GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - NYSE:GHM - US3845561063 - Common Stock
59.68 USD
-1.41 (-2.31%)
59.68 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GHM. 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
GHM had positive earnings in the past year.
GHM had a positive operating cash flow in the past year.
GHM had positive earnings in 4 of the past 5 years.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
GHM's Return On Assets of 5.49% is in line compared to the rest of the industry. GHM outperforms 60.00% of its industry peers.
The Return On Equity of GHM (11.23%) is better than 63.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.42%, GHM is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHM is below the industry average of 10.01%.
The 3 year average ROIC (5.20%) for GHM is below the current ROIC(10.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.23% | ||
| ROIC | 10.42% |
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
The Profit Margin of GHM (6.43%) is comparable to the rest of the industry.
GHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.88%, GHM is in line with its industry, outperforming 47.69% of the companies in the same industry.
In the last couple of years the Operating Margin of GHM has grown nicely.
With a Gross Margin value of 25.63%, GHM is not doing good in the industry: 63.85% 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 | 7.88% | ||
| PM (TTM) | 6.43% | ||
| GM | 25.63% |
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.
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
An Altman-Z score of 4.70 indicates that GHM is not in any danger for bankruptcy at the moment.
GHM's Altman-Z score of 4.70 is fine compared to the rest of the industry. GHM outperforms 75.38% of its industry peers.
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 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.7 |
ROIC/WACC1.1
WACC9.49%
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.
The Current ratio of GHM (1.05) is worse than 86.15% of its industry peers.
GHM has a Quick Ratio of 1.05. This is a bad value and indicates that GHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, GHM is doing worse than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
GHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 153.70%, which is quite impressive.
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 14.64% in the past year. This is quite good.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
EPS 1Y (TTM)153.7%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%36.36%
Revenue 1Y (TTM)14.64%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 26.32% 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 11.22% on average per year.
EPS Next Y3.83%
EPS Next 2Y26.32%
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
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
GHM is valuated quite expensively with a Price/Earnings ratio of 43.56.
GHM's Price/Earnings ratio is a bit more expensive when compared to the industry. GHM is more expensive than 68.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. GHM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 29.92, which means the current valuation is very expensive for GHM.
GHM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GHM is more expensive than 66.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. GHM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.56 | ||
| Fwd PE | 29.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 71.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28 |
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 26.32% in the coming years.
PEG (NY)11.38
PEG (5Y)1.25
EPS Next 2Y26.32%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.68
-1.41 (-2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change0%
Ins Owners5.68%
Ins Owner Change6.52%
Market Cap655.29M
Analysts80
Price Target60.69 (1.69%)
Short Float %3.4%
Short Ratio3.3
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)101.15%
Min EPS beat(2)78.22%
Max EPS beat(2)124.08%
EPS beat(4)4
Avg EPS beat(4)92.51%
Min EPS beat(4)48.51%
Max EPS beat(4)124.08%
EPS beat(8)8
Avg EPS beat(8)137.09%
EPS beat(12)12
Avg EPS beat(12)185.37%
EPS beat(16)13
Avg EPS beat(16)90.92%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)5.55%
Revenue beat(4)2
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)6.71%
Revenue beat(8)5
Avg Revenue beat(8)3.65%
Revenue beat(12)9
Avg Revenue beat(12)8.1%
Revenue beat(16)11
Avg Revenue beat(16)4.85%
PT rev (1m)0%
PT rev (3m)0.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)-11.99%
EPS NY rev (3m)4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.56 | ||
| Fwd PE | 29.92 | ||
| P/S | 3.04 | ||
| P/FCF | N/A | ||
| P/OCF | 49.12 | ||
| P/B | 5.31 | ||
| P/tB | 9.63 | ||
| EV/EBITDA | 28 |
EPS(TTM)1.37
EY2.3%
EPS(NY)1.99
Fwd EY3.34%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)1.22
OCFY2.04%
SpS19.62
BVpS11.24
TBVpS6.2
PEG (NY)11.38
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.23% | ||
| ROCE | 12.93% | ||
| ROIC | 10.42% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.98% | ||
| OM | 7.88% | ||
| PM (TTM) | 6.43% | ||
| GM | 25.63% | ||
| 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
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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 380.01% | ||
| Cap/Sales | 10.67% | ||
| Interest Coverage | 54.75 | ||
| Cash Conversion | 57.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.7 |
F-Score7
WACC9.49%
ROIC/WACC1.1
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 Y3.83%
EPS Next 2Y26.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.64%
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 1Y149.2%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year102.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-152.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-42.5%
OCF growth 3YN/A
OCF growth 5Y68.5%