GRAHAM CORP (GHM) Stock Fundamental Analysis
NYSE:GHM - New York Stock Exchange, Inc. - US3845561063 - Common Stock - Currency: USD
Taking everything into account, GHM scores 5 out of 10 in our fundamental rating. GHM was compared to 128 industry peers in the Machinery industry. GHM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. GHM is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
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 has a Return On Assets of 3.47%. This is comparable to the rest of the industry: GHM outperforms 48.44% of its industry peers.
GHM has a Return On Equity of 8.02%. This is comparable to the rest of the industry: GHM outperforms 47.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.78%, GHM is in line with its industry, outperforming 49.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.02% | ||
| ROIC | 6.78% |
ROA(3y)-0.88%
ROA(5y)0.06%
ROE(3y)-1.46%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GHM has a Profit Margin (4.60%) which is in line with its industry peers.
GHM's Profit Margin has been stable in the last couple of years.
GHM's Operating Margin of 5.65% is on the low side compared to the rest of the industry. GHM is outperformed by 60.94% of its industry peers.
GHM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.82%, GHM is doing worse than 64.84% of the companies in the same industry.
In the last couple of years the Gross Margin of GHM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | 4.6% | ||
| GM | 24.82% |
OM growth 3Y7.23%
OM growth 5Y-5.6%
PM growth 3Y-0.08%
PM growth 5YN/A
GM growth 3Y1.33%
GM growth 5Y-1.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GHM is destroying value.
Compared to 1 year ago, GHM has more shares outstanding
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 2.70. This is not the best score and indicates that GHM is in the grey zone with still only limited risk for bankruptcy at the moment.
GHM has a Altman-Z score of 2.70. This is comparable to the rest of the industry: GHM outperforms 44.53% of its industry peers.
The Debt to FCF ratio of GHM is 0.00, which is an excellent value as it means it would take GHM, only 0.00 years of fcf income to pay off all of its debts.
GHM's Debt to FCF ratio of 0.00 is amongst the best of the industry. GHM outperforms 93.75% of its industry peers.
GHM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GHM has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. GHM outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.67
WACC10.07%
2.3 Liquidity
GHM has a Current Ratio of 1.03. This is a normal value and indicates that GHM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.03, GHM is doing worse than 89.84% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that GHM may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, GHM is not doing good in the industry: 80.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
GHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 185.29%, which is quite impressive.
GHM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.04% yearly.
Looking at the last year, GHM shows a quite strong growth in Revenue. The Revenue has grown by 11.21% in the last year.
GHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.11% yearly.
EPS 1Y (TTM)185.29%
EPS 3Y31.04%
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y23.92%
Revenue growth 5Y15.11%
Sales Q2Q%7.35%
3.2 Future
GHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.88% yearly.
Based on estimates for the next years, GHM will show a quite strong growth in Revenue. The Revenue will grow by 10.75% on average per year.
EPS Next Y100.13%
EPS Next 2Y47.61%
EPS Next 3Y49.88%
EPS Next 5YN/A
Revenue Next Year13.92%
Revenue Next 2Y11.64%
Revenue Next 3Y10.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
A Price/Earnings ratio of 29.61 indicates a quite expensive valuation of GHM.
Based on the Price/Earnings ratio, GHM is valued a bit more expensive than the industry average as 69.53% of the companies are valued more cheaply.
GHM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.63.
The Price/Forward Earnings ratio is 24.41, which indicates a rather expensive current valuation of GHM.
Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than 60.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GHM to the average of the S&P500 Index (20.85), we can say GHM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 24.41 |
4.2 Price Multiples
64.06% of the companies in the same industry are cheaper than GHM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GHM is valued a bit cheaper than the industry average as 64.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.76 | ||
| EV/EBITDA | 17.15 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GHM's earnings are expected to grow with 49.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y47.61%
EPS Next 3Y49.88%
5. Dividend
5.1 Amount
GHM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.72
-1.12 (-3.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.32%
Inst Owner Change0.76%
Ins Owners5.44%
Ins Owner Change0%
Market Cap313.05M
Analysts80
Price Target53.72 (87.05%)
Short Float %2.36%
Short Ratio1.94
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)83.88%
Min EPS beat(2)48.51%
Max EPS beat(2)119.24%
EPS beat(4)4
Avg EPS beat(4)137.46%
Min EPS beat(4)48.51%
Max EPS beat(4)271.29%
EPS beat(8)8
Avg EPS beat(8)226.53%
EPS beat(12)11
Avg EPS beat(12)159.33%
EPS beat(16)11
Avg EPS beat(16)48.88%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)6.71%
Revenue beat(4)2
Avg Revenue beat(4)2.17%
Min Revenue beat(4)-5.92%
Max Revenue beat(4)9.18%
Revenue beat(8)6
Avg Revenue beat(8)7.62%
Revenue beat(12)10
Avg Revenue beat(12)8.35%
Revenue beat(16)11
Avg Revenue beat(16)3.84%
PT rev (1m)0%
PT rev (3m)5.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.83%
EPS NY rev (1m)9.18%
EPS NY rev (3m)3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 24.41 | ||
| P/S | 1.57 | ||
| P/FCF | 16.76 | ||
| P/OCF | 8.57 | ||
| P/B | 2.74 | ||
| P/tB | 5.39 | ||
| EV/EBITDA | 17.15 |
EPS(TTM)0.97
EY3.38%
EPS(NY)1.18
Fwd EY4.1%
FCF(TTM)1.71
FCFY5.97%
OCF(TTM)3.35
OCFY11.66%
SpS18.31
BVpS10.5
TBVpS5.32
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.02% | ||
| ROCE | 9.14% | ||
| ROIC | 6.78% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 22.68% | ||
| OM | 5.65% | ||
| PM (TTM) | 4.6% | ||
| GM | 24.82% | ||
| FCFM | 9.36% |
ROA(3y)-0.88%
ROA(5y)0.06%
ROE(3y)-1.46%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y27.24%
ROICexcg growth 5Y-2.45%
ROICexc growth 3Y-5.33%
ROICexc growth 5Y-18.31%
OM growth 3Y7.23%
OM growth 5Y-5.6%
PM growth 3Y-0.08%
PM growth 5YN/A
GM growth 3Y1.33%
GM growth 5Y-1.72%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 299.97% | ||
| Cap/Sales | 8.93% | ||
| Interest Coverage | 33.15 | ||
| Cash Conversion | 212.07% | ||
| Profit Quality | 203.56% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.7 |
F-Score7
WACC10.07%
ROIC/WACC0.67
Cap/Depr(3y)91.29%
Cap/Depr(5y)101.5%
Cap/Sales(3y)3.08%
Cap/Sales(5y)2.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)185.29%
EPS 3Y31.04%
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y100.13%
EPS Next 2Y47.61%
EPS Next 3Y49.88%
EPS Next 5YN/A
Revenue 1Y (TTM)11.21%
Revenue growth 3Y23.92%
Revenue growth 5Y15.11%
Sales Q2Q%7.35%
Revenue Next Year13.92%
Revenue Next 2Y11.64%
Revenue Next 3Y10.75%
Revenue Next 5YN/A
EBIT growth 1Y112.06%
EBIT growth 3Y32.88%
EBIT growth 5Y8.67%
EBIT Next Year232.09%
EBIT Next 3Y78.93%
EBIT Next 5YN/A
FCF growth 1Y1.07%
FCF growth 3YN/A
FCF growth 5Y29.29%
OCF growth 1Y71.57%
OCF growth 3YN/A
OCF growth 5Y30.71%