Latest Ratios: P/E Ratio 81.7x · EV/EBITDA 48.6x · ROE 9.6%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.1B | $879M | $319M | $296M | $139M | $81M | $142M | $127M | $193M | $209M | $224M |
| Enterprise Value | $1.1B | $891M | $304M | $287M | $141M | $93M | $82M | $95M | $178M | $169M | $185M |
| P/E Ratio → | 81.69 | 70.46 | 25.96 | 64.95 | 380.23 | — | 59.33 | 67.89 | — | — | 44.23 |
| P/S Ratio | 4.36 | 3.58 | 1.52 | 1.59 | 0.89 | 0.66 | 1.45 | 1.41 | 2.13 | 2.28 | 2.44 |
| P/B Ratio | 7.26 | 6.26 | 2.67 | 2.80 | 1.44 | 0.84 | 1.45 | 1.32 | 1.95 | 2.02 | 1.96 |
| P/FCF | — | — | 59.51 | 15.66 | 13.71 | — | — | — | 33.37 | 32.38 | 18.55 |
| P/OCF | 67.13 | 55.17 | 13.12 | 10.52 | 10.02 | — | — | 102.86 | 24.36 | 24.57 | 18.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.63 | 1.45 | 1.55 | 0.90 | 0.76 | 0.85 | 1.05 | 1.96 | 1.84 | 2.01 |
| EV / EBITDA | 48.63 | 40.06 | 14.40 | 23.20 | 19.55 | — | 16.67 | 36.19 | 62.29 | 27.00 | 52.24 |
| EV / EBIT | 75.12 | 60.35 | 20.52 | 49.24 | 86.85 | — | 25.14 | 40.80 | 110.05 | — | 153.00 |
| EV / FCF | — | — | 56.76 | 15.17 | 13.92 | — | — | — | 30.79 | 26.13 | 15.30 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.5% | 23.5% | 25.2% | 21.9% | 16.2% | 7.4% | 21.0% | 20.0% | 20.0% | 23.9% | 18.5% |
| Operating Margin | 5.9% | 5.9% | 7.2% | 3.7% | 0.8% | -9.2% | 3.1% | 0.7% | 0.7% | 4.4% | 1.3% |
| Net Profit Margin | 5.1% | 5.1% | 5.8% | 2.5% | 0.2% | -7.1% | 2.4% | 2.1% | -0.3% | -10.7% | 5.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 10.9% | 4.5% | 0.4% | -9.0% | 2.4% | 1.9% | -0.3% | -9.1% | 4.5% |
| ROA | 4.3% | 4.3% | 4.9% | 2.1% | 0.2% | -5.3% | 1.6% | 1.2% | -0.2% | -6.7% | 3.4% |
| ROIC | 8.4% | 8.4% | 11.3% | 5.3% | 0.9% | -11.6% | 4.4% | 0.7% | 0.7% | 4.4% | 1.1% |
| ROCE | 9.7% | 9.7% | 12.5% | 5.9% | 1.0% | -10.1% | 3.0% | 0.7% | 0.6% | 3.6% | 1.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.06 | 0.07 | 0.21 | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt / EBITDA | 0.83 | 0.83 | 0.32 | 0.63 | 2.82 | — | 0.03 | 0.13 | 0.12 | 0.02 | 0.04 |
| Net Debt / Equity | — | 0.08 | -0.12 | -0.09 | 0.02 | 0.13 | -0.61 | -0.34 | -0.15 | -0.39 | -0.34 |
| Net Debt / EBITDA | 0.53 | 0.53 | -0.70 | -0.74 | 0.29 | — | -12.02 | -12.45 | -5.21 | -6.45 | -11.11 |
| Debt / FCF | — | — | -2.75 | -0.49 | 0.21 | — | — | — | -2.57 | -6.24 | -3.25 |
| Interest Coverage | — | — | 25.43 | 23.48 | 1.53 | -24.04 | 298.00 | 193.67 | 134.75 | -11.08 | 120.60 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.01 | 1.01 | 1.04 | 1.07 | 1.28 | 1.47 | 2.76 | 2.57 | 2.46 | 3.09 | 3.60 |
| Quick Ratio | 0.68 | 0.68 | 0.74 | 0.79 | 0.97 | 1.17 | 2.36 | 2.12 | 2.01 | 2.78 | 3.24 |
| Cash Ratio | 0.04 | 0.04 | 0.16 | 0.14 | 0.21 | 0.25 | 1.49 | 1.48 | 1.00 | 2.77 | 2.36 |
| Asset Turnover | — | 0.76 | 0.79 | 0.79 | 0.77 | 0.67 | 0.68 | 0.61 | 0.58 | 0.64 | 0.61 |
| Inventory Turnover | 3.69 | 3.69 | 3.92 | 4.34 | 5.01 | 6.53 | 4.44 | 3.25 | 2.83 | 5.21 | 6.02 |
| Days Sales Outstanding | — | 139.48 | 131.33 | 142.46 | 147.94 | 159.52 | 139.92 | 122.78 | 105.45 | 105.66 | 105.73 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | 4.3% | 3.1% | 3.3% | 2.0% | 1.7% | 1.6% |
| Payout Ratio | — | — | — | — | — | — | 185.0% | 227.0% | — | — | 69.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.2% | 1.4% | 3.9% | 1.5% | 0.3% | — | 1.7% | 1.5% | — | — | 2.3% |
| FCF Yield | — | — | 1.7% | 6.4% | 7.3% | — | — | — | 3.0% | 3.1% | 5.4% |
| Buyback Yield | 0.1% | 0.2% | 0.3% | 0.0% | 0.0% | 0.1% | 0.0% | 0.2% | 0.1% | 0.1% | 0.0% |
| Total Shareholder Yield | 0.1% | 0.2% | 0.3% | 0.0% | 0.0% | 4.4% | 3.1% | 3.5% | 2.1% | 1.7% | 1.6% |
| Shares Outstanding | — | $11M | $11M | $11M | $11M | $11M | $10M | $10M | $10M | $10M | $10M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GHM stock.
