Efficiency level measures a company's capability to transform available input into output and is often considered an important parameter for gauging its potential to make profits. A company with a high efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance. However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks. T ...

Financial Data and Key Metrics Changes - The company achieved record sales of $50 million for Q1 2025, representing a 5% increase or $2.4 million over the prior year, including $1.6 million from P3 Technologies [10] - Net income for the first quarter was $3 million, a 12% increase compared to $2.6 million for the same period in 2024, translating to $0.27 per share [12] - Adjusted net income increased by 20% to $3.6 million, equating to $0.33 per share [12] - Gross margin reached 24.8%, an expansion of 170 basis points over the prior year [11] - Adjusted EBITDA was $5.1 million for the first quarter, representing a 10.3% margin [13] Business Line Data and Key Metrics Changes - Sales to the defense market reached $29.1 million, marking a 28% increase and setting a new quarterly record [10] - Refining sales increased by 20% to $8.2 million [10] - Aftermarket sales were down compared to record levels of the prior year but remained robust overall [11] Market Data and Key Metrics Changes - U.S. sales accounted for 82% of total revenue this quarter, reflecting the size and scope of the domestic defense business [11] - The backlog has been consistently around $400 million for the past three quarters, with a 23% year-over-year increase [16] - Defense backlog increased by 29% or $74.5 million, while chemical and petrochemical backlog rose by 82% or $10.5 million [16] Company Strategy and Development Direction - The company is expanding its defense business, which has reduced economic sensitivity, with a total backlog nearing $400 million [5] - A new 29,000 square foot facility in Batavia, New York, is set to enhance capacity and production efficiencies, particularly for U.S. Navy commitments [6] - The company is involved in a net-zero carbon emissions project for an ethylene cracker site in North America, aiming to minimize carbon emissions [7] - The focus on developing full lifecycle product opportunities ensures the company remains a trusted partner throughout the operational lifespan of customers' facilities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic positioning for sustained growth and achieving long-term financial goals for fiscal 2027 [21] - The company anticipates revenue for fiscal 2025 to be between $200 million and $210 million, indicating top-line growth of 11% over fiscal 2024 [17] - The effective tax rate for the full year is expected to be between 20% to 22% [12] Other Important Information - The company generated strong cash flow of $8.7 million, maintaining a strong balance sheet with $21.6 million in cash and no debt [14] - Capital expenditures for the quarter were $3 million, with expectations for fiscal 2025 CapEx to be between $10 million to $15 million [14] Q&A Session Summary Question: Details on the air turbine pump program - The air turbine pump program was a competitive bid, with the company's extensive experience in similar programs positioning it favorably [22][23] Question: Update on aftermarket database project - The company has developed a comprehensive database of equipment installations and is working on automating updates to improve sales efforts [24][25] Question: Status of the facility expansion - The groundbreaking for the facility was delayed from July to August due to typical project timelines, but confidence in the overall schedule remains high [26] Question: Labor force increase efforts - The workforce increased by 23% during the quarter, with ongoing recruitment efforts supported by the BlueForge grant [27][28] Question: Capacity issues related to new contracts - Current programs fit well within long-term capacity plans, with necessary investments being made to support new contracts [30][31] Question: Pipeline of opportunities post-P3 acquisition - The P3 acquisition has opened up new opportunities, particularly in space programs, with a strong pipeline of projects being pursued [32][33] Question: Gross margin outlook - The company expects some lower-margin work in the pipeline but overall gross margin guidance remains stable [34]

