Graham Corporation
Graham Corporation Fundamental Analysis
Graham Corporation (GHM) shows moderate financial fundamentals with a PE ratio of 59.47, profit margin of 6.28%, and ROE of 11.90%. The company generates $0.2B in annual revenue with strong year-over-year growth of 13.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GHM's fundamental strength across five key dimensions:
Efficiency Score
WeakGHM struggles to generate sufficient returns from assets.
Valuation Score
WeakGHM trades at a premium to fair value.
Growth Score
ModerateGHM shows steady but slowing expansion.
Financial Health Score
ExcellentGHM maintains a strong and stable balance sheet.
Profitability Score
WeakGHM struggles to sustain strong margins.
Key Financial Metrics
Is GHM Expensive or Cheap?
P/E Ratio
GHM trades at 59.47 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GHM's PEG of 6.76 indicates potential overvaluation.
Price to Book
The market values Graham Corporation at 6.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 36.76 times EBITDA. This signals the market has high growth expectations.
How Well Does GHM Make Money?
Net Profit Margin
For every $100 in sales, Graham Corporation keeps $6.28 as profit after all expenses.
Operating Margin
Core operations generate 7.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.90 in profit for every $100 of shareholder equity.
ROA
Graham Corporation generates $5.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Graham Corporation generates limited operating cash flow of $12.62M, signaling weaker underlying cash strength.
Free Cash Flow
Graham Corporation generates weak or negative free cash flow of $-6.16M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.56 in free cash annually.
FCF Yield
GHM converts -0.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How GHM Stacks Against Its Sector Peers
| Metric | GHM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.47 | 26.76 | Worse (Expensive) |
| ROE | 11.90% | 1300.00% | Weak |
| Net Margin | 6.28% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.06 | 10.68 | Neutral |
| ROA | 5.10% | -1545134.00% (disorted) | Weak |
GHM outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Graham Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
492.81%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
1680.79%
Industry Style: Cyclical, Value, Infrastructure
High Growth