Gorman-Rupp Company (GRC) AI Stock Analysis

• Market Cap: $1.71B
• Dividend Yield: 1.49%
• Average Volume (3M): 119.72K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.05
• 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: 130,610
• 30 Day Avg. Volume: 119,723
• 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: 1.17
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 9.86
• Enterprise Value/Ebitda: 16.62
• 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: $72.00 ▲(40.49% 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

Cash generation strength

Operating cash flow and free cash flow rebounded strongly and were especially robust in 2025, with FCF matching net income. This durable cash convertibility supports reinvestment, dividends, and debt reduction, increasing long-term financial flexibility and funding organic growth.

Diversified revenue streams & aftermarket

Gorman-Rupp serves municipal, industrial, construction and agricultural markets via direct, distributor and OEM channels plus aftermarket parts and service. This diversified go-to-market mix and recurring aftermarket revenue provide resilience across cycles and durable customer relationships.

Recent margin and revenue recovery

Meaningful revenue expansion with improving gross and net margins in 2025 indicates restored pricing power and operational leverage. Sustained margin improvement enhances cash generation and earnings quality, supporting long-term competitiveness if maintained across the cycle.

Negative Factors

Cyclical volatility in results

Sales and profitability show notable cycle sensitivity—sharp weakness in 2022 and uneven year-to-year growth. For capital-intensive industrial suppliers, this cyclicality complicates capacity planning, margin sustainability and forecasting, raising medium-term execution risk.

Historically elevated leverage

Total debt has historically been sizable relative to equity, which can constrain financial flexibility and increase interest burden in downturns. Although deleveraging trends emerged, elevated leverage historically limits room for large strategic investments or cushioning during cyclical troughs.

Incomplete latest-year leverage/return data

Key 2025 leverage and return metrics are missing or zeroed in the dataset, reducing confidence in assessing current balance-sheet strength. This data gap increases uncertainty about recent capital structure and profitability trends, complicating durable risk assessment.

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

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	307.53M	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: Negative
• RSI: Negative
• 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 60.44, below the 50-day MA of 54.13, and above the 200-day MA of 44.55, indicating a bullish trend. The MACD of 3.91 indicates Negative momentum. The RSI at 73.75 is Negative, neither overbought nor oversold. The STOCH value of 60.99 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	$890.36M	59.36	12.15%	―	16.04%	75.37%
GRC	69 Neutral	$1.71B	32.24	13.45%	1.49%	3.19%	31.51%
LXFR	68 Neutral	$413.38M	29.25	7.14%	3.70%	3.36%	57.40%
HLIO	67 Neutral	$2.45B	72.91	3.75%	0.64%	-1.46%	-10.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$248.20M	11.37	0.22%	0.95%	14.24%	-96.24%