Graham Corp has 31.73
M in debt with debt to equity (D/E) ratio of 0.31, which is OK given its current industry classification.
The company retains a Market Volatility (i.e., Beta) of 1.211, which attests to a somewhat significant risk relative to the market. Let's try to break down what Graham's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Graham Corp will likely underperform. Even though it is essential to pay attention to
Graham Corp current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy in determining any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Graham Corp exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Graham Corp has an expected return of -0.0369%. Please be advised to check out Graham Corp
value at risk,
daily balance of power, and the
relationship between the
total risk alpha and
expected short fall to decide if
Graham Corp performance from the past will be repeated at some point in the near future.
Graham financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Graham, including all of Graham's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Graham assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Graham debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Graham Total Liabilities
Graham liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Graham has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Graham balance sheet include debt obligations and money owed to different Graham vendors, workers, and loan providers. Below is the chart of Graham short long-term liabilities accounts currently reported on its balance sheet.
You can use Graham
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Graham's Liquidity
Graham
financial leverage refers to using borrowed capital as a funding source to finance Graham ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Graham financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Graham's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Graham's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Graham's total debt and its cash.
What is the case for Graham Investors
The entity reported the last year's revenue of 100.94
M. Total Income to common stockholders was 1.07
M with profit before taxes, overhead, and interest of 20.47
M.
Asset Breakdown
| Total Assets | 157.1 Million |
| Current Assets | 124.45 Million |
| Assets Non Current | 27.2 Million |
| Goodwill | 5.83 Million |
| Tax Assets | 447,987 |
Is Graham showing trail of lower volatility?
The skewness is down to 0.12 as of today. Graham Corp exhibits very low volatility with skewness of 0.12 and kurtosis of 0.66. However, we advise investors to further study Graham Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Graham Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Graham Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Graham Corp Investment
When is the right time to buy or sell Graham Corp? Buying stocks such as Graham Corp isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
On the whole, as of the 27th of October 2021, our research shows that Graham Corp is a rather not too volatile investment opportunity with a
low probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be
undervalued. Our primary 90 days buy-sell recommendation on the company is
Strong Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Graham. Please refer to our
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