Graham Corporation (GHM) vs Power Solutions International, Inc. (PSIX)

Graham Corporation and Power Solutions International, Inc. are both Specialty Industrial Machinery companies. Graham Corporation and Power Solutions International, Inc. are of similar size ($1.1B and $1.0B). Power Solutions International, Inc. trades at the lower P/E: 15.8× against 82.3×. Graham Corporation grew revenue faster over the last twelve months: 21.2% against 13.2%. Power Solutions International, Inc. has the higher net margin (10.0% vs 4.53%) and the higher return on invested capital (27.4% vs 5.37%). Across the 21 metrics below, Power Solutions International, Inc. leads on 15 and Graham Corporation on 6.

Valuation

Metric GHM PSIX Specialty Industrial Machinery median
P/E 82.28 15.81 29.62
P/S 3.87 1.59 2.77
P/B 5.26 5.30 3.04
Price to free cash flow n/m 16.03 23.81
EV/EBITDA 41.07 11.33 16.05
EV/Sales 3.78 1.59 2.94
Earnings yield 1.22% 6.32% 3.08%
Free cash flow yield (0.58%) 6.24% 3.12%

Profitability

Metric GHM PSIX Specialty Industrial Machinery median
Gross margin 23.29% 23.86% 35.90%
Operating margin 5.44% 13.00% 11.22%
Net margin 4.53% 10.03% 7.80%
Free cash flow margin (2.24%) 9.92% 9.51%
Return on equity 7.49% 40.07% 11.10%
Return on assets 3.83% 15.23% 4.63%
Return on invested capital 5.37% 27.40% 5.37%

Growth

Metric GHM PSIX Specialty Industrial Machinery median
Revenue growth (TTM) 21.22% 13.17% 6.45%
EPS growth (last fiscal year) 0.90% 64.12% —
Revenue growth, 5-year CAGR 20.27% 11.58% 8.31%
Net income growth, 5-year CAGR 39.41% 0.00% 5.04%

Health

Metric GHM PSIX Specialty Industrial Machinery median
Debt to equity 0.00 0.35 0.35
Current ratio 1.23 2.57 2.11
Net debt to EBITDA 0.27 0.44 1.32

Dividend

Metric GHM PSIX Specialty Industrial Machinery median
Dividend yield 4.94% — 1.12%
Payout ratio 0.00 — 0.17

Size

Metric GHM PSIX Specialty Industrial Machinery median
Market cap 1.03b 1.07b 1.97b

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