Gorman-Rupp Company (GRC) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 1.49%
• Average Volume (3M): 94.57K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.09
• Revenue Growth: 3.19%
• EPS Growth: 31.51%
• Country: US
• Employees: 1,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.52
• Shares Outstanding: 26,312,841
• 10 Day Avg. Volume: 118,617
• 30 Day Avg. Volume: 94,566
• PEG Ratio: 1.75
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 17.91
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 7.40
• Enterprise Value/Ebitda: 12.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.06
• Revenue Forecast (FY): $682.90M

• Rating: 76 Outperform
• Price Target: $52.00 ▲(11.76% Upside)

Gorman-Rupp Company exhibits strong financial performance with robust revenue and cash flow growth, alongside improved profitability and a solid balance sheet. The technical analysis supports a positive trend, with the stock trading above key moving averages. Valuation metrics indicate moderate pricing, with a reasonable P/E ratio and a modest dividend yield. These factors collectively contribute to a favorable overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for GRC's products, supporting market expansion and long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, supporting long-term growth.

Dividend Stability

Consistent dividend increases reflect financial health and management's commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Margin Fluctuations

Fluctuating margins suggest potential challenges in cost management, which could impact profitability and competitive positioning over time.

Historical Leverage Concerns

Historical leverage issues indicate potential risk in financial management, which could affect future financial stability and borrowing capacity.

Cash Flow Volatility

Volatility in cash flow generation can impact the company's ability to fund operations and growth consistently, posing a risk to financial stability.

Gorman-Rupp Company Business Overview & Revenue Model

Company Description

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company's products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, military, and other liquid-handling applications, as well as in heating, ventilating, and air conditioning applications. The company markets its products through a network of distributors, manufacturers' representatives, third-party distributor catalogs, direct sales, and commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.

How the Company Makes Money

Gorman-Rupp generates revenue primarily through the sale of its pumps and pumping systems, which are sold to a diverse array of sectors including municipal water supply, wastewater treatment, and industrial processes. The company has multiple key revenue streams, including direct sales, distributors, and original equipment manufacturers (OEM) partnerships. Additionally, GRC earns income from aftermarket services and spare parts, which provide ongoing support to customers. The company also engages in strategic partnerships and collaborations that enhance its market reach and product offerings, contributing significantly to its overall earnings. Gorman-Rupp's focus on innovation and quality has helped it maintain a strong competitive position in the pump manufacturing industry, driving consistent revenue growth.

Gorman-Rupp Company Financial Statement Overview

Summary

Gorman-Rupp Company demonstrates strong financial performance with significant revenue and cash flow growth, improved profitability, and a strengthened balance sheet. The company has effectively reduced leverage, enhancing financial stability. While historical fluctuations in margins and cash flow growth present some risks, the overall trajectory is positive, positioning the company well for future growth in the industrial machinery sector.

Income Statement

Gorman-Rupp Company shows strong revenue growth with a TTM increase of 68.9%, indicating robust demand and market expansion. The gross profit margin is healthy at 29.9%, and the net profit margin has improved to 7.4% in the TTM, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 13.2% and 17.3% respectively, showcasing efficient operational management. However, slight fluctuations in gross profit margin over the years suggest potential cost management challenges.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.37 in the TTM from over 1.0 in previous years, indicating reduced leverage and a stronger equity position. Return on equity is reasonable at 9.9%, suggesting effective use of equity to generate profits. The equity ratio stands at 100%, indicating a well-capitalized balance sheet. However, past high leverage ratios highlight potential risk management concerns.

Cash Flow

The free cash flow growth rate is impressive at 33.7% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is robust at 0.87, indicating efficient cash conversion. The free cash flow to net income ratio is also strong at 0.96, reflecting good cash flow management. However, historical fluctuations in free cash flow growth suggest potential volatility in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	678.52M	659.67M	659.51M	521.03M	378.32M	348.97M
Gross Profit	202.91M	191.95M	196.25M	130.94M	95.90M	89.56M
EBITDA	117.49M	110.22M	113.96M	54.27M	49.16M	43.94M
Net Income	50.25M	40.12M	34.95M	11.20M	29.85M	25.19M
Balance Sheet
Total Assets	869.90M	858.47M	890.36M	872.83M	420.75M	394.46M
Cash, Cash Equivalents and Short-Term Investments	42.94M	24.21M	30.52M	6.78M	125.19M	108.20M
Total Debt	322.30M	387.07M	425.28M	439.01M	1.14M	1.67M
Total Liabilities	464.74M	484.67M	540.90M	541.64M	90.78M	78.94M
Stockholders Equity	405.16M	373.80M	349.46M	331.19M	329.98M	315.51M
Cash Flow
Free Cash Flow	96.48M	55.51M	77.39M	-4.30M	35.69M	43.16M
Operating Cash Flow	100.49M	69.83M	98.22M	13.69M	45.44M	51.16M
Investing Cash Flow	-16.28M	-11.87M	-20.16M	-545.67M	-9.17M	-7.70M
Financing Cash Flow	-80.33M	-63.14M	-54.53M	414.11M	-18.55M	-16.14M

Gorman-Rupp Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRC, the sentiment is Positive. The current price of 46.53 is below the 20-day moving average (MA) of 47.84, above the 50-day MA of 46.33, and above the 200-day MA of 40.57, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRC.

Gorman-Rupp Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRC	76 Outperform	$1.31B	26.04	13.01%	1.49%	3.19%	31.51%
LXFR	73 Outperform	$374.10M	26.47	7.14%	3.70%	3.36%	57.40%
GHM	69 Neutral	$775.86M	57.27	11.39%	―	16.04%	75.37%
HI	68 Neutral	$2.23B	52.05	3.07%	2.85%	-16.00%	―
HLIO	67 Neutral	$1.84B	54.66	3.75%	0.64%	-1.46%	-10.03%
TWIN	66 Neutral	$246.32M	704.53	0.22%	0.95%	14.24%	-96.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%