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I've been keeping an eye on Graham Corporation (NYSE:GHM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GHM has a lot to offer. Basically, it is a financially-healthy company with a an impressive track record of dividend payments and a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Graham here.
Excellent balance sheet with reasonable growth potential and pays a dividend
GHM's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that GHM manages its cash and cost levels well, which is an important determinant of the company’s health. GHM's has produced operating cash levels of 54.23x total debt over the past year, which implies that GHM's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
GHM rewards its shareholders with attractive dividend yield, exceeding the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.
For Graham, there are three relevant aspects you should further examine:
- Historical Performance: What has GHM's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is GHM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GHM is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GHM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.