the industry. GHM is outperformed by 60.80% of its industry peers.
In the last couple of years the Operating Margin of GHM has declined.
GHM's Gross Margin of 24.23% is on the low side compared to the rest of the industry. GHM is outperformed by 67.20% of its industry peers.
GHM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | 3.95% | ||
| GM | 24.23% |
OM growth 3Y7.23%
OM growth 5Y-5.6%
PM growth 3Y-0.08%
PM growth 5YN/A
GM growth 3Y1.33%
GM growth 5Y-1.72%
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
The debt/assets ratio for GHM has been reduced compared to a year ago.
2.2 Solvency
GHM has an Altman-Z score of 3.15. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
GHM's Altman-Z score of 3.15 is in line compared to the rest of the industry. GHM outperforms 52.80% of its industry peers.
GHM has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.00, GHM belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
GHM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GHM's Debt to Equity ratio of 0.00 is amongst the best of the industry. GHM outperforms 84.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.59
WACC10.67%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GHM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, GHM is doing worse than 89.60% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that GHM may have some problems paying its short term obligations.
GHM has a worse Quick ratio (0.83) than 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 185.29% over the past year.
Measured over the past years, GHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.04% on average per year.
The Revenue has grown by 18.10% in the past year. This is quite good.
The Revenue has been growing by 15.11% on average over the past years. This is quite good.
EPS 1Y (TTM)185.29%
EPS 3Y31.04%
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)18.1%
Revenue growth 3Y23.92%
Revenue growth 5Y15.11%
Sales Q2Q%7.35%
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 50.70% on average per year.
The Revenue is expected to grow by 11.02% on average over the next years. This is quite good.
EPS Next Y92.65%
EPS Next 2Y54.73%
EPS Next 3Y50.7%
EPS Next 5YN/A
Revenue Next Year14.9%
Revenue Next 2Y12.29%
Revenue Next 3Y11.02%
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.
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
The Price/Earnings ratio is 34.51, which means the current valuation is very expensive for GHM.
Compared to the rest of the industry, the Price/Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 67.20% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. GHM is around the same levels.
The Price/Forward Earnings ratio is 25.89, 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 60.00% 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 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.51 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than the industry average as 64.80% of the companies are valued more cheaply.
GHM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GHM is cheaper than 87.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 21.89 |
4.3 Compensation for Growth
GHM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 50.70% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y54.73%
EPS Next 3Y50.7%
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.47
-1.75 (-4.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.32%
Inst Owner Change0.52%
Ins Owners5.44%
Ins Owner Change-0.13%
Market Cap364.82M
Analysts80
Price Target53.72 (60.5%)
Short Float %1.22%
Short Ratio1.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)115.02%
Min EPS beat(2)110.8%
Max EPS beat(2)119.24%
EPS beat(4)4
Avg EPS beat(4)164.47%
Min EPS beat(4)110.8%
Max EPS beat(4)271.29%
EPS beat(8)8
Avg EPS beat(8)236.68%
EPS beat(12)10
Avg EPS beat(12)133.41%
EPS beat(16)10
Avg EPS beat(16)45.79%
Revenue beat(2)1
Avg Revenue beat(2)2.71%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)6.71%
Revenue beat(4)3
Avg Revenue beat(4)6.5%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)11.41%
Revenue beat(8)7
Avg Revenue beat(8)12.31%
Revenue beat(12)10
Avg Revenue beat(12)7.01%
Revenue beat(16)12
Avg Revenue beat(16)4.61%
PT rev (1m)4.68%
PT rev (3m)45.92%
EPS NQ rev (1m)-38.1%
EPS NQ rev (3m)23.81%
EPS NY rev (1m)0%
EPS NY rev (3m)19.77%
Revenue NQ rev (1m)-2.94%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.51 | ||
| Fwd PE | 25.89 | ||
| P/S | 1.86 | ||
| P/FCF | 13.77 | ||
| P/OCF | 9.39 | ||
| P/B | 3.24 | ||
| P/tB | 6.57 | ||
| EV/EBITDA | 21.89 |
EPS(TTM)0.97
EY2.9%
EPS(NY)1.29
Fwd EY3.86%
FCF(TTM)2.43
FCFY7.26%
OCF(TTM)3.57
OCFY10.65%
SpS18.02
BVpS10.32
TBVpS5.09
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 6.89% | ||
| ROCE | 8.42% | ||
| ROIC | 6.25% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 23.43% | ||
| OM | 5.22% | ||
| PM (TTM) | 3.95% | ||
| GM | 24.23% | ||
| FCFM | 13.49% |
ROA(3y)-0.88%
ROA(5y)0.06%
ROE(3y)-1.46%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y27.24%
ROICexcg growth 5Y-2.45%
ROICexc growth 3Y-5.33%
ROICexc growth 5Y-18.31%
OM growth 3Y7.23%
OM growth 5Y-5.6%
PM growth 3Y-0.08%
PM growth 5YN/A
GM growth 3Y1.33%
GM growth 5Y-1.72%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 212.64% | ||
| Cap/Sales | 6.3% | ||
| Interest Coverage | 23.45 | ||
| Cash Conversion | 241.9% | ||
| Profit Quality | 341.71% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.15 |
F-Score7
WACC10.67%
ROIC/WACC0.59
Cap/Depr(3y)91.29%
Cap/Depr(5y)101.5%
Cap/Sales(3y)3.08%
Cap/Sales(5y)2.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)185.29%
EPS 3Y31.04%
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y92.65%
EPS Next 2Y54.73%
EPS Next 3Y50.7%
EPS Next 5YN/A
Revenue 1Y (TTM)18.1%
Revenue growth 3Y23.92%
Revenue growth 5Y15.11%
Sales Q2Q%7.35%
Revenue Next Year14.9%
Revenue Next 2Y12.29%
Revenue Next 3Y11.02%
Revenue Next 5YN/A
EBIT growth 1Y113.46%
EBIT growth 3Y32.88%
EBIT growth 5Y8.67%
EBIT Next Year231.36%
EBIT Next 3Y78.93%
EBIT Next 5YN/A
FCF growth 1Y595.25%
FCF growth 3YN/A
FCF growth 5Y29.29%
OCF growth 1Y539.29%
OCF growth 3YN/A
OCF growth 5Y30.71%