Graham Corporation Common Stock (GHM)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at a sensible price. Graham Corporation is a small industrial with specialized fluid, power, heat-transfer and vacuum equipment sold into chemical, petrochemical, refining, defense, space and energy markets. The niche engineering and defense exposure may create switching costs, but with 732 employees and a $910.6M market cap, I would not call this a wide-moat franchise. Growth has been visible: fiscal 2026 revenue was $245.3M, up from $209.9M in fiscal 2025 and $185.5M in fiscal 2024. In fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $71.3M and net income was $3.9M, or diluted EPS $0.33. Yet in fiscal Q1 2026, the quarter ended 2025-06-30, net income was $4.6M on revenue of $55.5M, so higher sales did not produce higher profit. The provided data show trailing free cash flow of -$6.1M and an FCF yield of -0.7%. The balance sheet is a strength: debt-to-equity is 0.04 and the Altman Z-Score is 3.96. Returns are modest: ROE 7.49% and ROCE 3.21%. Valuation is demanding. At $77.58 on 2026-10-13, the FairStock P/E is 75.32, P/B is 4.73, and EV/EBITDA is 38.30. The FairStock Graham Number is $19.49, leaving a negative margin of safety. FairStock scores it 45/100, with a Piotroski F-Score of 5/9. The computed Lynch category is FAST GROWER, but the current profit and cash trends matter more to me. I need a margin of safety; here the price already assumes a lot.

In plain English: Graham Corporation makes specialized equipment for fluid, power, heat transfer, and vacuum systems used in chemicals, oil refining, defense, space, and energy. The business is growing sales, but profit has been uneven and cash flow is negative. At $77.58, the stock looks expensive compared with the company's current profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer