Is GHM a high-quality business?

AlphaMadera's AlphaQuality grade scores Graham Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how GHM compares to a Buffett-style quality bar.

What is Graham Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to GHM based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes GHM a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

GHM - Graham Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $80.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C+ 61.3 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

D+ 44.0

5yr Avg ROIC 2.0% 20/100
Operating Margin Trend +2.13 pp/yr 100/100

Capital Efficiency

Weight: 15%

F 20.8

5yr Avg ROE 1.8% 19/100
5yr Share-Count CAGR 2.7% 24/100

Growth Quality

Weight: 25%

A+ 100.0

5yr Revenue CAGR 21.1% 100/100
5yr EPS CAGR 46.6% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

C- 49.3

5yr FCF Margin 2.3% 37/100
5yr FCF/NI Conversion 7.66x 65/100

Balance Sheet

Weight: 10%

A+ 99.3

Net Debt / EBITDA -0.70x 98/100
Interest Coverage (EBIT/Int) 26.05x 100/100
Altman Z-Score 5.45 100/100

Stability

Weight: 5%

C- 47.3

EPS Volatility (σ/μ) 0.72 13/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

Not enough curated-guru data to call a flow.

Laffont new

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.