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Graham

NYSE:GHM
Snowflake Description

Excellent balance sheet with reasonable growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GHM
NYSE
$204M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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. The last earnings update was 25 days ago. More info.


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GHM Share Price and Events
7 Day Returns
-0.5%
NYSE:GHM
3.3%
US Machinery
1.4%
US Market
1 Year Returns
-22.4%
NYSE:GHM
6.5%
US Machinery
4.9%
US Market
GHM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Graham (GHM) -0.5% -1% 6% -22.4% 14.8% -40.5%
US Machinery 3.3% 6.9% 4.6% 6.5% 59% 24.3%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • GHM underperformed the Machinery industry which returned 6.5% over the past year.
  • GHM underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
GHM
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Graham to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Graham.

NYSE:GHM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GHM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 21%) (0.07%))
1.045
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.045 * 5.96%)
8.96%

Discounted Cash Flow Calculation for NYSE:GHM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Graham is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GHM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.96%)
2019 11.96 Analyst x2 10.98
2020 6.00 Analyst x2 5.06
2021 8.73 Analyst x2 6.75
2022 9.18 Est @ 5.14% 6.52
2023 9.59 Est @ 4.42% 6.24
2024 9.96 Est @ 3.91% 5.96
2025 10.32 Est @ 3.56% 5.66
2026 10.66 Est @ 3.31% 5.37
2027 10.99 Est @ 3.14% 5.08
2028 11.33 Est @ 3.01% 4.80
Present value of next 10 years cash flows $62.41
NYSE:GHM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $11.33 × (1 + 2.73%) ÷ (8.96% – 2.73%)
$186.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $186.80 ÷ (1 + 8.96%)10
$79.20
NYSE:GHM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $62.41 + $79.20
$141.62
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $141.62 / 9.84
$14.39
NYSE:GHM Discount to Share Price
Calculation Result
Value per share (USD) From above. $14.39
Current discount Discount to share price of $20.75
= -1 x ($20.75 - $14.39) / $14.39
-44.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Graham is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Graham's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Graham's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GHM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.03
NYSE:GHM Share Price ** NYSE (2019-06-25) in USD $20.75
United States of America Machinery Industry PE Ratio Median Figure of 99 Publicly-Listed Machinery Companies 20.42x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Graham.

NYSE:GHM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GHM Share Price ÷ EPS (both in USD)

= 20.75 ÷ -0.03

-661.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Graham's expected growth come at a high price?
Raw Data
NYSE:GHM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -661.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
93.2%per year
United States of America Machinery Industry PEG Ratio Median Figure of 80 Publicly-Listed Machinery Companies 1.46x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Graham, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Graham's assets?
Raw Data
NYSE:GHM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.05
NYSE:GHM Share Price * NYSE (2019-06-25) in USD $20.75
United States of America Machinery Industry PB Ratio Median Figure of 127 Publicly-Listed Machinery Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:GHM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GHM Share Price ÷ Book Value per Share (both in USD)

= 20.75 ÷ 10.05

2.06x

* Primary Listing of Graham.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Graham is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Graham's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Graham has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
93.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Graham expected to grow at an attractive rate?
  • Graham's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Graham's earnings growth is expected to exceed the United States of America market average.
  • Graham's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GHM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GHM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 93.2%
NYSE:GHM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 10.3%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GHM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GHM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 113 11 9 3
2020-03-31 98 9 6 3
NYSE:GHM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 92 8 0
2018-12-31 90 13 5
2018-09-30 90 13 -7
2018-06-30 86 6 -8
2018-03-31 78 9 -10
2017-12-31 81 6 -9
2017-09-30 86 10 5
2017-06-30 90 11 6
2017-03-31 92 12 5
2016-12-31 88 7 4
2016-09-30 83 14 3
2016-06-30 85 19 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Graham's earnings are expected to grow significantly at over 20% yearly.
  • Graham's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GHM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Graham Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GHM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 0.94 1.09 0.75 3.00
2020-03-31 0.60 0.69 0.54 3.00
NYSE:GHM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.03
2018-12-31 0.52
2018-09-30 -0.68
2018-06-30 -0.87
2018-03-31 -1.01
2017-12-31 -0.91
2017-09-30 0.47
2017-06-30 0.60
2017-03-31 0.52
2016-12-31 0.38
2016-09-30 0.33
2016-06-30 0.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Graham is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Graham's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Graham has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Graham performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Graham's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Graham's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Graham Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GHM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 91.83 -0.31 17.16
2018-12-31 90.37 5.08 17.92
2018-09-30 90.45 -6.64 17.53
2018-06-30 86.23 -8.46 16.31
2018-03-31 77.53 -9.84 15.52
2017-12-31 80.98 -8.88 15.17
2017-09-30 86.35 4.59 15.06
2017-06-30 90.26 5.87 14.68
2017-03-31 91.77 5.02 14.63
2016-12-31 88.45 3.74 14.35
2016-09-30 83.12 3.18 14.28
2016-06-30 84.79 3.86 15.35
2016-03-31 90.04 6.13 16.33
2015-12-31 105.19 9.78 17.32
2015-09-30 121.52 12.49 18.06
2015-06-30 134.28 14.70 18.57
2015-03-31 135.17 14.74 18.28
2014-12-31 123.80 12.89 17.60
2014-09-30 113.54 10.33 17.22
2014-06-30 102.46 8.73 16.92
2014-03-31 102.22 10.15 16.97
2013-12-31 107.04 11.92 17.58
2013-09-30 109.28 13.54 17.64
2013-06-30 110.70 13.57 17.63
2013-03-31 104.97 11.15 17.31
2012-12-31 94.32 7.48 15.85
2012-09-30 93.01 6.07 15.51
2012-06-30 100.71 8.93 15.47

