Market Cap
US$139.5m
Last Updated
2021/04/17 23:28 UTC
Data Sources
Company Financials +
Executive Summary
Graham Corporation, together with its subsidiaries, designs, manufactures, and supplies vacuum and heat transfer equipment for the chemical, defense, petrochemical, petroleum refining, electric power generation, and other industries. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Graham's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GHM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: GHM's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
GHM
1.1%
US Machinery
1.3%
US Market
1 Year Return
20.5%
GHM
88.6%
US Machinery
53.9%
US Market
Return vs Industry: GHM underperformed the US Machinery industry which returned 88.6% over the past year.
Return vs Market: GHM underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| GHM | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | 1.1% | 1.3% |
| 30 Day | -11.0% | 1.3% | 5.3% |
| 90 Day | -7.4% | 13.3% | 8.9% |
| 1 Year | 24.5%20.5% | 93.2%88.6% | 56.6%53.9% |
| 3 Year | -30.3%-35.0% | 61.7%50.2% | 64.4%53.6% |
| 5 Year | -16.6%-25.1% | 158.7%132.4% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Graham's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
At US$13.91, Is It Time To Put Graham Corporation (NYSE:GHM) On Your Watch List?3 weeks ago | Simply Wall St
Graham (NYSE:GHM) Will Be Looking To Turn Around Its Returns1 month ago | Simply Wall St
Is Graham Corporation (NYSE:GHM) Popular Amongst Institutions?Valuation
Is Graham undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GHM ($14.04) is trading below our estimate of fair value ($36.19)
Significantly Below Fair Value: GHM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GHM is poor value based on its PE Ratio (54.4x) compared to the US Machinery industry average (35.8x).
PE vs Market: GHM is poor value based on its PE Ratio (54.4x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: GHM is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: GHM is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (3.3x).
Future Growth
How is Graham forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
41.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GHM's forecast earnings growth (41.6% per year) is above the savings rate (2%).
Earnings vs Market: GHM's earnings (41.6% per year) are forecast to grow faster than the US market (18% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GHM's revenue (8.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: GHM's revenue (8.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GHM's Return on Equity is forecast to be low in 3 years time (5.3%).
Past Performance
How has Graham performed over the past 5 years?
-28.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GHM has high quality earnings.
Growing Profit Margin: GHM became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: GHM's earnings have declined by 28.8% per year over the past 5 years.
Accelerating Growth: GHM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: GHM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-13.3%).
Return on Equity
High ROE: GHM's Return on Equity (2.6%) is considered low.
Financial Health
How is Graham's financial position?
Financial Position Analysis
Short Term Liabilities: GHM's short term assets ($123.2M) exceed its short term liabilities ($44.5M).
Long Term Liabilities: GHM's short term assets ($123.2M) exceed its long term liabilities ($3.2M).
Debt to Equity History and Analysis
Debt Level: GHM is debt free.
Reducing Debt: GHM has not had any debt for past 5 years.
Debt Coverage: GHM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: GHM has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Graham current dividend yield, its reliability and sustainability?
3.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GHM's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: GHM's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: GHM's dividends per share have been stable in the past 10 years.
Growing Dividend: GHM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (170.6%), GHM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.4yrs
Average management tenure
CEO
Jim Lines (59 yo)
13.25yrs
Tenure
US$1,612,434
Compensation
Mr. James R. Lines, also known as Jim, has been the Chief Executive Officer of Graham Corporation since January 25, 2008, President since June 14, 2006 and Executive Director since July 27, 2006. Mr. Lines...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD1.61M) is above average for companies of similar size in the US market ($USD543.87K).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GHM's management team is seasoned and experienced (12.4 years average tenure).
Board Members
Experienced Board: GHM's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GHM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Graham Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Graham Corporation
- Ticker: GHM
- Exchange: NYSE
- Founded: 1936
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$139.459m
- Shares outstanding: 9.99m
- Website: https://www.graham-mfg.com
Number of Employees
Location
- Graham Corporation
- 20 Florence Avenue
- Batavia
- New York
- 14020
- United States
Listings
Biography
Graham Corporation, together with its subsidiaries, designs, manufactures, and supplies vacuum and heat transfer equipment for the chemical, defense, petrochemical, petroleum refining, electric power gener...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 23:28 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.