GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
61.57 USD
+0.73 (+1.2%)
61.57 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GHM. GHM was compared to 131 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
GHM had positive earnings in the past year.
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
GHM has a Return On Assets (4.76%) which is in line with its industry peers.
GHM has a Return On Equity of 10.71%. This is in the better half of the industry: GHM outperforms 64.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.15%, GHM is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
GHM had an Average Return On Invested Capital over the past 3 years of 5.20%. This is significantly below the industry average of 10.32%.
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
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.
GHM has a Operating Margin (7.46%) which is in line with 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 66.15% of its industry peers.
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
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.
GHM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GHM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.04 indicates that GHM is not in any danger for bankruptcy at the moment.
The Altman-Z score of GHM (4.04) is better than 67.69% of its industry peers.
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 86.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.04 |
ROIC/WACC1.05
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.05 indicates that GHM should not have too much problems paying its short term obligations.
The Current ratio of GHM (1.05) is worse than 86.92% of its industry peers.
A Quick Ratio of 0.77 indicates that GHM may have some problems paying its short term obligations.
GHM has a Quick ratio of 0.77. This is amonst the worse of the industry: GHM underperforms 80.00% of its industry peers.
| 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.
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%.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
GHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.04% yearly.
GHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.70% yearly.
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.
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
With a Price/Earnings ratio of 44.94, GHM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 66.92% of the companies listed in the same industry.
GHM is valuated expensively when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.62 indicates a quite expensive valuation of GHM.
Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, GHM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.94 | ||
| Fwd PE | 33.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than the industry average as 70.77% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GHM does not grow enough to justify the current Price/Earnings ratio.
GHM's earnings are expected to grow with 21.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.34
PEG (5Y)1.29
EPS Next 2Y21.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
61.57
+0.73 (+1.2%)
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 Cap676.65M
Revenue(TTM)227.90M
Net Income(TTM)13.67M
Analysts77.5
Price Target70.64 (14.73%)
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)7.36%
PT rev (3m)16.39%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)1.42%
EPS NY rev (3m)-11.87%
Revenue NQ rev (1m)-3.05%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.94 | ||
| Fwd PE | 33.62 | ||
| P/S | 2.97 | ||
| P/FCF | N/A | ||
| P/OCF | 52.09 | ||
| P/B | 5.3 | ||
| P/tB | 9.3 | ||
| EV/EBITDA | 27.84 |
EPS(TTM)1.37
EY2.23%
EPS(NY)1.83
Fwd EY2.97%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)1.18
OCFY1.92%
SpS20.74
BVpS11.61
TBVpS6.62
PEG (NY)11.34
PEG (5Y)1.29
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 | 4.04 |
F-Score7
WACC9.66%
ROIC/WACC1.05
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.