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Stock impact report

Graham Machinery: Not A Bad Time To Cash In After A Sturdy Run (Rating Downgrade) [Seeking Alpha]

Graham Corporation (GHM) 
NASDAQ:AMEX Investor Relations: graham-mfg.com/investor-relations-contacts
Company Research Source: Seeking Alpha
Q2-26 results showed strong revenue growth and record backlog of $500M, yet margins declined mainly due to mix issues, and free cash flow remains negative. The lack of an upgrade in guidance is not ideal for a stock that is priced at a 70% premium on an EBITDA multiple basis and offers negative FCF yield. The stock is still showcasing conditions of strong momentum, but the risk-reward on the long-term charts does not look favorable now. Given lofty valuations, lack of guidance upgrade, and seasonal weakness in the December quarter, we are downgrading GHM from buy to hold. bernardbodo/iStock via Getty Images Background Graham Corporation ( GHM ) is a small-cap industrial machinery stock (market-cap of close to $700M) that is noted for its expertise in producing critical equipment and technologies for the Defense, Energy, and Space Industries. We have This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of Show less Read more
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