GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - NYSE:GHM - US3845561063 - Common Stock
63.95 USD
+1.98 (+3.2%)
63.95 USD
0 (0%)
Overall GHM gets a fundamental rating of 5 out of 10. We evaluated GHM against 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
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.
In multiple years GHM reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of GHM (5.49%) is better than 60.77% of its industry peers.
GHM's Return On Equity of 11.23% is fine compared to the rest of the industry. GHM outperforms 63.08% of its industry peers.
GHM has a Return On Invested Capital of 10.42%. This is in the better half of the industry: GHM outperforms 73.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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(10.42%), 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
With a Profit Margin value of 6.43%, GHM perfoms like the industry average, outperforming 54.62% of the companies in the same industry.
In the last couple of years the Profit Margin of GHM has grown nicely.
GHM has a Operating Margin (7.88%) which is comparable to the rest of the industry.
GHM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.63%, GHM is doing worse than 64.62% of the companies in the same industry.
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
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.
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
GHM has an Altman-Z score of 4.92. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.92, GHM is in the better half of the industry, outperforming 76.15% 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.
GHM's Debt to Equity ratio of 0.00 is amongst the best of the industry. GHM outperforms 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.92 |
ROIC/WACC1.09
WACC9.56%
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 86.15% 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 (0.74) than 80.00% 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.
The Revenue has grown by 14.64% in the past year. This is quite good.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
Based on estimates for the next years, GHM will show a very strong growth in Earnings Per Share. The EPS will grow by 23.89% on average per year.
Based on estimates for the next years, GHM will show a quite strong growth in Revenue. The Revenue will grow by 11.22% on average per year.
EPS Next Y-1.99%
EPS Next 2Y23.89%
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.
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
Based on the Price/Earnings ratio of 46.68, the valuation of GHM can be described as expensive.
Based on the Price/Earnings ratio, GHM is valued a bit more expensive than 68.46% of the companies in the same industry.
GHM is valuated expensively when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.33, which means the current valuation is very expensive for GHM.
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.
GHM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.68 | ||
| Fwd PE | 33.33 |
4.2 Price Multiples
72.31% of the companies in the same industry are cheaper than GHM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.04 |
4.3 Compensation for Growth
GHM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 23.89% in the coming years.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y23.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.95
+1.98 (+3.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change-0.33%
Ins Owners5.68%
Ins Owner Change6.52%
Market Cap702.17M
Revenue(TTM)215.43M
Net Income(TTM)13.86M
Analysts80
Price Target65.79 (2.88%)
Short Float %4.08%
Short Ratio3.93
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)8.4%
PT rev (3m)9.32%
EPS NQ rev (1m)-4.11%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)-5.6%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.68 | ||
| Fwd PE | 33.33 | ||
| P/S | 3.26 | ||
| P/FCF | N/A | ||
| P/OCF | 52.63 | ||
| P/B | 5.69 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 30.04 |
EPS(TTM)1.37
EY2.14%
EPS(NY)1.92
Fwd EY3%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)1.22
OCFY1.9%
SpS19.62
BVpS11.24
TBVpS6.2
PEG (NY)N/A
PEG (5Y)1.34
Graham Number18.61
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
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 Turnover0.85
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 | 4.92 |
F-Score7
WACC9.56%
ROIC/WACC1.09
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 Y-1.99%
EPS Next 2Y23.89%
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 Year102.04%
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%
GRAHAM CORP / GHM FAQ
Can you provide the ChartMill fundamental rating for GRAHAM CORP?
ChartMill assigns a fundamental rating of 5 / 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 6 / 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 decline by -1.99% in the next year.