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Graham Corp (GHM) stock analysis

GHMNYSEGeneral Industrial Machinery & EquipmentFiscal year ends March 31
Financials through Q2 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 15/3046% above fair value
$86.69−1.55 (-1.76%)

Close on Nov 11, 2026Market cap $1.02BP/E 75.4Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth5Performance3Health6Dividend0

Solid15 of 30 checks passed

Graham passes 15 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
5/6
Past performance
3/6
Financial health
6/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

  • No debt

    Graham has no borrowings on its latest balance sheet.

  • Earnings grew over 5 years

    Net income grew 39.4% a year on average over the last five fiscal years.

  • Revenue growing 10%+ a year

    Revenue grew 16.0% a year over the last three fiscal years.

What to watch

  • Margin of safety under 20%

    The price is 46.0% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $86.69 is above our fair value estimate of $59.39.

  • Return on equity under 15%

    Return on equity was 8.2% over the last twelve months and averaged 3.3% over five years; we look for 15% on both.

  • Earnings growth not accelerating

    Net income grew -2.2% over the last twelve months, against a 5-year average of 39.4% a year.

Valuation1/6

  • P/E above its 5-year median

    Graham's P/E of 75.4 is above its own 5-year median of 67.7.

  • P/E above the industry

    Graham's P/E of 75.4 is above the General Industrial Machinery and Equipment median of 26.9.

  • EV/EBITDA below its 5-year median

    Graham's EV/EBITDA of 36.5 is below its 5-year median of 40.7.

  • P/B above the industry

    Graham's price-to-book of 5.13 is above the General Industrial Machinery and Equipment median of 2.84.

  • Trading above fair value

    The share price of $86.69 is above our fair value estimate of $59.39.

  • Margin of safety under 20%

    The price is 46.0% above fair value, so there is no margin of safety.

Growth5/6

  • Revenue growing 10%+ a year

    Revenue grew 16.0% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 234% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew -2.2% over the last twelve months, against a 5-year average of 39.4% a year.

  • Growing faster than the industry

    Revenue grew 16.2% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

  • Guidance raised

    Graham raised its Fiscal 2027 Effective Tax Rate outlook on Aug 6, 2026.

  • Gross margin improving

    Gross margin was 25.0% over the last twelve months, against 24.9% a year earlier.

Past performance3/6

  • Return on equity under 15%

    Return on equity was 8.2% over the last twelve months and averaged 3.3% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Graham's return on equity of 8.2% is below the General Industrial Machinery and Equipment median of 9.9%.

  • Earnings grew over 5 years

    Net income grew 39.4% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 5.0% over the last twelve months, against a 5-year average of 1.3%.

  • Net margin below the industry

    Graham's net margin of 5.0% is below the General Industrial Machinery and Equipment median of 8.0%.

Financial health6/6

  • No debt

    Graham has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 1.24 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 4.59; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Graham has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$59.39

The share price is 46% above this estimate.

20%+ below
Near fair value
20%+ above
$86.69Price$59.39Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E45.0×67.7×26.9×$51.7547%
EV/EBITDA29.6×40.7×18.3×$71.3741%
P/B2.8×2.8×2.8×$48.0012%
Earnings powerleft out, too far from the others10.4% cost of equity––$13.39–
Fair value$59.39100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 67.7
  • General Industrial Machinery and Equipment median 26.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$18.36M
Value traded per 1% price move
$6.14M

Downside

Medium risk

Typical loss in a bad month
24.6%
Volatility (annualized)
57%
Sharpe ratio, 1 year
0.63
Beta to the S&P 500 (5Y)
1.11

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

23.5%+2.5 pts over 5 years

Operating margin

6.1%+3.0 pts over 5 years

Net margin

5.1%+2.7 pts over 5 years

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