E Daily Stock Pick: Graham Corp

This week, I'm looking for the fifth industrials representative of eight for my Ivy portfolio.

That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a small-cap metal fabrication company named Graham Corp. Its trading ticker is GHM.

  • Graham Corporation manufactures and sells critical equipment for the energy, defense, and chemical/petrochemical industries mostly in the United States.
  • Its suite of products includes ejectors, surface condensers, and liquid vacuum pumps. For the defense industry, its equipment is used in nuclear propulsion power systems for the U.S. Navy.
  • For the chemical and petrochemical industries, its equipment is used in fertilizer, ethylene, methanol and downstream chemical facilities. The company derives its revenue from the sale of heat transfer equipment.

The company sells its products directly, as well as through independent sales representatives.

Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

I use three key data points to gauge the value of any dividend equity-like Graham Corp:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

GHM Price

Graham's price per share closed at $20.68 yesterday. A year ago its price was $25.84. Price fell $5.16 or about 20% in the past year.

Assuming Graham's stock trades in the range of $18.00 to $28.00 this year, Graham's recent $20.68 price could rise by $3.32 and go to $24.00 by early-June, 2020.

GHM Dividends

Graham's most recent quarterly dividend was $0.10 declared May 29th and payable June 26th.

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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts

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