Graham (GHM) AI Stock Analysis

• Market Cap: $577.53M
• Dividend Yield: N/A
• Average Volume (3M): 112.34K
• Price to Earnings (P/E): 47.6
• Beta (1Y): 1.67
• Revenue Growth: 13.13%
• EPS Growth: 164.29%
• Country: US
• Employees: 595
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.40
• Shares Outstanding: 10,948,443
• 10 Day Avg. Volume: 149,532
• 30 Day Avg. Volume: 112,344
• PEG Ratio: 1.35
• Price to Book (P/B): 4.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 103.31
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: 8.40
• 1Y Price Target: $58.00
• Price Target Upside: 9.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $56.00 ▲(6.16%Upside)

Graham Corporation's overall stock score of 74 reflects its strong financial performance and positive earnings call insights. However, high valuation metrics and potential technical corrections temper the outlook. Strategic corporate events and management transitions are handled positively, supporting future growth.

Graham Business Overview & Revenue Model

Company Description

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems comprising ejectors and surface condensers; torpedo ejection and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems, including pumps, blowers, and electronics. The company also provides rocket propulsion systems, such as turbopumps and fuel pumps; cooling systems comprising pumps, compressors, fans, and blowers; and life support systems, including fans, pumps, and blowers. In addition, it offers heat transfer and vacuum systems comprising ejectors, process condensers, surface condensers, liquid ring pumps, heat exchangers, and nozzles, as well as turbomachinery products; and power generation systems, including turbines, generators, compressors, and pumps. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

How the Company Makes Money

Graham Corporation generates revenue primarily through the sale of its engineered products and solutions to a diverse customer base, including prominent defense contractors, refineries, and chemical plants. The company earns income by designing and manufacturing customized systems that meet specific client needs and industry standards. Additionally, Graham engages in after-sales services and support, which provides recurring revenue through maintenance, repairs, and upgrades. Strategic partnerships and contracts, especially in the defense sector, also play a significant role in the company's earnings by providing steady, long-term revenue streams.

Graham Financial Statement Overview

Summary

Graham exhibits strong financial performance with substantial revenue and profit growth. The company maintains a solid balance sheet with low leverage and robust equity. Cash flows are improving but have been historically volatile, highlighting a need for stability.

Income Statement

Graham shows a robust improvement in its financial performance, evidenced by substantial revenue growth from the previous year and strong profitability metrics. The gross profit margin stands at 25.19%, reflecting efficient cost management. Notably, the net profit margin improved to 5.83%, showcasing enhanced operational efficiency. The EBIT margin of 7.24% and EBITDA margin of 10.06% further highlight the company's profitability improvements. However, these gains are offset by the volatility seen in past years, where profitability was inconsistent.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.06, indicating conservative leverage and financial stability. The equity ratio is robust at 45.29%, suggesting a solid equity base relative to total assets. Return on equity (ROE) is healthy at 10.23%, reflecting effective utilization of shareholders' equity. Despite these strengths, historical fluctuations in equity and liabilities highlight potential risks.

Cash Flow

Graham's cash flow statements reveal a positive trajectory with improved free cash flow, indicating better cash generation capabilities. The operating cash flow to net income ratio is strong at 1.99, underscoring efficient cash conversion. Free cash flow to net income ratio is 0.44, showing adequate free cash flow relative to earnings. However, historical volatility in cash flows poses a potential risk.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	209.90M	185.53M	43.03M	122.81M	97.49M
Gross Profit	52.86M	40.59M	7.16M	9.13M	20.47M
EBITDA	21.12M	11.25M	7.62M	-5.17M	5.22M
Net Income	12.23M	4.56M	-481.00K	-8.77M	2.37M
Balance Sheet
Total Assets	264.11M	233.88M	203.92M	183.69M	144.28M
Cash, Cash Equivalents and Short-Term Investments	21.58M	16.94M	18.26M	14.74M	65.03M
Total Debt	6.85M	7.77M	20.38M	26.93M	138.00K
Total Liabilities	144.53M	128.31M	106.98M	87.20M	46.35M
Stockholders Equity	119.58M	105.57M	96.93M	96.49M	97.93M
Cash Flow
Free Cash Flow	5.36M	18.89M	10.16M	-4.54M	-3.88M
Operating Cash Flow	24.32M	28.12M	13.91M	-2.22M	-1.72M
Investing Cash Flow	-19.13M	-15.99M	-3.75M	-57.11M	32.40M
Financing Cash Flow	-521.00K	-13.39M	-6.44M	14.42M	-4.45M

Graham Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHM, the sentiment is Positive. The current price of 52.75 is above the 20-day moving average (MA) of 47.26, above the 50-day MA of 40.33, and above the 200-day MA of 37.25, indicating a bullish trend. The MACD of 3.07 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 84.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GHM.

Graham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFLX	76 Outperform	$367.13M	21.14	21.33%	3.74%	-6.47%	-9.76%
LXFR	76 Outperform	$345.36M	16.08	9.61%	4.10%	1.63%	7162.39%
GHM	74 Outperform	$577.53M	47.64	10.86%	―	13.13%	164.29%
TAYD	70 Neutral	$139.46M	19.32	15.52%	―	-1.02%	-7.87%
Sector *	68 Neutral	£2.99B	10.39	7.71%	3.37%	3.01%	-10.61%
TWIN	65 Neutral	$136.95M	33.22	2.77%	1.65%	11.49%	-66.66%
PKOH	62 Neutral	$273.49M	7.20	12.58%	2.60%	-0.59%	190.35%

Graham Corporate Events

Graham Highlights Strategic Growth at Wells Fargo Conference

On June 12, 2025, Graham Corporation participated in the Wells Fargo 2025 Industrials Conference, presenting its strategic focus on margin expansion and disciplined growth through strategic ROIC projects. The company highlighted its strong position in the defense sector, with significant revenue opportunities from U.S. defense budgets and shipbuilding programs, and a projected $1.7 billion revenue opportunity through 2056 based on strategic platform projections.

The most recent analyst rating on (GHM) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Graham stock, see the GHM Stock Forecast page.

Graham Announces CEO Transition Effective June 10, 2025

Graham Corporation reported strong financial results for the fourth quarter and full fiscal year 2025, ending March 31, 2025, with a 21% increase in revenue to $59.3 million and a significant improvement in operating margin from 3.1% to 9.3%. The company also announced a planned management transition effective June 10, 2025, with CEO Daniel J. Thoren transitioning to Executive Chairman and Strategic Advisor, and Matt Malone stepping in as the new CEO.

The most recent analyst rating on (GHM) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Graham stock, see the GHM Stock Forecast page.

Graham Updates Executive Incentive and Bonus Plans

On June 2, 2025, Graham Corporation’s Compensation Committee renewed and amended its Annual Long-Term Incentive Award Plan for Senior Executives for fiscal year 2026. The plan includes grants of time-vesting and performance-vesting restricted stock units to named executive officers, with vesting conditions tied to continued employment and specific performance metrics. Additionally, the company amended its Annual Executive Cash Bonus Program, setting target bonus levels based on the attainment of company and personal objectives. The Compensation Committee also approved stock-based grants for non-employee directors.

The most recent analyst rating on (GHM) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Graham stock, see the GHM Stock Forecast page.