Is the business good?
How good a business is GHM?
Graham Corporation earns 8.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.1%
Return on invested capital · cost of capital 9.0% · 0.92 points below what the capital costs: growth destroys value
- Operating margin
- 6.1%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q4 2026
- Cash conversion
- −0.01×
Cash conversion · 0.44× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 24%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 3.1% |
| FY2022 | −9.2% |
| FY2023 | 0.80% |
| FY2024 | 3.7% |
| FY2025 | 7.2% |
| FY2026 | 6.1% |
Details›
- Gross margin12 months to Q4 2026
- 24%
- Operating margin12 months to Q4 2026
- 6.1%
- Net margin12 months to Q4 2026
- 5.1%
- Free cash flow margin
- −0.05%
- Revenue, trailing twelve months
- $245M
- Free cash flow, trailing twelve months
- −$121K
- Net income, trailing twelve months
- $13M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #41 of 44 by Smart Score