Is Graham Stock a Good Investment?
Graham Investment Advice | GHM |
- Examine Graham's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Graham's leadership team and their track record. Good management can help Graham navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Industrial Machinery & Supplies & Components space and any emerging trends that could impact Graham's business and its evolving consumer preferences.
- Compare Graham's performance and market position to its competitors. Analyze how Graham is positioned in terms of product offerings, innovation, and market share.
- Check if Graham pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Graham's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Graham stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Graham is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Graham Stock
Researching Graham's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 78.0% of the company shares are owned by institutional investors. The book value of Graham was currently reported as 10.33. The company has Price/Earnings To Growth (PEG) ratio of 0.77. Graham last dividend was issued on the 8th of November 2021. The entity had 2:1 split on the 7th of October 2008.
To determine if Graham is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Graham's research are outlined below:
| Graham appears to be risky and price may revert if volatility continues | |
| Graham is unlikely to experience financial distress in the next 2 years | |
| Over 78.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Graham Holdings Company A Top Long-Term Stock According to Billionaire Mason Hawkins |
Graham Quarterly Cost Of Revenue |
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Graham uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Graham. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Graham's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 5th of February 2024 Upcoming Quarterly Report | View | |
| 13th of June 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of June 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Graham's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Graham's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2011-02-04 | 2010-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2010-01-29 | 2009-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2016-01-29 | 2015-12-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2012-06-01 | 2012-03-31 | 0.06 | 0.08 | 0.02 | 33 | ||
2010-05-21 | 2010-03-31 | 0.08 | 0.06 | -0.02 | 25 | ||
2019-01-30 | 2018-12-31 | -0.02 | 0.01 | 0.03 | 150 | ||
2016-07-29 | 2016-06-30 | 0.02 | 0.05 | 0.03 | 150 | ||
2010-07-29 | 2010-06-30 | 0.06 | 0.09 | 0.03 | 50 |
Graham Target Price Consensus
Graham target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Graham's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 3 | Strong Buy |
Most Graham analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Graham stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Graham, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationGraham Target Price Projection
Graham's current and average target prices are 44.75 and 52.17, respectively. The current price of Graham is the price at which Graham is currently trading. On the other hand, Graham's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Graham Target Price
Graham Analyst Ratings
Graham's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Graham stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Graham's financials, market performance, and future outlook by experienced professionals. Graham's historical ratings below, therefore, can serve as a valuable tool for investors.Know Graham's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Graham is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Graham backward and forwards among themselves. Graham's institutional investor refers to the entity that pools money to purchase Graham's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Cobblestone Capital Advisors Llc | 2024-09-30 | 187.8 K | G2 Investment Partners Management Llc | 2024-09-30 | 182.2 K | Diamond Hill Capital Management Inc | 2024-09-30 | 172.3 K | State Street Corp | 2024-09-30 | 158.6 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 157.9 K | Kennedy Capital Management Inc | 2024-09-30 | 122.5 K | Franklin Resources Inc | 2024-09-30 | 122.3 K | Hillsdale Investment Management Inc. | 2024-09-30 | 102.3 K | Teton Advisors Inc | 2024-09-30 | 98 K | Brandes Investment Partners & Co | 2024-09-30 | 1.1 M | Blackrock Inc | 2024-09-30 | 757.1 K |
Graham's market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 487.32 M.Market Cap |
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Graham's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.11 | |
| Return On Capital Employed | 0.22 | 0.23 | |
| Return On Assets | 0.10 | 0.11 | |
| Return On Equity | 0.26 | 0.27 |
Determining Graham's profitability involves analyzing its financial statements and using various financial metrics to determine if Graham is a good buy. For example, gross profit margin measures Graham's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Graham's profitability and make more informed investment decisions.
Graham's Earnings Breakdown by Geography
Evaluate Graham's management efficiency
Graham has Return on Asset of 0.0251 % which means that on every $100 spent on assets, it made $0.0251 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0727 %, implying that it generated $0.0727 on every 100 dollars invested. Graham's management efficiency ratios could be used to measure how well Graham manages its routine affairs as well as how well it operates its assets and liabilities. As of the 18th of January 2025, Return On Tangible Assets is likely to grow to 0.11. Also, Return On Capital Employed is likely to grow to 0.23. At this time, Graham's Return On Tangible Assets are very stable compared to the past year. As of the 18th of January 2025, Debt To Assets is likely to grow to 0.10, while Other Assets are likely to drop 1.09.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.50 | 1.43 | |
| Tangible Book Value Per Share | 1.50 | 1.43 | |
| Enterprise Value Over EBITDA | 2.97 | 5.18 | |
| Price Book Value Ratio | 1.25 | 1.46 | |
| Enterprise Value Multiple | 2.97 | 5.18 | |
| Price Fair Value | 1.25 | 1.46 | |
| Enterprise Value | 42.7 M | 55 M |
Examining the leadership quality of Graham offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.
