GHMGraham Corporation
Is the business good?
The checks split: margins widening, but 3 of 9 health tests passed and thin cash backing (0.5×).
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GHM?
Graham Corporation earns 6.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.2 points below what the capital costs: growth destroys value
- Operating margin
- 5.4%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q1 2027
- Cash conversion
- 0.46×
Cash conversion · 0.97× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +6.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| 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 Q1 2027
- 23%
- Operating margin12 months to Q1 2027
- 5.4%
- Net margin12 months to Q1 2027
- 4.5%
- Free cash flow margin
- −2.3%
- Revenue, trailing twelve months
- $261M
- Free cash flow, trailing twelve months
- −$6.1M
- Net income, trailing twelve months
- $12M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.