Graham Corporation (GHM) exhibits 23.5% gross margins and 10.9% return on invested capital within Industrials (Industrial Machinery/Components), balanced against a 28.6x enterprise multiple and 4.8% implied options volatility.
Sustained 23.5% gross profitability converts into 6.1% operating margin and 10.9% ROIC, outpacing sector cost of capital.
ROIC: 10.9% // GM: 23.5%YoY revenue trajectory of +16.9% paired with -0.01% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +16.9% // FCF YLD: -0.01%Altman Z-Score of 4.67 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.67 // F-SCORE: 6/9Trading at 67.3x trailing P/E (56.5x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 67.3x // EV/EBITDA: 28.6xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $69.95 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 5.1% net margins.
NET MARGIN: 5.1% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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