📊 GHM Key Takeaways
Is Graham Corp. (GHM) a Good Investment?
Graham Corp demonstrates exceptional revenue growth (35,903% YoY) with positive profitability, but the dramatic increase raises concerns about data quality or unusual one-time events. Modest profitability margins (5.9% net margin), weak liquidity (1.06x current ratio), and low free cash flow conversion (1.5% FCF margin) suggest operational challenges despite top-line growth.
Graham Corp shows solid fundamental improvement with meaningful revenue expansion, positive operating income, and a debt-free balance sheet. However, the quality of that growth is mixed because free cash flow is thin, liquidity is tight, and margins remain modest for an industrial business, which limits the strength of the overall fundamental case.
Why Buy Graham Corp. Stock? GHM Key Strengths
- Zero long-term debt and strong balance sheet with no leverage risk
- Positive operating cash flow of $16.1M and profitable operations with 10.5M net income
- Significant revenue expansion to $178.2M providing scale and market presence
- Debt-free capital structure with $22.25M cash and no long-term debt
- Positive profitability across gross, operating, and net levels with 8.0% ROE
- Operating cash flow remains positive at $16.08M, supporting internal funding capacity
GHM Stock Risks: Graham Corp. Investment Risks
- Anomalous 35,903% revenue growth suggests data anomaly, acquisition event, or one-time revenue recognition requiring clarification
- Weak liquidity position with current ratio of 1.06x and quick ratio of 0.75x limiting financial flexibility
- Poor free cash flow conversion at 1.5% FCF margin and capital intensity (CapEx $13.5M) limiting reinvestment capacity
- Free cash flow is weak at $2.60M and only 1.5% of revenue, suggesting limited cash conversion
- Current ratio of 1.06x and quick ratio of 0.75x indicate tight near-term liquidity
- Reported revenue surge appears unusually large, raising questions about sustainability and comparability of growth
Key Metrics to Watch
- Revenue sustainability and organic growth rate in subsequent periods
- Free cash flow generation and working capital management
- Operating margin stability and cost structure efficiency
- Free cash flow conversion from net income and operating cash flow
- Operating margin and working capital liquidity trends
Graham Corp. (GHM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility.
GHM Profit Margin, ROE & Profitability Analysis
GHM vs Industrial Sector: How Graham Corp. Compares
How Graham Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Graham Corp. Stock Overvalued? GHM Valuation Analysis 2026
Based on fundamental analysis, Graham Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Graham Corp. Balance Sheet: GHM Debt, Cash & Liquidity
GHM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Graham Corp.'s revenue has grown significantly by 115% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.
GHM Revenue Growth, EPS Growth & YoY Performance
GHM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $43.8M | $165.0K | $0.02 |
| Q2 2025 | $53.6M | $3.1M | $0.28 |
| Q1 2025 | $50.0M | $3.0M | $0.27 |
| Q3 2024 | $39.9M | $165.0K | $0.02 |
| Q2 2024 | $38.1M | -$196.0K | $-0.02 |
| Q1 2024 | $47.6M | $2.6M | $0.25 |
| Q1 2023 | $20.2M | $676.0K | $0.06 |
| Q3 2022 | $27.2M | $368.0K | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Graham Corp. Dividends, Buybacks & Capital Allocation
GHM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Graham Corp. (CIK: 0000716314)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GHM
What is the AI rating for GHM?
Graham Corp. (GHM) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GHM's key strengths?
Claude: Zero long-term debt and strong balance sheet with no leverage risk. Positive operating cash flow of $16.1M and profitable operations with 10.5M net income. ChatGPT: Debt-free capital structure with $22.25M cash and no long-term debt. Positive profitability across gross, operating, and net levels with 8.0% ROE.
What are the risks of investing in GHM?
Claude: Anomalous 35,903% revenue growth suggests data anomaly, acquisition event, or one-time revenue recognition requiring clarification. Weak liquidity position with current ratio of 1.06x and quick ratio of 0.75x limiting financial flexibility. ChatGPT: Free cash flow is weak at $2.60M and only 1.5% of revenue, suggesting limited cash conversion. Current ratio of 1.06x and quick ratio of 0.75x indicate tight near-term liquidity.
What is GHM's revenue and growth?
Graham Corp. reported revenue of $178.2M.
Does GHM pay dividends?
Graham Corp. does not currently pay dividends.
Where can I find GHM SEC filings?
Official SEC filings for Graham Corp. (CIK: 0000716314) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GHM's EPS?
Graham Corp. has a diluted EPS of $0.95.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GHM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Graham Corp. has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GHM stock overvalued or undervalued?
Valuation metrics for GHM: ROE of 8.0% (sector avg: 15%), net margin of 5.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GHM stock in 2026?
Our dual AI analysis gives Graham Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GHM's free cash flow?
Graham Corp.'s operating cash flow is $16.1M, with capital expenditures of $13.5M. FCF margin is 1.5%.
How does GHM compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 5.9% (avg: 10%), ROE 8.0% (avg: 15%), current ratio 1.06 (avg: 1.8).