GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHM - US3845561063 - Common Stock
76.25 USD
+1.05 (+1.4%)
76.25 USD
0 (0%)
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 shows excellent growth, but is valued quite expensive already.
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
- The Return On Assets of GHM (4.76%) is comparable to the rest of the industry.
- With a decent Return On Equity value of 10.71%, GHM is doing good in the industry, outperforming 65.15% of the companies in the same industry.
- GHM has a Return On Invested Capital of 10.15%. This is in the better half of the industry: GHM outperforms 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GHM is significantly below the industry average of 10.24%.
- 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
- The Profit Margin of GHM (6.00%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of GHM has grown nicely.
- With a Operating Margin value of 7.46%, GHM perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
- In the last couple of years the Operating Margin of GHM has grown nicely.
- GHM's Gross Margin of 24.89% is on the low side compared to the rest of the industry. GHM is outperformed by 65.91% 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
- GHM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 4.63 indicates that GHM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.63, GHM is in the better half of the industry, outperforming 69.70% 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.
- With an excellent Debt to Equity ratio value of 0.00, GHM belongs to the best 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 | 4.63 |
ROIC/WACC1.05
WACC9.67%
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 worse Current ratio (1.05) than 87.12% 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 in the lower half of the industry: GHM underperforms 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.
- 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
- 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.
- 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
- 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 55.66, 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 68.18% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, GHM is valued quite expensively.
- GHM is valuated quite expensively with a Price/Forward Earnings ratio of 41.63.
- 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.
- When comparing the Price/Forward Earnings ratio of GHM to the average of the S&P500 Index (25.98), we can say GHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.66 | ||
| Fwd PE | 41.63 |
4.2 Price Multiples
- GHM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GHM is more expensive than 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.61 |
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)14.04
PEG (5Y)1.6
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.