GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - NYSE:GHM - US3845561063 - Common Stock
52.3 USD
+0.84 (+1.63%)
52.3 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GHM. GHM was compared to 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 expensively, but it does show have an excellent growth rating.
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.
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
The Return On Assets of GHM (5.49%) is comparable to the rest of the industry.
GHM's Return On Equity of 11.23% is fine compared to the rest of the industry. GHM outperforms 62.50% of its industry peers.
With a decent Return On Invested Capital value of 10.42%, GHM is doing good in the industry, outperforming 73.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHM is below the industry average of 10.02%.
The 3 year average ROIC (5.20%) for GHM is below the current ROIC(10.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.23% | ||
| ROIC | 10.42% |
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 of 6.43%. This is comparable to the rest of the industry: GHM outperforms 54.69% of its industry peers.
GHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.88%, GHM is in line with its industry, outperforming 46.88% 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 25.63% is on the low side compared to the rest of the industry. GHM is outperformed by 64.06% of its industry peers.
GHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.88% | ||
| PM (TTM) | 6.43% | ||
| GM | 25.63% |
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.
GHM has a better debt/assets ratio than last year.
2.2 Solvency
GHM has an Altman-Z score of 4.28. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
GHM's Altman-Z score of 4.28 is fine compared to the rest of the industry. GHM outperforms 71.09% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GHM is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, GHM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.28 |
ROIC/WACC1.04
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.05 indicates that GHM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.05, GHM is not doing good in the industry: 86.72% of the companies in the same industry are doing better.
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's Quick ratio of 0.74 is on the low side compared to the rest of the industry. GHM is outperformed by 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.70% 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.
Looking at the last year, GHM shows a quite strong growth in Revenue. The Revenue has grown by 14.64% in the last year.
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)153.7%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%36.36%
Revenue 1Y (TTM)14.64%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 24.88% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.22% on average over the next years. This is quite good.
EPS Next Y17.97%
EPS Next 2Y24.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.86%
Revenue Next 2Y11.22%
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 38.18 indicates a quite expensive valuation of GHM.
67.97% of the companies in the same industry are cheaper than GHM, based on the Price/Earnings ratio.
GHM is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.83, GHM can be considered very expensive at the moment.
GHM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GHM is more expensive than 60.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. GHM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 26.83 |
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 69.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GHM's earnings are expected to grow with 24.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)1.09
EPS Next 2Y24.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.3
+0.84 (+1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.2%
Inst Owner Change-0.62%
Ins Owners5.67%
Ins Owner Change6.42%
Market Cap574.25M
Analysts80
Price Target60.69 (16.04%)
Short Float %3.06%
Short Ratio3.06
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)101.15%
Min EPS beat(2)78.22%
Max EPS beat(2)124.08%
EPS beat(4)4
Avg EPS beat(4)92.51%
Min EPS beat(4)48.51%
Max EPS beat(4)124.08%
EPS beat(8)8
Avg EPS beat(8)137.09%
EPS beat(12)12
Avg EPS beat(12)185.37%
EPS beat(16)13
Avg EPS beat(16)90.92%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)5.55%
Revenue beat(4)2
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)6.71%
Revenue beat(8)5
Avg Revenue beat(8)3.65%
Revenue beat(12)9
Avg Revenue beat(12)8.1%
Revenue beat(16)11
Avg Revenue beat(16)4.85%
PT rev (1m)0.85%
PT rev (3m)12.97%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)0%
EPS NY rev (1m)18.7%
EPS NY rev (3m)25.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 26.83 | ||
| P/S | 2.67 | ||
| P/FCF | N/A | ||
| P/OCF | 43.04 | ||
| P/B | 4.65 | ||
| P/tB | 8.44 | ||
| EV/EBITDA | 24.08 |
EPS(TTM)1.37
EY2.62%
EPS(NY)1.95
Fwd EY3.73%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)1.22
OCFY2.32%
SpS19.62
BVpS11.24
TBVpS6.2
PEG (NY)2.12
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.23% | ||
| ROCE | 12.93% | ||
| ROIC | 10.42% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.98% | ||
| OM | 7.88% | ||
| PM (TTM) | 6.43% | ||
| GM | 25.63% | ||
| 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
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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 380.01% | ||
| Cap/Sales | 10.67% | ||
| Interest Coverage | 54.75 | ||
| Cash Conversion | 57.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.28 |
F-Score7
WACC9.97%
ROIC/WACC1.04
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)153.7%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%36.36%
EPS Next Y17.97%
EPS Next 2Y24.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.64%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%11.08%
Revenue Next Year11.86%
Revenue Next 2Y11.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y149.2%
EBIT growth 3YN/A
EBIT growth 5Y72.41%
EBIT Next Year105.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-152.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-42.5%
OCF growth 3YN/A
OCF growth 5Y68.5%