📊 GHM Key Takeaways
Is Graham Corp. (GHM) a Good Investment?
Graham Corp exhibits severe operational and financial stress despite reported revenue surge, with net income flat despite 95k% revenue growth indicating acquisition integration challenges or accounting concerns. Negative free cash flow, deteriorating liquidity ratios (current 1.00x, quick 0.68x), and anemic profitability margins (net 5.1%) alongside minimal cash reserves ($6.6M) signal working capital stress. Poor capital efficiency (ROE 8.9%, ROA 3.9%) and capex exceeding operating cash flow compound structural concerns despite fortunately low leverage.
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.
Graham Corp. Key Strengths (GHM)
- Minimal leverage with 0.09x debt-to-equity ratio and only $13.0M long-term debt
- Positive operating cash flow of $15.9M demonstrates some core business generation
- Large asset base ($323.6M) provides acquisition target optionality in distressed scenario
- 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
- Negative free cash flow (-$121K) despite modest capex indicates working capital deterioration or margin compression
- Critical liquidity stress with current ratio at 1.00x and quick ratio at 0.68x leaving minimal safety margin
- Revenue explosion (95k% YoY) paired with zero net income growth suggests failed acquisition integration, accounting irregularities, or unrealistic baseline comparison year
- Extremely low cash position ($6.6M) relative to $323.6M assets insufficient to fund operations given negative FCF
- Sub-1% net margin (5.1%) and 6.1% operating margin indicate severe pricing power or cost control issues in industrial equipment sector
- 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
- Free cash flow trend and working capital dynamics next quarter—negative FCF unsustainable
- Current and quick ratio reversal—liquidity ratios must improve above 1.2x and 0.9x respectively to reduce distress risk
- Net income growth reconciliation—must demonstrate profit leverage on revenue base or earnings quality concerns justified
- Cash balance—track cash depletion rate; at $6.6M, funding runway may be limited if FCF does not turn positive
- 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
Graham Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 100% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.42 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 Grade of C from Claude (C) and ChatGPT (B) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GHM's key strengths?
Claude: Minimal leverage with 0.09x debt-to-equity ratio and only $13.0M long-term debt. Positive operating cash flow of $15.9M demonstrates some core business generation. 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: Negative free cash flow (-$121K) despite modest capex indicates working capital deterioration or margin compression. Critical liquidity stress with current ratio at 1.00x and quick ratio at 0.68x leaving minimal safety margin. 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 $245.3M.
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 $1.12.
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 grade reflects both perspectives for balanced insights.
What is GHM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Graham Corp. has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is GHM stock overvalued or undervalued?
Valuation metrics for GHM: ROE of 8.9% (sector avg: 15%), net margin of 5.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is GHM's AI grade for 2026?
Our dual AI analysis gives Graham Corp. a combined C grade 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 $15.9M, with capital expenditures of $16.1M. FCF margin is 0.0%.
How does GHM compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 5.1% (avg: 10%), ROE 8.9% (avg: 15%), current ratio 1.00 (avg: 1.8).