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 with reasonable growth potential.


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

-2.5%

NYSE:GHM

3.4%

US Machinery

2.9%

US Market


1 Year Return

-32.0%

NYSE:GHM

-6.6%

US Machinery

0.2%

US Market

GHM underperformed the Machinery industry which returned -8% over the past year.

GHM underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

GHMIndustryMarket
7 Day-2.5%3.4%2.9%
30 Day-6.1%-7.4%-2.3%
90 Day-11.9%-0.1%3.1%
1 Year-30.7%-32.0%-4.7%-6.6%2.4%0.2%
3 Year1.1%-4.1%37.3%28.3%41.7%32.4%
5 Year-32.4%-38.0%37.8%20.7%55.1%37.9%

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

Graham's share price is below the future cash flow value, and at a moderate discount (> 20%).

Graham's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Graham is loss making, we can't compare its value to the US Machinery industry average.

Graham is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Graham, we can't assess if its growth is good value.


Price Based on Value of Assets

Graham is good value based on assets compared to the US Machinery industry average.


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

Graham's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).

Graham's earnings are expected to grow significantly at over 20% yearly.

Graham's revenue growth is expected to exceed the United States of America market average.

Graham's earnings growth is expected to exceed the United States of America market average.

Graham's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Graham will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Graham does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Graham's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Graham's 1-year growth to the US Machinery industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Graham has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Graham has efficiently used its assets last year compared to the US Machinery industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Graham improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Graham's financial position?


Financial Position Analysis

Graham is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Graham's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Graham has no debt.

Graham has not taken on any debt in the past 5 years.

Graham has no debt, it does not need to be covered by operating cash flow.

Graham has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Graham has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.43%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Graham's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Graham's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Jim Lines (58yo)

11.6yrs

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

Jim's remuneration is about average for companies of similar size in United States of America.

Jim's compensation has increased whilst company is loss making.


Management Age and Tenure

10.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Graham management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.1yrs

Average Tenure

64yo

Average Age

The tenure for the Graham board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$50,24911 Sep 18
Jeffrey Glajch
EntityIndividual
Role
Chief Financial Officer
VP of Finance & Administration
Shares1,844
Max PriceUS$27.25
SellUS$7,93210 Sep 18
Gerard Mazurkiewicz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$26.44

Ownership Breakdown


Management Team

  • Jim Lines (58yo)

    President

    • Tenure: 11.6yrs
    • Compensation: US$1.18m
  • Jennifer Condame (54yo)

    Chief Accounting Officer & Controller

    • Tenure: 11.1yrs
    • Compensation: US$385.61k
  • Jeff Glajch (56yo)

    VP of Finance & Administration

    • Tenure: 10.4yrs
    • Compensation: US$572.63k
  • John Rice (60yo)

    Vice President of Sales

    • Tenure: 1.5yrs
    • Compensation: US$556.61k

Board Members

  • Jerald Bidlack (83yo)

    Director Emeritus

    • Tenure: 4.3yrs
    • Compensation: US$107.06k
  • Jim Lines (58yo)

    President

    • Tenure: 11.6yrs
    • Compensation: US$1.18m
  • Jon Painter (60yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$47.76k
  • James Malvaso (69yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$64.51k
  • Gerard Mazurkiewicz (72yo)

    Independent Director

    • Tenure: 12.0yrs
    • Compensation: US$49.76k
  • Jim Barber (66yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$48.76k
  • Lisa Schnorr (53yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$53.26k
  • Alan Fortier (62yo)

    Independent Director

    • Tenure: 11.1yrs
    • 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$185.364m
  • 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 Analysis2019/08/21 23:36
End of Day Share Price2019/08/21 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.