Gorman-Rupp Company (GRC) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: 1.49%
• Average Volume (3M): 129.52K
• Price to Earnings (P/E): 23.7
• 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): 0.55
• Shares Outstanding: 26,312,841
• 10 Day Avg. Volume: 137,167
• 30 Day Avg. Volume: 129,524
• PEG Ratio: 0.74
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 14.13
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 9.42
• Enterprise Value/Ebitda: 15.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.42
• Revenue Forecast (FY): $714.02M

• Rating: 69 Neutral
• Price Target: $63.00 ▲(22.93% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by improved financial performance and strong cash generation, tempered by cyclical volatility and incomplete latest-year leverage/return fields. Technicals show a strong uptrend but are overheated, and valuation is relatively expensive with only a modest dividend yield.

Positive Factors

Strong cash generation

Sustained operating cash flow recovery and free cash flow that equals net income indicate durable cash conversion. This strengthens the company's ability to fund capex, service debt, pay dividends, and invest in aftermarket/service capabilities, improving resilience across cycles.

Improving revenue and margins

Meaningful revenue growth alongside rising gross and net margins suggests better pricing, mix, or cost control that can persist. Higher margins provide structural cushion for earnings volatility and fund reinvestment into product development and aftermarket service offerings.

Diversified end markets and aftermarket

A broad product portfolio across municipal, industrial and commercial end markets plus recurring aftermarket parts and service revenue creates multiple demand channels. This diversification smooths revenues over time and builds a sticky installed-base service stream.

Negative Factors

Cyclical demand volatility

Historic swings in revenue and margins tied to municipal and industrial capex cycles mean earnings and cash flow can vary materially across years. That cyclicality reduces predictability of free cash flow and complicates capital allocation in downturns.

Elevated but improving leverage

While deleveraging trends are positive, the company historically carried sizable debt relative to equity. Elevated leverage increases interest and refinancing risk during downturns, limiting flexibility for M&A, capex, or extended investment cycles despite recent improvement.

Recent data gaps limit visibility

Missing or zeroed 2025 leverage and return metrics and unavailable 2025 EBIT margin reduce transparency into current operating leverage and capital structure. This complicates medium-term forecasting and risk assessment for investors and lenders over the next several months.

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

GRC primarily makes money by selling pump systems and related fluid-handling products. Its core revenue stream is product sales (e.g., pumps and packaged pumping systems) to end markets such as municipal water/wastewater and a variety of industrial and commercial applications. In addition to initial equipment sales, the company also generates revenue from aftermarket activity tied to its installed base, including replacement parts, maintenance/repair items, and service-related support associated with keeping pumps operating over their life cycles. Sales are fulfilled through a mix of channels that include distributors and representatives as well as direct customer relationships, with revenue influenced by demand in municipal infrastructure spending and industrial activity. Specific details on individual customer contracts, pricing terms, or named partnerships: null.

Gorman-Rupp Company Financial Statement Overview

Summary

Solid operating recovery with meaningful revenue expansion and improved margins in 2025, supported by strong recent operating and free cash flow. Offsetting this, results have been cyclical/volatile (notably 2022 weakness), and the latest-year balance-sheet ratios include missing/zeroed fields that reduce confidence in the most recent leverage/return profile.

Income Statement

Revenue expanded meaningfully over the past several years, with 2025 showing a step-up versus 2024 (after a flat 2024). Profitability also improved: gross margin rose to ~30.6% in 2025 from ~29.1% in 2024, and net margin improved to ~7.8% from ~6.1%, driving higher net income. A key watch-out is volatility in growth and profitability across the cycle (notably the sharp margin compression in 2022 and uneven growth rates year to year), and 2025 EBIT margin is not available in the data (listed as 0.0), limiting visibility on operating leverage that year.

Balance Sheet

Leverage appears moderate-to-elevated in recent years, with total debt still sizable relative to equity (2024 debt-to-equity ~1.04; 2023 ~1.22; 2022 ~1.33). The positive is balance-sheet improvement: total debt declined from 2022–2024 levels into 2025 while equity increased, suggesting deleveraging and retained earnings. However, returns on equity are missing/zeroed in 2025 (and debt-to-equity is also shown as 0.0 for 2025), which reduces confidence in the latest-year leverage and return profile as presented in the dataset.

Cash Flow

Cash generation is a clear strength: operating cash flow rebounded strongly after a weak 2022 and remains robust in 2024–2025. Free cash flow also improved materially—negative in 2022, then strong in 2023 and 2024, and especially strong in 2025 where free cash flow equals operating cash flow and matches net income (free cash flow to net income = 1.0). The main weakness is historical volatility, including the 2022 free-cash-flow shortfall and a decline in free cash flow in 2024 versus 2023, indicating sensitivity to working capital and/or investment timing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	682.39M	659.67M	659.51M	521.03M	378.32M
Gross Profit	196.78M	191.95M	196.25M	130.94M	95.90M
EBITDA	120.27M	110.22M	113.96M	54.27M	49.16M
Net Income	53.02M	40.12M	34.95M	11.20M	29.85M
Balance Sheet
Total Assets	860.05M	858.47M	890.36M	872.83M	420.75M
Cash, Cash Equivalents and Short-Term Investments	35.08M	24.21M	30.52M	6.78M	125.19M
Total Debt	327.53M	387.07M	425.28M	439.01M	1.52M
Total Liabilities	445.33M	484.67M	540.90M	541.64M	90.78M
Stockholders Equity	414.72M	373.80M	349.46M	331.19M	329.98M
Cash Flow
Free Cash Flow	88.85M	55.51M	77.39M	-4.30M	35.69M
Operating Cash Flow	106.23M	69.83M	98.22M	13.69M	45.44M
Investing Cash Flow	-15.34M	-11.87M	-20.16M	-545.67M	-9.17M
Financing Cash Flow	-80.86M	-63.14M	-54.53M	414.11M	-18.55M

Gorman-Rupp Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 51.25 is below the 20-day moving average (MA) of 62.96, below the 50-day MA of 58.78, and above the 200-day MA of 46.71, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 34.21 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
GHM	76 Outperform	$905.75M	62.02	11.90%	―	16.04%	75.37%
HLIO	70 Outperform	$2.15B	37.53	3.75%	0.64%	-1.46%	-10.03%
GRC	69 Neutral	$1.62B	23.68	13.26%	1.49%	3.19%	31.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$217.05M	2.69	13.25%	0.95%	14.24%	-96.24%
LXFR	60 Neutral	$314.62M	11.56	13.57%	3.70%	3.36%	57.40%