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess Graham's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Graham has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Graham's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Graham's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Graham's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 923.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Graham Company Filings, last reported 2 months ago.

NYSE:GHM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 98.97 0.00 77.75
2018-12-31 104.81 0.00 80.41
2018-09-30 105.25 0.00 78.99
2018-06-30 103.95 0.00 75.29
2018-03-31 103.35 0.00 76.48
2017-12-31 101.94 0.00 74.18
2017-09-30 113.87 0.00 72.10
2017-06-30 114.20 0.00 75.26
2017-03-31 114.11 0.00 73.47
2016-12-31 110.94 0.00 72.68
2016-09-30 109.65 0.00 66.27
2016-06-30 108.67 0.00 67.71
2016-03-31 109.38 0.00 65.07
2015-12-31 115.07 0.00 73.22
2015-09-30 116.76 0.00 62.42
2015-06-30 118.62 0.00 62.62
2015-03-31 116.55 0.00 60.27
2014-12-31 116.26 0.00 62.50
2014-09-30 112.42 0.00 64.80
2014-06-30 108.17 0.00 61.41
2014-03-31 105.91 0.00 61.15
2013-12-31 101.71 0.00 63.91
2013-09-30 100.00 0.00 54.86
2013-06-30 96.96 0.00 53.19
2013-03-31 93.00 0.00 51.69
2012-12-31 89.20 0.00 55.11
2012-09-30 85.99 0.00 46.92
2012-06-30 83.10 0.00 46.62
  • Graham's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.2% vs 0.1% today).
  • Debt is well covered by operating cash flow (5422.6%, greater than 20% of total debt).
  • Graham is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Graham's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Graham has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.93%
Current annual income from Graham dividends. Estimated to be 2.19% next year.
If you bought $2,000 of Graham shares you are expected to receive $39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Graham's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Graham's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GHM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GHM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 0.48 1.00
2020-03-31 0.43 1.00
NYSE:GHM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-29 0.400 1.947
2019-01-29 0.400 1.902
2018-11-07 0.400 1.691
2018-08-02 0.400 1.495
2018-05-30 0.360 1.385
2018-01-31 0.360 1.638
2017-10-24 0.360 1.772
2017-08-03 0.360 1.767
2017-05-31 0.360 1.793
2016-10-31 0.360 1.633
2016-07-28 0.360 1.931
2016-05-24 0.360 1.918
2016-01-28 0.360 1.969
2015-10-27 0.320 1.897
2015-07-29 0.320 1.802
2015-05-28 0.320 1.602
2015-01-29 0.320 1.369
2014-10-28 0.160 0.560
2014-07-30 0.160 0.528
2014-05-29 0.160 0.490
2014-01-30 0.160 0.500
2013-10-24 0.120 0.330
2013-07-24 0.120 0.342
2013-05-30 0.120 0.410
2013-01-31 0.120 0.505
2012-10-26 0.080 0.412
2012-07-26 0.080 0.439
2012-05-30 0.080 0.448
2012-03-28 0.080 0.386
2011-10-27 0.080 0.351
2011-07-28 0.080 0.468
2011-05-26 0.080 0.400
2011-03-16 0.080 0.349
2010-10-28 0.080 0.403
2010-05-20 0.080 0.526
2010-03-11 0.080 0.435
2009-10-29 0.080 0.447
2009-07-31 0.080 0.555

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Graham's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Graham's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Graham afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Graham has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Lines
COMPENSATION $1,129,800
AGE 57
TENURE AS CEO 11.4 years
CEO Bio

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 has been employed with Graham Corporation since 1984. He served as Vice President and General Manager at Graham Corporation since 2005 and Chief Operating Officer since June 14, 2006. He has served in various executive capacities at Graham Corporation for more than 20 years and has more than 30 years of experience interacting with its customers, 2015 engineering contractors, competitors and similar companies serving the energy markets. He served as Vice President of Marketing and Sales at Graham Corporation from 1995 to 2005 and served as its Vice President of Engineering. Prior to joining Graham's senior management team, he was an Application Engineer, Sales Engineer and Product Supervisor. He has been an Independent Director of Superior Drilling Products, Inc. since December 2016. Mr. Lines studied Bachelor of Science degree in Aerospace Engineering from the State University of New York at Buffalo.