Graham Corporation's current P/E ratio is 81.7x. The historical average is 37.8x. This places it at the 95th percentile of its historical range.
Graham Corporation's current EV/EBITDA is 48.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.5x.
Graham Corporation's return on equity (ROE) is 9.6%. The historical average is 7.5%.
Based on historical data, Graham Corporation is trading at a P/E of 81.7x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Graham Corporation has 23.5% gross margin and 5.9% operating margin.
Graham Corporation's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Valuation disconnected from fundamentals
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Volatile Earnings
GHM trades at a significant premium with a P/E of 89.28 and EV/EBITDA of 53.10, far exceeding peer levels and implying the market is pricing in sustained earnings acceleration despite historical volatility.
The valuation multiples, particularly the forward EV/EBITDA of 21.51, are pricing in a dramatic improvement in earnings power that is not yet visible in the trailing results. This disconnect suggests investors are betting on successful integration of recent acquisitions and a favorable operating leverage inflection, which remains to be demonstrated in the financials. The 2.47 PEG ratio indicates the market is assigning a high growth premium to a company whose profitability has been inconsistent.
Margin Compression Defies Revenue Growth
Despite accelerating revenue, GHM's net margin has compressed from 8.3% in 2026Q1 to 5.5% in 2027Q1, indicating rising costs and an inability to translate top-line momentum into proportional bottom-line gains.
The deterioration in operating margin from a peak of 9.3% in 2025Q4 to 5.8% in the latest quarter, even as revenue surged 28.6% year-over-year, suggests significant input cost pressures or operational inefficiencies are offsetting scale benefits. The persistent 15%+ SG&A burden appears to be a structural constraint preventing margin expansion. For a cyclical industrial machinery company, this margin volatility raises questions about the sustainability of its earnings power through the cycle.
Low ROIC Signals Inefficient Capital Deployment
GHM's ROIC of 1.9% in 2027Q1 is minimal and has trended down from a 4.2% peak in 2025Q4, implying the company is generating very poor returns on the capital invested in its expanding asset base.
The sub-5% ROIC over the entire period indicates that the company's investments in inventory, receivables, and property, plant, and equipment are not generating commensurate operating profits. The recent decline in ROIC alongside rising assets from the 2026Q4 acquisition suggests the deal has immediately dilutive returns. For shareholders, this level of return on capital is likely below the company's cost of capital, destroying value over time.
Lengthening Cycles Signal Working Capital Strain
The cash conversion cycle has widened to 134 days in 2027Q1 from a recent low of 134 days, but days inventory outstanding and days payable outstanding trends show weakening supplier leverage and inventory control.
The CCC has been volatile but remains elevated, with a notable lengthening in days inventory outstanding to 85 days and a reduction in days payable outstanding to 43 days, suggesting the company is holding inventory longer while paying suppliers more quickly—a combination that consumes cash. The persistent high CCC is a key contributor to the negative free cash flow margin of -21.4% and highlights a potential structural inefficiency in its manufacturing and sales cycle.
P/E Multiple Ignores Cash Flow Reality
The most commonly misapplied ratio for GHM is the P/E multiple, which at 89.28 is fundamentally misleading as it ignores the company's current negative free cash flow and volatile cash conversion.
Focusing on the P/E ratio implies a level of earnings sustainability that does not exist given the company's erratic net income and poor cash flow generation. A more appropriate metric would be EV/FCF or an analysis of the price-to-cash flow from operations, which would reveal the strain between accounting profits and actual cash generation. The current valuation appears vulnerable to any correction in the revenue growth trajectory or further margin deterioration.