GrahamGHM +3.86%73 Interest Coverage is 16.93 as of Mar. 2026, which is 83% below its 10-year median of 100.50. GuruFocus rates GHM with a GF Score™ of 73/100 and a GF Value™ of $40.75 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,329 Industrial Products companies, Graham ranks better than 81.02% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Graham's
Operating Income
for the
three
months ended in Mar. 2026 was $2.7 Mil. Graham's Interest Expense for the
three
months ended in Mar. 2026 was $-0.2 Mil.
Graham's interest coverage for the quarter that ended in Mar. 2026 was 16.93.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Graham's Interest Coverage or its related term are showing as below:
GHM'
s Interest Coverage Range Over the Past 10 Years
Min: 1.17 Med: 100.5 Max: 729.3
Current: 95.65
GHM's Interest Coverage is ranked better than 81.02% of 2329
companies
in the Industrial Products industry
Industry Median: 14.8
vs GHM: 95.65
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Graham Interest Coverage Related Terms
Graham Interest Coverage Historical Data
* Premium members only.
The historical data trend for Graham's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
GHM vs PSIX, SERV, TNC: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Graham's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Graham Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Graham's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Graham's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Graham (GHM) has a Interest Coverage of 16.93 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Graham and its competitors. This is 83% below median its historical median of 100.50. Over the past decade, Graham's Interest Coverage has ranged from 1.17 to 729.30. According to the industry distribution chart, Graham ranks #442 out of 2329 companies in the Industrial Products industry, placing it in the top 19%.
Is Graham's Interest Coverage too high?
Graham's current Interest Coverage of 16.93 is 83% below median its 10-year median of 100.50. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 729.30. The Industrial Products industry median Interest Coverage is 14.80. Graham's value of 16.93 is 14.4% above this industry median. Based on the distribution chart, Graham ranks #442 out of 2329 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Graham has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Graham's Interest Coverage compare to PSIX and SERV?
According to the Industrial Products industry distribution chart, Graham ranks #442 out of 2329 companies for Interest Coverage. This places Graham in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.80. Graham's value of 16.93 is 14.4% above this benchmark. Historically, Graham's own Interest Coverage has ranged from 1.17 to 729.30 over the past decade. While the company's 10-year median is 100.50 vs. the industry median of 14.80, Graham has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,329 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Graham's current Interest Coverage of 16.93 is 14.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Graham and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Graham's current Interest Coverage is 16.93, which is 83% below median its own 10-year median of 100.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Graham stock overvalued right now?
Based on GuruFocus' analysis, Graham (GHM) is currently considered Significantly Overvalued. The stock's GF Value™ is $40.75, compared to a current price of $119.77 — trading 193.9% above its estimated fair value. The current Interest Coverage is 16.93, which is 83% below median its 10-year median of 100.50 and 14.4% above the Industrial Products industry median of 14.80. Graham's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Graham (GHM), the current Interest Coverage is 16.93 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Graham (GHM) Overvalued in 2026?
Based on GuruFocus' analysis, Graham stock appears to be overvalued.
The current stock price of $119.77 is trading 193.9% above its estimated GF Value™ of $40.75.
GuruFocus considers Graham to be Significantly Overvalued.
Key valuation signals for GHM:
Interest Coverage: 16.93 (83% below median its 10-year median of 100.50)
GF Value™: $40.75 vs. price of $119.77 (193.9% above fair value)
Industry Position: 14.4% above the Industrial Products median (#442 of 2329)
No single metric tells the full story. See the GHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Graham Corp designs and manufactures mission-critical fluid, power, heat transfer, vacuum, and mixing technologies for the Defense, Energy & Process, and Space industries. In Defense, its equipment is used in nuclear and non-nuclear propulsion, power, fluid transfer, thermal management, and mixing systems. In Energy & Process industries, it supplies equipment for vacuum, heat transfer, mixing, and fluid transfer applications used in oil refining, chemical facilities, fertilizers, ethylene, methanol, energetics, food & beverage, medical, and alternative energy applications such as hydrogen and geothermal processes. In the Space industry, its equipment is used in propulsion, power, thermal management, mixing, and life support systems. It operates in the United States and other countries.
73GF Score
Get the complete analysis for GHM
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