CEO Compensation
  • Jim's compensation has increased whilst company is loss making.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Graham management team in years:

10.3
Average Tenure
55
Average Age
  • The average tenure for the Graham management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Lines

TITLE
President
COMPENSATION
$1M
AGE
57
TENURE
11.4 yrs

Jeff Glajch

TITLE
VP of Finance & Administration
COMPENSATION
$500K
AGE
55
TENURE
10.3 yrs

Jennifer Condame

TITLE
Chief Accounting Officer & Controller
COMPENSATION
$352K
AGE
53
TENURE
10.9 yrs

Alan Smith

TITLE
VP & GM of Batavia
COMPENSATION
$553K
AGE
51
TENURE
3.8 yrs

John Rice

TITLE
Vice President of Sales
AGE
59
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Graham board of directors in years:

6.9
Average Tenure
63
Average Age
  • The tenure for the Graham board of directors is about average.
Board of Directors

James Malvaso

TITLE
Chairman of the Board
COMPENSATION
$63K
AGE
68
TENURE
4.2 yrs

Jim Lines

TITLE
President
COMPENSATION
$1M
AGE
57
TENURE
12.9 yrs

Gerard Mazurkiewicz

TITLE
Independent Director
COMPENSATION
$54K
AGE
71
TENURE
11.8 yrs

Alan Fortier

TITLE
Independent Director
COMPENSATION
$47K
AGE
61
TENURE
10.9 yrs

Lisa Schnorr

TITLE
Independent Director
COMPENSATION
$52K
AGE
52
TENURE
5.4 yrs

Jim Barber

TITLE
Independent Director
COMPENSATION
$47K
AGE
65
TENURE
8.4 yrs

Jon Painter

TITLE
Independent Director
COMPENSATION
$48K
AGE
59
TENURE
5.4 yrs

Jerald Bidlack

TITLE
Director Emeritus
COMPENSATION
$107K
AGE
82
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Sep 18 Sell Jeffrey Glajch Individual 10. Sep 18 10. Sep 18 -1,844 $27.25 $-50,249
10. Sep 18 Sell Gerard Mazurkiewicz Individual 07. Sep 18 07. Sep 18 -300 $26.44 $-7,932
20. Aug 18 Sell Jeffrey Glajch Individual 17. Aug 18 17. Aug 18 -2,963 $28.42 $-84,030
X
Management checks
We assess Graham's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Graham has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Type Of Shareholder Owns Graham Corporation's (NYSE:GHM)?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … Check out our latest analysis for Graham NYSE:GHM Ownership Summary, June 24th 2019 What Does The Institutional Ownership Tell Us About Graham? … NYSE:GHM Income Statement, June 24th 2019 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences.

Simply Wall St -

Is Graham Corporation's (NYSE:GHM) CEO Pay Justified?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Graham How Does Jim Lines's Compensation Compare With Similar Sized Companies? … Our data indicates that Graham Corporation is worth US$201m, and total annual CEO compensation is US$1.1m.

Simply Wall St -

A Closer Look At Graham Corporation's (NYSE:GHM) Uninspiring ROE

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Graham: 4.8% = US$5.1m ÷ US$105m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Shareholders Should Look Hard At Graham Corporation’s (NYSE:GHM) 4.0% Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Graham Corporation (NYSE:GHM) Has Attractive Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Why Graham Corporation (NYSE:GHM) Could Be Worth Watching

saw significant share price movement during recent months on the NYSE, rising to highs of $24.52 and falling to the lows of $19.11. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at Graham’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Does Graham Corporation (NYSE:GHM) Have A Place In Your Portfolio?

Historically, Graham Corporation (NYSE:GHM) has paid a dividend to shareholders. … Does Graham tick all the boxes of a great dividend stock? … 5 questions I ask before picking a dividend stock

Simply Wall St -

Do Institutions Own Graham Corporation (NYSE:GHM) Shares?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … With a market capitalization of US$222m, Graham is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Graham Corporation's (NYSE:GHM)

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Graham … How Does Jim Lines's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Can Graham Corporation (NYSE:GHM) Improve Its Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.048 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Company Info

Description

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. It offers heat transfer equipment, including surface condensers, heliflows, water heaters, and various types of heat exchangers, as well as custom-engineered ejectors; and vacuum equipment, such as steam jet ejector vacuum systems and liquid ring vacuum pumps. The company also services and sells spare parts for its equipment. In addition, it engages in fabrication and machining activities. The company sells its products directly, as well as through independent sales representatives. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

Details
Name: Graham Corporation
GHM
Exchange: NYSE
Founded: 1936
$204,238,162
9,842,803
Website: http://www.graham-mfg.com
Address: Graham Corporation
20 Florence Avenue,
Batavia,
New York, 14020,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GHM Common Stock New York Stock Exchange US USD 07. Jul 1978
Number of employees
Current staff
Staff numbers
337
Graham employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 23:40
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/05/31
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.