Graham: An Impressive Transition And Growth Story

Summary

  • Graham has successfully transitioned to defense and space, doubling revenues and expanding margins, resulting in strong operational momentum and a tripled backlog.
  • Despite reasonable sales multiples, low margins drive Graham’s earnings multiples to premium levels, making the stock appear expensive on an earnings basis.
  • Recent contract wins and robust order intake support continued growth, but management’s guidance for 2026 suggests more conservative expectations ahead.
  • Given the dramatic share price rise and high earnings multiples, I remain cautious and prefer to watch further developments before considering an investment.
  • Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »

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Shares of Graham (NYSE:GHM) have been on fire in recent years following the successful transition of its business, resulting in solid growth and impressive margin gains.

This is to be applauded, and while sales multiples look relatively

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This article was written by

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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