Graham Corp (GHM) Stock Analysis
Verdict: HOLD
Surging defense backlog drives high growth, but rich valuation at 86.7x P/E and thin 5.2% margins leave no margin for error.
Investment score: 54/100
Analysis as of
Is Graham Corp stock worth reviewing? AI model thesis
Graham Corporation demonstrates robust operational momentum in naval defense and aerospace equipment, but current valuation multiples price in aggressive long-term margin expansion.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Graham Corp opportunities and risks
What speaks for GHM
- U.S. Navy defense backlog expansion
What speaks against GHM
- Valuation multiple compression risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| GHM | 86.7x | 4.1x | 45.8x | 23.3% | 4.5% | -0.6% |
| EPAC | 21.2x | 3.1x | 13.4x | 49.0% | 14.7% | 5.8% |
| PRLB | 62.1x | 3.3x | 23.1x | 45.4% | 5.4% | 3.3% |
| AIN | n/a | 1.4x | 54.4x | 21.1% | -4.2% | 3.5% |
| HLMN | 36.9x | 1.0x | 9.1x | 45.8% | 2.6% | 3.9% |
| TNC | 70.3x | 1.0x | 15.5x | 38.8% | 1.5% | -0.2% |
| Peer median | 36.9x | 1.4x | 15.5x | 45.4% | 2.6% | 3.5% |
Frequently asked questions about Graham Corp (GHM)
Is GHM stock a good investment?
The cached TradeMates AI model rates Graham Corp as HOLD with an investment score of 54/100. Graham Corporation demonstrates robust operational momentum in naval defense and aerospace equipment, but current valuation multiples price in aggressive long-term margin expansion. This is algorithmic model output, not personal investment advice.
Is GHM stock a buy?
The TradeMates model verdict for GHM is HOLD with an investment score of 54/100. Treat this as a model signal to review, not a personal buy recommendation.