GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
70.38 USD
-5.87 (-7.7%)
We assign a fundamental rating of 4 out of 10 to GHM. GHM was compared to 132 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.
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
- Looking at the Return On Assets, with a value of 4.76%, GHM is in line with its industry, outperforming 58.33% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.71%, GHM is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.15%, GHM is in the better half of the industry, outperforming 72.73% 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 10.24%.
- The last Return On Invested Capital (10.15%) for GHM is above the 3 year average (5.20%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 6.00%, GHM is in line with its industry, outperforming 53.79% of the companies in the same 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 48.48% of the companies in the same industry.
- GHM's Operating Margin has improved in the last couple of years.
- The Gross Margin of GHM (24.89%) is worse than 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.
- GHM has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GHM has more shares outstanding
- Compared to 1 year ago, GHM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.67 indicates that GHM is not in any danger for bankruptcy at the moment.
- GHM has a better Altman-Z score (4.67) than 69.70% of its industry peers.
- A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.00, GHM belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.67 |
ROIC/WACC1.05
WACC9.67%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that GHM should not have too much problems paying its short term obligations.
- GHM has a Current ratio of 1.05. This is amonst the worse of the industry: GHM underperforms 87.12% 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 79.55% 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.
- 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%.
- 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
- Based on estimates for the next years, GHM will show a very strong growth in Earnings Per Share. The EPS will grow by 21.04% on average per year.
- 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
- A Price/Earnings ratio of 51.37 indicates a quite expensive valuation of GHM.
- Based on the Price/Earnings ratio, GHM is valued a bit more expensive than 68.18% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GHM to the average of the S&P500 Index (27.25), we can say GHM is valued expensively.
- Based on the Price/Forward Earnings ratio of 38.43, the valuation of GHM can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 66.67% of the companies listed in the same industry.
- GHM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.37 | ||
| Fwd PE | 38.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than the industry average as 73.48% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.11 |
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)12.96
PEG (5Y)1.47
EPS Next 2Y21.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
GRAHAM CORP / GHM FAQ
Can you provide the ChartMill fundamental rating for GRAHAM CORP?
ChartMill assigns a fundamental rating of 4 / 10 to GHM.
What is the valuation status of GRAHAM CORP (GHM) stock?
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.
How financially healthy is GRAHAM CORP?
The financial health rating of GRAHAM CORP (GHM) is 4 / 10.
What is the expected EPS growth for GRAHAM CORP (GHM) stock?
The Earnings per Share (EPS) of GRAHAM CORP (GHM) is expected to grow by 3.96% in the next year.