GHM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
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 4.76% is in line compared to the rest of the industry. GHM outperforms 58.33% of its industry peers.
With a decent Return On Equity value of 10.71%, GHM is doing good in the industry, outperforming 65.15% of the companies in the same industry.
GHM has a Return On Invested Capital of 10.15%. This is in the better half of the industry: GHM outperforms 73.48% of its industry peers.
GHM had an Average Return On Invested Capital over the past 3 years of 5.20%. This is below the industry average of 10.20%.
The 3 year average ROIC (5.20%) for GHM is below the current ROIC(10.15%), indicating increased profibility in the last year.

		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 (6.00%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GHM has grown nicely.
GHM has a Operating Margin (7.46%) 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 24.89%, GHM is doing worse than 65.91% of the companies in the same industry.
In the last couple of years the Gross Margin of GHM has grown nicely.

		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.
Compared to 5 years ago, GHM has more shares outstanding
Compared to 1 year ago, GHM has an improved debt to assets ratio.

2.2 Solvency

GHM has an Altman-Z score of 4.46. This indicates that GHM is financially healthy and has little risk of bankruptcy at the moment.
GHM has a better Altman-Z score (4.46) than 68.18% 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 better Debt to Equity ratio (0.00) than 87.12% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	4.46

ROIC/WACC1.05

WACC9.67%

2.3 Liquidity

A Current Ratio of 1.05 indicates that GHM should not have too much problems paying its short term obligations.
GHM has a Current ratio of 1.05. This is amonst the worse of the industry: GHM underperforms 87.12% of its industry peers.
A Quick Ratio of 0.77 indicates that GHM may have some problems paying 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

The Earnings Per Share has grown by an impressive 69.14% over the past year.
Measured over the past years, GHM shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.88% on average per year.
The Revenue has grown by 16.04% 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)16.04%

Revenue growth 3Y19.56%

Revenue growth 5Y18.3%

Sales Q2Q%23.27%

3.2 Future

GHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.04% yearly.
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

A Price/Earnings ratio of 51.04 indicates a quite expensive valuation of GHM.
Compared to the rest of the industry, the Price/Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 67.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.30. GHM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 38.18, which means the current valuation is very expensive for GHM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GHM indicates a slightly more expensive valuation: GHM is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. GHM is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	51.04
Fwd PE	38.18

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GHM is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	32.63

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GHM's earnings are expected to grow with 21.04% in the coming years.