NYSE:GHM

Stock Analysis Report

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 worldwide.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.6%

GHM

3.2%

US Machinery

1.0%

US Market


1 Year Return

-26.1%

GHM

2.3%

US Machinery

6.7%

US Market

Return vs Industry: GHM underperformed the US Machinery industry which returned 2.3% over the past year.

Return vs Market: GHM underperformed the US Market which returned 6.7% over the past year.


Share holder returns

GHMIndustryMarket
7 Day0.6%3.2%1.0%
30 Day2.0%-3.5%-1.8%
90 Day1.0%-4.6%-1.8%
1 Year-24.7%-26.1%4.5%2.3%9.1%6.7%
3 Year10.3%4.6%46.3%36.8%46.1%36.6%
5 Year-29.9%-35.7%60.6%41.3%66.9%48.6%

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

Valuation

Is Graham undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GHM ($19.72) is trading below our estimate of fair value ($40.01)

Significantly Undervalued: GHM is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: GHM is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: GHM is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate GHM's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: GHM is good value based on its PB Ratio (2x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Graham expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

95.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GHM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GHM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GHM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GHM's revenue (15.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GHM's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if GHM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Graham performed over the past 5 years?

-51.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GHM is unprofitable, and losses have increased over the past 5 years at a rate of -51.5% per year.

Accelerating Growth: Unable to compare GHM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GHM is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (18.7%).


Return on Equity

High ROE: GHM has a negative Return on Equity (-2.6%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: GHM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: GHM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Graham's financial position?


Financial Position Analysis

Short Term Liabilities: GHM's short term assets ($123.6M) exceeds its short term liabilities ($44.5M)

Long Term Liabilities: GHM's short term assets (123.6M) exceeds its long term liabilities (2.8M)


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

Inventory Level: GHM has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GHM's debt is covered by short term assets.


Next Steps

Dividend

What is Graham's current dividend yield, its reliability and sustainability?

2.31%

Expected Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years2.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GHM's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GHM's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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: GHM is paying a dividend but the company is unprofitable.


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

What is the CEO of Graham's salary, the management and board of directors tenure and is there insider trading?

10.9yrs

Average management tenure


CEO

Jim Lines (58yo)

11.8yrs

Tenure

US$1,177,444

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 ($USD1.18M) is about average for companies of similar size in the US market ($USD1.17M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

10.9yrs

Average Tenure

57yo

Average Age

Experienced Management: GHM's management team is seasoned and experienced (10.9 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

64yo

Average Age

Experienced Board: GHM's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: GHM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,70026 Aug 19
John Rice
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares200
Max PriceUS$18.50

Ownership Breakdown


Management Team

  • Jim Lines (58yo)

    President

    • Tenure: 11.8yrs
    • Compensation: US$1.18m
  • Jennifer Condame (54yo)

    Chief Accounting Officer & Controller

    • Tenure: 11.3yrs
    • Compensation: US$385.61k
  • Jeff Glajch (56yo)

    VP of Finance & Administration

    • Tenure: 10.6yrs
    • Compensation: US$572.63k
  • John Rice (60yo)

    Vice President of Sales

    • Tenure: 1.7yrs
    • Compensation: US$556.61k

Board Members

  • Jerald Bidlack (83yo)

    Director Emeritus

    • Tenure: 4.4yrs
    • Compensation: US$107.06k
  • Jim Lines (58yo)

    President

    • Tenure: 11.8yrs
    • Compensation: US$1.18m
  • Jon Painter (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$47.76k
  • James Malvaso (69yo)

    Independent Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: US$64.51k
  • Gerard Mazurkiewicz (72yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$49.76k
  • Jim Barber (66yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$48.76k
  • Lisa Schnorr (53yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$53.26k
  • Alan Fortier (62yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$50.26k

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$194.849m
  • Shares outstanding: 9.88m
  • Website: https://www.graham-mfg.com

Number of Employees


Location

  • Graham Corporation
  • 20 Florence Avenue
  • Batavia
  • New York
  • 14020
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHMNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1978

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:20
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.

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