Financial Performance - Net sales for the first quarter of fiscal 2025 were $49,951, an increase of $2,382 or 5% compared to $47,569 for the first quarter of fiscal 2024[47] - Gross profit for the first quarter of fiscal 2025 was $12,368, with a gross profit margin of 24.8%, reflecting a 170 basis point improvement over the prior year[47] - Net income for the first quarter of fiscal 2025 was $2,966, or $0.27 per diluted share, compared to $2,640, or $0.25 per diluted share for the same period last year[48] - Net sales for the first quarter of fiscal 2025 were $49,951 million, an increase of $2,382 million or 5% compared to $47,569 million in the first quarter of fiscal 2024, with $1,578 million of this increase attributed to the acquisition of P3[58] - Gross profit for the first quarter of fiscal 2025 was $12,368 million, with a gross profit margin of 24.8%, reflecting a 170 basis point improvement over the prior year[58] - Net income for the first quarter of fiscal 2025 was $2,966 million, compared to $2,640 million in the first quarter of fiscal 2024, with adjusted net income of $3,584 million versus $2,983 million in the prior year[60] - The effective tax rate for the first quarter of fiscal 2025 was 10.0%, down from 22.5% in the first quarter of fiscal 2024, primarily due to a discrete tax benefit[60] Sales and Orders - Sales to the defense industry increased by $6,277 or 28%, primarily due to better execution, improved pricing, and increased direct labor[47] - Orders booked in the first quarter of fiscal 2025 were $55,767, representing 112% of net sales for the quarter, with a backlog of $396,775 at June 30, 2024[48] - Total orders for the first quarter of fiscal 2025 were $55,767, representing 112% of net sales for the quarter, with a backlog increase of $5,907 to $396,775[74] - The company reported a 23% increase in backlog compared to the prior year, with defense orders constituting 83% of total backlog[75] - Orders from the U.S. represented 65% of total orders in the first quarter of fiscal 2025, down from 77% in the prior year[74] Cash and Capital Expenditures - Cash and cash equivalents increased to $21,611 at June 30, 2024, up from $16,939 at March 31, 2024, primarily due to cash provided by operating activities[48] - Capital expenditures for the first quarter of fiscal 2025 were $2,978 million, up from $1,499 million in the comparable period of fiscal 2024, primarily for machinery and equipment[67] - The company expects capital expenditures for fiscal 2025 to be approximately $10,000 million to $15,000 million, with half being discretionary and the other half related to defense expansion at the Batavia facility[67] - The company entered into a new five-year revolving credit facility with Wells Fargo, providing a $35,000 million line of credit, which can increase to $50,000 million upon satisfying specified covenants[68] Market Focus and Growth Opportunities - The defense market comprised 83% of the total backlog at June 30, 2024, indicating a strong focus on defense-related projects[56] - The company expects continued growth in alternative and clean energy opportunities, particularly in hydrogen production and geothermal power generation[54] - The company expects to recognize revenue on approximately 35% to 45% of the backlog within one year, and 25% to 30% in one to two years[75] - The company has made significant progress towards achieving fiscal 2027 goals of 8% to 10% average annualized organic revenue growth[77] Risks and Challenges - The company faces significant cost inflation in labor, raw materials, and supply chain costs due to global supply chain disruptions and geopolitical events[88] - Geopolitical events, such as the 2022 Russian invasion of Ukraine and the Israel-Hamas war, may lead to increased supply chain costs and heightened inflation[88] - The impact of geopolitical tensions on operations and liquidity could be material, but the extent cannot be determined at this time[88] Other Financial Information - The company did not pay any dividends during the three months ended June 30, 2024, and has no intention to pay dividends in the foreseeable future[70] - As of June 30, 2024, the company maintained a consolidated total leverage ratio of 0.6x, well below the maximum requirement of 3.50:1.00[69] - The company has no off-balance sheet arrangements other than letters of credit incurred in the ordinary course of business[71] - Foreign currency purchases accounted for approximately 7% of the cost of products sold in the first three months of fiscal 2025[87] - The company has not utilized forward foreign currency exchange contracts as of June 30, 2024, and March 31, 2024[87] - The company has limited exposure to foreign currency purchases, mitigating potential risks from unfavorable currency changes[87] - The company evaluates the use of interest rate derivatives to manage exposure to interest rate movements[89] - As of June 30, 2024, the company had no variable rate debt outstanding on its New Revolving Credit Facility[89] - The company may borrow funds under its New Revolving Credit Facility, which bears interest at a variable rate, to fund strategic growth objectives[89] Sales Distribution - Domestic sales as a percentage of net sales increased to 82% in the first quarter of fiscal 2025, compared to 80% in the first quarter of fiscal 2024[58] - International consolidated sales accounted for 18% of total sales in the first three months of fiscal 2025[86]

The question now becomes: Are penny stocks undervalued, or are speculators dominating trading volume? Without further ado, here are three undervalued penny stocks to consider. Graham Corporation (NYSE:GHM) operates in the engineering field, emphasizing the design and development of high-level solutions for participants in the defense, space, and energy industries. Zomedica (ZOM) Zomedica (NYSE:ZOM) is a veterinary health company operating in pet pharmaceuticals' design, development, and commercialization. A ...

Selling, general and administrative expenses, inclusive of amortization, increased in Q4 and FY24 + P3 acquisition-related costs - Lower bad expense; FY23 results included impact of a customer bankruptcy Cash Generation Enabled Debt Repayment and Strategic Investments March 31, 2024 Stockholders' equity 105.6 96.9 March 31, 2024 CapEx of $9.2M in 2024 Totals shown may not equal the sum due to rounding Record Full Year Orders(1) Driven By U.S. Navy Programs $28.0 $33.0 $20.8 $103.2 $22.8 $34.9 $15.6 $20.1 $2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ___________. Commission File Number 001-08462 GRAHAM CORPORATION (Exact name of Registrant as specified in its charter) | Delaware | 16-1194720 | | - ...

Exhibit 99.1 News Release Graham Corporation t 20 Florence Avenue t Batavia, NY 14020 IMMEDIATE RELEASE GRAHAM CORPORATION REPORTS EXPANDED MARGINS ON SALES GROWTH OF 18% TO A RECORD $185.5 MILLION FOR FISCAL 2024 BATAVIA, NY, June 7, 2024 – Graham Corporation (NYSE: GHM) ("GHM" or the "Company"), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, today reported financial results for it ...

Investment Highlights and Strategic Rationale $39.9 $43.0 $47.6 $45.1 $43.8 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 SALES + Commercial aftermarket sales up 59% $6.2 $7.2 $11.0 $7.2 $9.7 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 15.6% 16.0% 23.1% 22.2% 16.6% + Better execution and pricing on defense contracts + Higher margin commercial aftermarket sales ADJUSTED EBITDA AND MARGIN(1) Selling, general and administrative expenses were 19% of sales, up from 13% last year Net income reflects approximately $0.7 mill ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) EXCHANGE ACT OF 1934 For the transition period from _____________ to ___________ Commission File Number 001-08462 GRAHAM CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 20 Florence Avenue, Batavia, New York 14020 (Address of principal executive offices) (Zip Code) Del ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 GRAHAM CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 20 Florence Avenue, Batavia, New York 14020 (Address of principal executive offices) (Zip Code) FORM 10-Q (Mark One) EXCHANGE ACT OF 1934 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 ...