Graham Corporation (GHM) Stock

Graham Corporation (GHM) is a Industrials stock trading at $99.94 (as of 2026-08-20), with a market capitalization of $1.17B and a trailing P/E of 81.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Graham Corporation designs and manufactures equipment used for fluid handling, power generation, heat transfer, and vacuum applications, including systems such as ejectors and condensers, thermal management components, and rocket propulsion elements. It also provides related servicing and spare parts for customers in industries including chemical and petrochemical processing, defense, space, refining, cryogenics, and energy.

Understand Graham Corporation: how it makes money

Graham Corporation designs and manufactures specialized fluid, power, heat transfer, and vacuum equipment, with products used in chemical and petrochemical processing, defense and space, petroleum refining, cryogenic and energy applications, and it makes money by selling these engineered equipment systems to customers in those end markets.

The company’s profit model is tied to converting engineering demand for its specialized equipment into revenue, with that demand indicated by its Book to Bill Ratio.

Business quality (Weak): Clear end-market focus (including defense and space) and an observable demand signal (book to bill), but operating profitability appears modest based on the reported operating margin.

Valuation: At 99× earnings, GHM trades 192% above the Machinery average (34×). Note: one-time items can distort reported P/E.

Bull case

Demand visibility from order flow: The Book to Bill Ratio is reported at 1.3, indicating incoming orders exceed billed amounts in the period.
Defense and space are meaningful revenue sources: Defense Market Revenue is 0.03B and Space Revenue is 0.01B, supporting a mix that includes government and aerospace-related programs.
Some growth contribution from organic activity: Organic Revenue is reported at 0.02B, suggesting growth is not solely driven by transactions.

Bear case

Limited operating cushion: The company reports an operating margin of 5.5%, which leaves less room to absorb cost pressure.
Geographic concentration risk: United States revenue share is reported at 82.0%, and international revenue share at 17.0%, implying a heavy reliance on the US market.
Aftermarket exposure may be smaller in this snapshot: Aftermarket Orders to Energy and Process and Defense Markets is reported as 0.0B in the available candidates, which could indicate less aftermarket contribution in the period (or that it is not captured in the provided data).

Valuation — source: SEC EDGAR (first-party)
Price	$99.94
Market Cap	$1.17B
P/E Ratio	81.2
EV / EBITDA	47.0
Price / Book	6.10
Price / Sales	4.70
FCF Yield	-1.1%
DCF Value (model)	$11.53
DCF Upside vs Price	-88.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$245.29M
Net Margin	5.1%
Revenue Growth (YoY)	28.6%
EPS Growth (YoY)	-19.0%
FCF Growth (YoY)	64.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	5.20 (safe)
Piotroski F-Score	3/9 (weak)

Valuation vs Sector & Industry
Stock P/E	81.2
Sector P/E (Industrials)	25.9
Industry P/E (Machinery)	32.3
vs Sector	213.7%
vs Industry	151.5%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BRANDES INVESTMENT PARTNERS, LP ($92.41M)
Institutional Holders Tracked	10

Company
Sector	Industrials
Industry	Machinery
CEO	Daniel J. Thoren
Employees	595
Country	US
IPO Date	1980-03-17

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Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.