GHM (Graham) ROCE %: 6.96% (As of Mar. 2026)

What is Graham ROCE %?

Graham GHM +5.06% 62 ROCE % is 6.96% as of Mar. 2026. GuruFocus rates GHM with a GF Score™ of 62/100 and a GF Value™ of $40.73 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Graham's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.96%.

Graham (NYSE:GHM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Graham ROCE % Related Terms

Graham ROCE % Historical Data

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The historical data trend for Graham's ROCE % 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.

Graham ROCE % Chart

Graham Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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-9.62

1.03

5.93

12.47

10.17

Graham Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															17.57	15.32	12.83	9.14	6.96

62GF Score

Graham Corp GHM

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Graham ROCE % Calculation

Graham's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	15.017	/	( ( (264.11 - 136.15)	+	(323.616 - 156.27) )	/ 2 )
	=	15.017	/	( (127.96	+	167.346)	/ 2 )
	=	15.017	/	147.653
	=	10.17 %

Graham's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	10.632	/	( ( (292.927 - 154.669)	+	(323.616 - 156.27) )	/ 2 )
	=	10.632	/	( ( 138.258	+	167.346 )	/ 2 )
	=	10.632	/	152.802
	=	6.96 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 6.96% mean?

Graham (GHM) has a ROCE % of 6.96% as of Mar. 2026.

Is Graham's ROCE % too high?

Graham's current ROCE % is 6.96%. The Industrial Products industry median ROCE % is 7.10. Graham's value of 6.96% is 2% below this industry median. Overall, Graham has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Graham's ROCE % compare to PSIX and SERV?

Graham's ROCE % of 6.96% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.10. Graham's value of 6.96% is 2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Industrial Products company?

The median ROCE % among Industrial Products companies is 7.10, based on 3,032 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Graham's current ROCE % of 6.96% is 2% below 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Graham's current ROCE % is 6.96%. 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 $40.73, compared to a current price of $115.32 — trading 183.1% above its estimated fair value. The current ROCE % is 6.96% and 2% below the Industrial Products industry median of 7.10. Graham's overall GF Score™ is 62/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Graham (GHM), the current ROCE % is 6.96% 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 $115.32 is trading 183.1% above its estimated GF Value™ of $40.73. GuruFocus considers Graham to be Significantly Overvalued.

Key valuation signals for GHM:

ROCE %: 6.96%
GF Value™: $40.73 vs. price of $115.32 (183.1% above fair value)
GF Score™: 62/100 with 6 warning signs
Industry Position: 2% below the Industrial Products median

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 Business Description

Industry Industrials Industrial Products

Comparable Companies PSIX SERV TNC KRNT NNE RR EPAC PKOH LXFR SHMD GEV XTER:SIE XPAR:SU XTER:ENR ETN PH OSTO:ATCO A CMI EMR TSE:7011

Other Exchanges 781:Germany

Address 20 Florence Avenue, Batavia, NY, USA, 14020

Website https://www.grahamcorp.com

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.

62GF Score

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$115.32

Price

$40.73

GF Value

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