GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
58.91 USD
+1.61 (+2.81%)
58.91 USD
0 (0%)
Taking everything into account, GHM scores 4 out of 10 in our fundamental rating. GHM was compared to 130 industry peers in the Machinery industry. GHM has an average financial health and profitability rating. GHM is valued quite expensively, but it does show have an excellent growth rating.
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.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
GHM's Return On Assets of 4.76% is in line compared to the rest of the industry. GHM outperforms 57.69% of its industry peers.
GHM has a better Return On Equity (10.71%) than 63.85% of its industry peers.
With a decent Return On Invested Capital value of 10.15%, GHM is doing good in the industry, outperforming 72.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHM is significantly below the industry average of 10.39%.
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 has a Profit Margin (6.00%) which is comparable to the rest of the industry.
GHM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.46%, GHM perfoms like the industry average, outperforming 48.46% of the companies in the same industry.
GHM's Operating Margin has improved in the last couple of years.
GHM has a worse Gross Margin (24.89%) than 66.15% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GHM is creating some value.
Compared to 1 year ago, GHM has more shares outstanding
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 3.89 indicates that GHM is not in any danger for bankruptcy at the moment.
The Altman-Z score of GHM (3.89) is better than 65.38% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
GHM has a better Debt to Equity ratio (0.00) than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.89 |
ROIC/WACC1.08
WACC9.42%
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's Current ratio of 1.05 is on the low side compared to the rest of the industry. GHM is outperformed by 86.92% of its industry peers.
A Quick Ratio of 0.77 indicates that GHM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, GHM is doing worse than 78.46% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 34.88% on average over the past years. This is a very strong growth
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
GHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.70% yearly.
GHM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.84% yearly.
EPS Next Y2.51%
EPS Next 2Y21.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.48%
Revenue Next 2Y10.84%
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
A Price/Earnings ratio of 43.00 indicates a quite expensive valuation of GHM.
66.92% of the companies in the same industry are cheaper than GHM, based on the Price/Earnings ratio.
GHM is valuated expensively when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
GHM is valuated quite expensively with a Price/Forward Earnings ratio of 31.82.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, GHM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43 | ||
| Fwd PE | 31.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.17 |
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 21.70% in the coming years.
PEG (NY)17.14
PEG (5Y)1.23
EPS Next 2Y21.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.91
+1.61 (+2.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change3.49%
Ins Owners5.68%
Ins Owner Change3.83%
Market Cap647.42M
Revenue(TTM)227.90M
Net Income(TTM)13.67M
Analysts77.5
Price Target70.64 (19.91%)
Short Float %3.92%
Short Ratio3.77
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)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)16.39%
PT rev (3m)16.39%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-32.1%
EPS NY rev (1m)4.59%
EPS NY rev (3m)-13.1%
Revenue NQ rev (1m)-3.05%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43 | ||
| Fwd PE | 31.82 | ||
| P/S | 2.84 | ||
| P/FCF | N/A | ||
| P/OCF | 49.84 | ||
| P/B | 5.07 | ||
| P/tB | 8.9 | ||
| EV/EBITDA | 26.17 |
EPS(TTM)1.37
EY2.33%
EPS(NY)1.85
Fwd EY3.14%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)1.18
OCFY2.01%
SpS20.74
BVpS11.61
TBVpS6.62
PEG (NY)17.14
PEG (5Y)1.23
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 | 3.89 |
F-Score7
WACC9.42%
ROIC/WACC1.08
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 Y2.51%
EPS Next 2Y21.7%
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 Year11.48%
Revenue Next 2Y10.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y66.01%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year102.04%
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 2.51% in the next year.