Investment Alert: Graham Corporation ‘s Overvalued Stock Explained
Graham Corporation is a global leader in the design and manufacture of mission-critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries. They are known for their world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies.
Financial Performance and Ratios
In the second quarter of fiscal year 2025, Graham Corporation reported record revenue of $53.6 million, a 19% increase from the previous year. Their gross margin improved by 790 basis points to 23.9%, and net margin increased by 520 basis points to 6.1%. The company also achieved a strong book-to-bill ratio of 1.2x and a record backlog of $407 million.
Graham Corporation Stock Price Performance
As of the latest data, Graham Corporation’s stock price is $45.42, with a market cap of $494.62 million. The stock has experienced fluctuations, with a 52-week high of $48.86 and a low of $18.15.
Investment Insight
Our analysis reveals that the current stock price is significantly overvalued. The financial performance metrics indicate that the company is not a robust generator of cash flows or high returns for shareholders. Consequently, we strongly predict a substantial price correction in the near future.
Graham Corporation Stock Forecast**
| MIN/MAX | 2025 | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|---|
| MIN | 9.10 | 9.65 | 10.23 | 10.86 | 11.52 |
| MAX | 24.48 | 25.97 | 27.55 | 29.22 | 31.00 |
When to buy?
Sell. Sell Short.
Dividend Policy
There are no future dividends presently declared for GHM as of Jan 6th, 2025.The declaration and payment of dividends are at the discretion of the Company.
Conclusion
Our comprehensive analysis suggests that Graham Corporation’s stock is presently overvalued. Despite recent financial improvements, the company does not generate robust cash flows or high returns for shareholders. Consequently, a significant price correction is anticipated in the near future. Investors should consider this potential adjustment when making their investment decisions.
A cup of coffee from you for this excellent analysis.
Company’s Site.
More US Stocks.
*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.