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 is valued quite expensively, but it does show have an excellent growth rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year GHM was profitable.
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

GHM's Return On Assets of 4.76% is in line compared to the rest of the industry. GHM outperforms 58.33% of its industry peers.
GHM's Return On Equity of 10.71% is fine compared to the rest of the industry. GHM outperforms 65.15% of its industry peers.
GHM has a better Return On Invested Capital (10.15%) than 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 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

GHM has a Profit Margin of 6.00%. This is comparable to the rest of the industry: GHM outperforms 53.79% of its industry peers.
GHM's Profit Margin has improved in the last couple of years.
GHM has a Operating Margin (7.46%) which is in line with its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GHM is creating some value.
GHM has more shares outstanding than it did 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

An Altman-Z score of 4.38 indicates that GHM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.38, GHM is in the better half of the industry, outperforming 66.67% 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 86.36% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	4.38

ROIC/WACC1.05

WACC9.68%

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.
With a Current ratio value of 1.05, GHM is not doing good in the industry: 87.12% 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 0.77 is on the low side compared to the rest of the industry. GHM is outperformed by 79.55% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.05
Quick Ratio	0.77

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

GHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.14%, which is quite impressive.
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%.
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)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

The Earnings Per Share is expected to grow by 21.04% on average over the next years. This is a very strong growth
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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 51.82, GHM can be considered very expensive at the moment.
GHM's Price/Earnings ratio is a bit more expensive when compared to the industry. GHM is more expensive than 67.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.39, GHM is valued quite expensively.
The Price/Forward Earnings ratio is 38.77, which means the current valuation is very expensive for GHM.
65.91% of the companies in the same industry are cheaper than GHM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, GHM is valued quite expensively.

		Industry Rank	Sector Rank
PE	51.82
Fwd PE	38.77

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than 71.97% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	31.79

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GHM does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 21.04% in the coming years.