Beta 0.551 |
Basic technical analysis of Graham Stock
As of the 18th of January 2025, Graham retains the market risk adjusted performance of 0.6363, and Risk Adjusted Performance of 0.1498. Graham technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Please check out Graham information ratio, and the relationship between the downside deviation and value at risk to decide if Graham is priced fairly, providing market reflects its last-minute price of 44.75 per share. Given that Graham has jensen alpha of 0.5898, we strongly advise you to confirm Graham's regular market performance to make sure the company can sustain itself at a future point.Graham's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Graham insiders, such as employees or executives, is commonly permitted as long as it does not rely on Graham's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Graham insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Graham's Outstanding Corporate Bonds
Graham issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Graham uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Graham bonds can be classified according to their maturity, which is the date when Graham has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| International Game Technology Corp BondUS460599AD57 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Graham's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Graham's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1498 | |||
| Market Risk Adjusted Performance | 0.6363 | |||
| Mean Deviation | 2.36 | |||
| Semi Deviation | 2.18 | |||
| Downside Deviation | 2.61 | |||
| Coefficient Of Variation | 588.41 | |||
| Standard Deviation | 3.64 | |||
| Variance | 13.27 | |||
| Information Ratio | 0.1618 | |||
| Jensen Alpha | 0.5898 | |||
| Total Risk Alpha | 0.5232 | |||
| Sortino Ratio | 0.2255 | |||
| Treynor Ratio | 0.6263 | |||
| Maximum Drawdown | 25.97 | |||
| Value At Risk | (4.10) | |||
| Potential Upside | 7.07 | |||
| Downside Variance | 6.83 | |||
| Semi Variance | 4.77 | |||
| Expected Short fall | (2.83) | |||
| Skewness | 1.69 | |||
| Kurtosis | 6.98 |
| Risk Adjusted Performance | 0.1498 | |||
| Market Risk Adjusted Performance | 0.6363 | |||
| Mean Deviation | 2.36 | |||
| Semi Deviation | 2.18 | |||
| Downside Deviation | 2.61 | |||
| Coefficient Of Variation | 588.41 | |||
| Standard Deviation | 3.64 | |||
| Variance | 13.27 | |||
| Information Ratio | 0.1618 | |||
| Jensen Alpha | 0.5898 | |||
| Total Risk Alpha | 0.5232 | |||
| Sortino Ratio | 0.2255 | |||
| Treynor Ratio | 0.6263 | |||
| Maximum Drawdown | 25.97 | |||
| Value At Risk | (4.10) | |||
| Potential Upside | 7.07 | |||
| Downside Variance | 6.83 | |||
| Semi Variance | 4.77 | |||
| Expected Short fall | (2.83) | |||
| Skewness | 1.69 | |||
| Kurtosis | 6.98 |
Consider Graham's intraday indicators
Graham intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Graham stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Graham Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 8th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 22nd of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 4th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Graham Stock media impact
Far too much social signal, news, headlines, and media speculation about Graham that are available to investors today. That information is available publicly through Graham media outlets and privately through word of mouth or via Graham internal channels. However, regardless of the origin, that massive amount of Graham data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Graham news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Graham relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Graham's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Graham alpha.
Graham Maximum Pain Price Across March 21st 2025 Option Contracts
Graham's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Graham close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Graham's options.
Graham Corporate Directors
| Gerard Mazurkiewicz | Independent Director | Profile | |
| Alan Fortier | Independent Director | Profile | |
| James Barber | Independent Director | Profile | |
| Lisa Schnorr | Independent Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Graham. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. To learn how to invest in Graham Stock, please use our How to Invest in Graham guide.You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Graham. If investors know Graham will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Graham listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 6.81 | Earnings Share 0.71 | Revenue Per Share | Quarterly Revenue Growth 0.188 | Return On Assets |
The market value of Graham is measured differently than its book value, which is the value of Graham that is recorded on the company's balance sheet. Investors also form their own opinion of Graham's value that differs from its market value or its book value, called intrinsic value, which is Graham's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Graham's market value can be influenced by many factors that don't directly affect Graham's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Graham's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Graham is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Graham's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.