NYSE:GRAF

Stock Analysis Report

Executive Summary

Graf Industrial Corp. intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with industrial companies in diversified industrial manufacturing, technology, distribution, and service businesses in the United States and Canada.


Snowflake Analysis

Questionable track record with weak fundamentals.

Share Price & News

How has Graf Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRAF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

GRAF

1.7%

US Capital Markets

1.5%

US Market


1 Year Return

4.4%

GRAF

19.0%

US Capital Markets

20.1%

US Market

Return vs Industry: GRAF underperformed the US Capital Markets industry which returned 19% over the past year.

Return vs Market: GRAF underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

GRAFIndustryMarket
7 Day0%1.7%1.5%
30 Day1.2%0.5%1.4%
90 Day1.3%8.6%8.7%
1 Year4.4%4.4%21.4%19.0%22.7%20.1%
3 Yearn/a40.0%32.1%50.1%40.5%
5 Yearn/a83.6%66.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is Graf Industrial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Graf Industrial undervalued compared to its fair value and its price relative to the market?

62.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GRAF ($10.23) is trading above our estimate of fair value ($5.76)

Significantly Below Fair Value: GRAF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate GRAF's PE Ratio to determine if it is good value compared to the Capital Markets industry average.

PE vs Market: Insufficient data to calculate GRAF's PE Ratio to determine if it is good value compared to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRAF is overvalued based on its PB Ratio (62.3x) compared to the US Capital Markets industry average (6.7x).


Next Steps

Future Growth

How is Graf Industrial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Graf Industrial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Graf Industrial performed over the past 5 years?

16.6%

Historical Diversified Financials annual earnings growth


Earnings and Revenue History

Quality Earnings: GRAF has high quality earnings.

Growing Profit Margin: Insufficient data to determine if GRAF's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if GRAF's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare GRAF's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if GRAF's earnings growth over the past year exceeded the Capital Markets industry average.


Return on Equity

High ROE: GRAF's Return on Equity (163%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Graf Industrial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GRAF has a low level of unsold assets or inventory.

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GRAF is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if GRAF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: GRAF's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if GRAF has a sufficient allowance for bad loans.

Low Risk Liabilities: GRAF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GRAF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GRAF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GRAF has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GRAF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GRAF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GRAF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GRAF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRAF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure


CEO

James Graf (54yo)

1.7yrs

Tenure

0

Mr. James A. Graf has been the Chief Executive Officer at Graf Industrial Corp. since June 2018 and served as Director since June 2018 until October 17, 2019. He serves as Co-Founder and Chief Executive Of ...


Board Members

NamePositionTenureCompensationOwnership
Michael Dee
President1.3yrsno data0.16% $511.7k
Keith Abell
Independent Director1.3yrsno datano data
Julie Levenson
Independent Director0.3yrsno data0.059% $184.1k
Kevin Starke
Director1.3yrsno datano data
Sabrina McKee
Independent Director1.3yrsno data0.082% $255.8k

1.3yrs

Average Tenure

61yo

Average Age

Experienced Board: GRAF's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Graf Industrial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Graf Industrial Corp.
  • Ticker: GRAF
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$311.715m
  • Shares outstanding: 30.47m
  • Website: https://www.grafacq.com

Location

  • Graf Industrial Corp.
  • 118 Vintage Park Boulevard
  • Suite W-222
  • Houston
  • Texas
  • 77070
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRAF.UNYSE (New York Stock Exchange)UnitsUSUSDOct 2018
GRAFNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2018
0K6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2018

Biography

Graf Industrial Corp. intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with industrial companies in diversified industrial manufacturing, technology, distribution, and service businesses in the United States and Canada. The company was founded in 2018 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:45
End of Day Share Price2020/02/13 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.