Forensic Analysis · Machinery & Fabricated Metal Products · as of Nov 9, 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.
B · Sound & dependable
Forensic grade
Grey Zone
Financial health
2.2
Distress distance
Clean
Earnings quality
2
Forensic signals
9.6%
ROE
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 (auditor quality, say on pay, board independence, going concern). 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 B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.2, placing it in the Grey zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+17.3%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +17.3% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $27.6M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by inventory up +27% against +19% in cost of sales and PP&E up +19% against revenue +17%. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 3% of net operating assets, against an accruals ratio of 17.3%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
9.5%
FY2026
Return on invested capital.Return on invested capital is 9.5% in the latest fiscal year, against 5.7% in FY2024, having run between 5.7% and 11.8% across FY2024–FY2026 with no direction held. After-tax operating profit was $6M in FY2024 and $13M in FY2026, with operating income at 3.7% of revenue in FY2024, 7.2% in FY2025 and 6.1% in FY2026. The capital base behind it cannot be compared across FY2024–FY2026: short-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
Key fundamentals
Latest Revenue$245.3M
Revenue Growth YoY+16.9%
Revenue CAGR (2yr)+15.0%
Net Margin5.1%
Free Cash Flow-$121,000
Return on Equity9.6%
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?