Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 2026
Graham Corp (GHM)
A forensic read on Graham Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
8.7
Distress distance
Clean
Earnings quality
4
Forensic signals
100.8
P / E (ttm)
8.9%
ROE
$1.3B
Market cap
16.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Graham Corp earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 8.7, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+39.8%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +39.8% relative to their own average in FY2026 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by inventory up +27% against +19% in cost of sales and PP&E up +19% against revenue +17%. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 3% of net operating assets, diverging from the balance-sheet accrual read.
+1.5%/yr
FY2023–FY2026
Share-count dilution.Diluted share count changed +5% over the last 3 years to FY2026 (+1.5%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~4%.
suspended
FY2022→FY2024
Dividend — suspended.The dividend has been SUSPENDED — $4M paid in FY2022, then $0 in FY2024. A suspension is a major signal the board is conserving cash; the prior payment history doesn't offset it.
7.9%
FY2026
Return on invested capital.Return on invested capital is 7.9% in the latest fiscal year and rising from 1% — around its ~9% cost of capital, so growth is roughly value-neutral.
Key fundamentals
Latest Revenue$245.3M
Revenue Growth YoY+16.9%
Revenue CAGR (3yr)+16.0%
Net Margin5.1%
Free Cash Flow-$121,000.00
Return on Equity8.9%
Debt / Equity0.09x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Graham Corp's actual 10-K/10-Q/8-K filings?