GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
GHM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 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 is valued quite expensive, but it does show an excellent growth. These ratings would make GHM suitable for growth investing!
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 4.63%. This is comparable to the rest of the industry: GHM outperforms 50.00% of its industry peers.
With a Return On Equity value of 10.23%, GHM perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
The Return On Invested Capital of GHM (9.59%) is better than 64.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GHM is significantly below the industry average of 10.71%.
The 3 year average ROIC (5.20%) for GHM is below the current ROIC(9.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 10.23% | ||
| ROIC | 9.59% |
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 5.83% is in line compared to the rest of the industry. GHM outperforms 53.91% of its industry peers.
In the last couple of years the Profit Margin of GHM has grown nicely.
The Operating Margin of GHM (7.26%) is comparable to the rest of the industry.
GHM's Operating Margin has improved in the last couple of years.
GHM has a Gross Margin of 25.18%. This is in the lower half of the industry: GHM underperforms 64.84% of its industry peers.
GHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.26% | ||
| PM (TTM) | 5.83% | ||
| GM | 25.18% |
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 below the Cost of Capital (WACC), so GHM is destroying value.
Compared to 1 year ago, GHM has more shares outstanding
Compared to 5 years ago, GHM has more shares outstanding
GHM has a better debt/assets ratio than last year.
2.2 Solvency
GHM has an Altman-Z score of 3.73. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.73, GHM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of GHM is 0.01, which is an excellent value as it means it would take GHM, only 0.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.01, GHM belongs to the top of the industry, outperforming 92.97% 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 has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. GHM outperforms 85.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.73 |
ROIC/WACC0.94
WACC10.15%
2.3 Liquidity
GHM has a Current Ratio of 1.04. This is a normal value and indicates that GHM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, GHM is doing worse than 88.28% of the companies in the same industry.
GHM has a Quick Ratio of 1.04. 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 (0.74) than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| 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 131.48%, 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 13.13% in the past year. This is quite good.
Measured over the past years, GHM shows a quite strong growth in Revenue. The Revenue has been growing by 18.30% on average per year.
EPS 1Y (TTM)131.48%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%186.67%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%20.94%
3.2 Future
GHM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.91% yearly.
The Revenue is expected to grow by 10.44% on average over the next years. This is quite good.
EPS Next Y-11.52%
EPS Next 2Y18.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.54%
Revenue Next 2Y10.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 40.58, GHM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GHM is valued a bit more expensive than the industry average as 67.19% of the companies are valued more cheaply.
GHM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 45.87 indicates a quite expensive valuation of GHM.
Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than 69.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GHM to the average of the S&P500 Index (21.76), we can say GHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.58 | ||
| Fwd PE | 45.87 |
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 67.97% of the companies listed in the same industry.
GHM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GHM is more expensive than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.18 | ||
| EV/EBITDA | 24.21 |
4.3 Compensation for Growth
GHM's earnings are expected to grow with 18.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y18.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.73
+1.73 (+3.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner Change1.05%
Ins Owners5.88%
Ins Owner Change6.42%
Market Cap552.96M
Analysts80
Price Target58.48 (15.28%)
Short Float %2.73%
Short Ratio3.18
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)86.29%
Min EPS beat(2)48.51%
Max EPS beat(2)124.08%
EPS beat(4)4
Avg EPS beat(4)100.66%
Min EPS beat(4)48.51%
Max EPS beat(4)124.08%
EPS beat(8)8
Avg EPS beat(8)241.92%
EPS beat(12)12
Avg EPS beat(12)197.09%
EPS beat(16)12
Avg EPS beat(16)59.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)5.55%
Revenue beat(4)2
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)6.71%
Revenue beat(8)6
Avg Revenue beat(8)6.22%
Revenue beat(12)10
Avg Revenue beat(12)8.52%
Revenue beat(16)11
Avg Revenue beat(16)4.02%
PT rev (1m)8.86%
PT rev (3m)8.86%
EPS NQ rev (1m)-8%
EPS NQ rev (3m)-8%
EPS NY rev (1m)-6.01%
EPS NY rev (3m)-6.01%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.58 | ||
| Fwd PE | 45.87 | ||
| P/S | 2.63 | ||
| P/FCF | 103.18 | ||
| P/OCF | 22.74 | ||
| P/B | 4.62 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 24.21 |
EPS(TTM)1.25
EY2.46%
EPS(NY)1.11
Fwd EY2.18%
FCF(TTM)0.49
FCFY0.97%
OCF(TTM)2.23
OCFY4.4%
SpS19.26
BVpS10.97
TBVpS5.85
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 10.23% | ||
| ROCE | 11.9% | ||
| ROIC | 9.59% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 24.28% | ||
| OM | 7.26% | ||
| PM (TTM) | 5.83% | ||
| GM | 25.18% | ||
| FCFM | 2.55% |
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-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 319.36% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 51.12 | ||
| Cash Conversion | 114.87% | ||
| Profit Quality | 43.82% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 3.73 |
F-Score8
WACC10.15%
ROIC/WACC0.94
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)131.48%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%186.67%
EPS Next Y-11.52%
EPS Next 2Y18.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%20.94%
Revenue Next Year11.54%
Revenue Next 2Y10.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y109.62%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year95.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.53%
OCF growth 3YN/A
OCF growth 5Y68.5%