GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
68 USD
-3.53 (-4.93%)
67.51 USD
-0.49 (-0.72%)
We assign a fundamental rating of 4 out of 10 to GHM. GHM was compared to 132 industry peers in the Machinery industry. GHM has an average financial health and profitability rating. GHM is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year GHM was profitable.
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
The Return On Assets of GHM (4.76%) is comparable to the rest of the industry.
The Return On Equity of GHM (10.71%) is better than 64.39% of its industry peers.
The Return On Invested Capital of GHM (10.15%) is better than 71.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GHM is significantly below the industry average of 10.27%.
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's Profit Margin of 6.00% is in line compared to the rest of the industry. GHM outperforms 55.30% of its industry peers.
GHM's Profit Margin has improved in the last couple of years.
GHM has a Operating Margin of 7.46%. This is comparable to the rest of the industry: GHM outperforms 49.24% of its industry peers.
GHM's Operating Margin has improved in the last couple of years.
GHM has a Gross Margin of 24.89%. This is in the lower half of the industry: GHM underperforms 65.91% of its industry peers.
In the last couple of years the Gross Margin of GHM has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GHM is still creating some 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 4.48. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.48, GHM is doing good in the industry, outperforming 68.18% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
GHM has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. GHM outperforms 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.48 |
ROIC/WACC1.07
WACC9.51%
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 86.36% 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.
GHM has a worse Quick ratio (0.77) than 78.79% 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.
GHM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.04%.
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 21.04% on average over the next years. This is a very strong growth
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.
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
With a Price/Earnings ratio of 49.64, GHM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GHM is valued a bit more expensive than 67.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, GHM is valued quite expensively.
The Price/Forward Earnings ratio is 37.13, which means the current valuation is very expensive for GHM.
66.67% of the companies in the same industry are cheaper than GHM, based on the Price/Forward Earnings ratio.
GHM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.64 | ||
| Fwd PE | 37.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 32.88 |
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 21.04% in the coming years.
PEG (NY)12.52
PEG (5Y)1.42
EPS Next 2Y21.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68
-3.53 (-4.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners174.69%
Inst Owner Change3.49%
Ins Owners5.68%
Ins Owner Change0.11%
Market Cap747.32M
Revenue(TTM)227.90M
Net Income(TTM)13.67M
Analysts77.5
Price Target70.64 (3.88%)
Short Float %4.01%
Short Ratio3.89
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)0%
PT rev (3m)16.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)1.42%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.64 | ||
| Fwd PE | 37.13 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | 57.53 | ||
| P/B | 5.86 | ||
| P/tB | 10.27 | ||
| EV/EBITDA | 32.88 |
EPS(TTM)1.37
EY2.01%
EPS(NY)1.83
Fwd EY2.69%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)1.18
OCFY1.74%
SpS20.74
BVpS11.61
TBVpS6.62
PEG (NY)12.52
PEG (5Y)1.42
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 | 4.48 |
F-Score7
WACC9.51%
ROIC/WACC1.07
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.
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 3.96% in the next year.