GRAHAM CORP (GHM) Stock Fundamental Analysis
USA - NYSE:GHM - US3845561063 - Common Stock
60.9 USD
+1.41 (+2.37%)
60.9 USD
0 (0%)
GHM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 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 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
GHM's Return On Assets of 5.49% is fine compared to the rest of the industry. GHM outperforms 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 11.23%, GHM is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.42%, GHM is doing good in the industry, outperforming 73.85% of the companies in the same industry.
GHM had an Average Return On Invested Capital over the past 3 years of 5.20%. This is significantly below the industry average of 10.28%.
The last Return On Invested Capital (10.42%) for GHM is above the 3 year average (5.20%), which is a sign of increasing profitability.
| 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 (6.43%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GHM has grown nicely.
The Operating Margin of GHM (7.88%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GHM has grown nicely.
GHM has a worse Gross Margin (25.63%) than 64.62% 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
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.
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 4.77. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.77, GHM is doing good in the industry, outperforming 75.38% 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.
The Debt to Equity ratio of GHM (0.00) is better than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.77 |
ROIC/WACC1.09
WACC9.57%
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: 86.92% 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.
With a Quick ratio value of 0.74, GHM is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
| 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 69.14% over the past year.
The Earnings Per Share has been growing by 34.88% on average over the past years. This is a very strong growth
The Revenue has grown by 13.13% in the past year. This is quite good.
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)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%23.28%
3.2 Future
The Earnings Per Share is expected to grow by 21.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, GHM will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
EPS Next Y2.51%
EPS Next 2Y21.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.48%
Revenue Next 2Y10.84%
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.
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 44.45, the valuation of GHM can be described as expensive.
Based on the Price/Earnings ratio, GHM is valued a bit more expensive than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, GHM is valued quite expensively.
GHM is valuated quite expensively with a Price/Forward Earnings ratio of 32.90.
Based on the Price/Forward Earnings ratio, GHM is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 34.43. GHM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.45 | ||
| Fwd PE | 32.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.58 |
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 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 21.70% in the coming years.
PEG (NY)17.72
PEG (5Y)1.27
EPS Next 2Y21.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GHM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.9
+1.41 (+2.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change0.17%
Ins Owners5.68%
Ins Owner Change6.52%
Market Cap668.68M
Revenue(TTM)209.90M
Net Income(TTM)13.86M
Analysts77.5
Price Target65.79 (8.03%)
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)-1.27%
EPS NY rev (3m)3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.45 | ||
| Fwd PE | 32.9 | ||
| P/S | 3.1 | ||
| P/FCF | N/A | ||
| P/OCF | 50.12 | ||
| P/B | 5.42 | ||
| P/tB | 9.83 | ||
| EV/EBITDA | 28.58 |
EPS(TTM)1.37
EY2.25%
EPS(NY)1.85
Fwd EY3.04%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)1.22
OCFY2%
SpS19.62
BVpS11.24
TBVpS6.2
PEG (NY)17.72
PEG (5Y)1.27
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 | 4.77 |
F-Score7
WACC9.57%
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)69.14%
EPS 3YN/A
EPS 5Y34.88%
EPS Q2Q%0%
EPS Next Y2.51%
EPS Next 2Y21.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.56%
Revenue growth 5Y18.3%
Sales Q2Q%23.28%
Revenue Next Year11.48%
Revenue Next 2Y10.84%
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 grow by 2.51% in the next year.