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Gorman-Rupp Company (GRC)
NYSE:GRC

Gorman-Rupp Company (GRC) AI Stock Analysis

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Gorman-Rupp Company

(NYSE:GRC)

70Outperform
Gorman-Rupp Company exhibits a strong financial position with consistent revenue growth and a zero-debt balance sheet, which are significant strengths. However, technical analysis indicates a bearish trend, which could deter short-term investors. The valuation suggests the stock is fairly priced, offering moderate income through dividends. Improving profitability metrics, especially in net margins and return on equity, could further enhance the company's stock attractiveness.

Gorman-Rupp Company (GRC) vs. S&P 500 (SPY)

Gorman-Rupp Company Business Overview & Revenue Model

Company DescriptionThe 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 MoneyGorman-Rupp Company generates revenue through the design, manufacturing, and sale of pumps and pump systems. Its primary revenue streams include the sale of products across multiple sectors such as municipal and industrial water and wastewater, construction, and agriculture. Additionally, the company earns income from providing aftermarket services and parts, which are crucial for maintenance and operation of its pumping equipment. Strategic partnerships and long-term contracts with industrial and municipal entities also contribute significantly to its earnings, allowing GRC to secure a steady flow of orders and maintain a resilient supply chain.

Gorman-Rupp Company Financial Statement Overview

Summary
Gorman-Rupp Company displays a strong financial position with consistent revenue growth and robust balance sheet metrics, especially due to its zero-debt status in the TTM period. While profitability metrics show room for improvement, particularly in net margins and return on equity, the company's cash flow situation remains solid, underscoring its capacity for reinvestment and dividend distribution. The overall financial health is good, with opportunities to enhance profitability further.
Income Statement
78
Positive
The company has shown consistent revenue growth over the years, with a notable increase from 2022 to 2023. Gross profit margin is strong at 30.5% in TTM, indicating efficient production processes. The EBIT margin has improved to 13.9% in TTM, suggesting effective cost management. However, the net profit margin is relatively modest at 6.1% in TTM, indicating room for improvement in managing non-operating expenses.
Balance Sheet
85
Very Positive
The balance sheet is robust with zero debt in the TTM period, significantly improving from previous years, which enhances financial stability. The equity ratio is high at 100% in TTM, indicating a strong equity base. The return on equity is moderate at 4.7% in TTM, suggesting a need for better utilization of equity.
Cash Flow
80
Positive
The company has demonstrated strong free cash flow generation with a positive trend in free cash flow growth. The operating cash flow to net income ratio of 1.51 in TTM indicates healthy cash generation relative to earnings. However, the free cash flow to net income ratio at 1.25 suggests potential improvements in cash conversion efficiency.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
659.67M659.51M521.03M378.32M348.97M
Gross Profit
204.33M196.25M130.94M95.90M89.56M
EBIT
91.44M87.04M40.18M27.44M23.06M
EBITDA
112.01M113.96M54.27M49.16M43.94M
Net Income Common Stockholders
40.12M34.95M11.20M29.85M25.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
24.21M30.52M6.78M125.19M108.20M
Total Assets
858.47M890.36M872.83M420.75M394.46M
Total Debt
18.50M404.45M436.83M1.14M1.67M
Net Debt
-5.71M373.94M430.04M-124.05M-106.53M
Total Liabilities
484.67M540.90M541.64M90.78M78.94M
Stockholders Equity
373.80M349.46M331.19M329.98M315.51M
Cash FlowFree Cash Flow
69.83M77.39M-4.30M35.69M43.16M
Operating Cash Flow
69.83M98.22M13.69M45.44M51.16M
Investing Cash Flow
-11.87M-20.16M-545.67M-9.17M-7.70M
Financing Cash Flow
-63.14M-54.53M414.11M-18.55M-16.14M

Gorman-Rupp Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price35.93
Price Trends
50DMA
37.57
Negative
100DMA
38.75
Negative
200DMA
38.25
Negative
Market Momentum
MACD
-0.63
Positive
RSI
43.34
Neutral
STOCH
21.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRC, the sentiment is Negative. The current price of 35.93 is below the 20-day moving average (MA) of 36.83, below the 50-day MA of 37.57, and below the 200-day MA of 38.25, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRC.

Gorman-Rupp Company Risk Analysis

Gorman-Rupp Company disclosed 19 risk factors in its most recent earnings report. Gorman-Rupp Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gorman-Rupp Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITITT
78
Outperform
$10.51B20.5119.60%0.99%10.59%27.04%
DODOV
77
Outperform
$24.08B9.0324.30%1.17%-2.99%159.26%
XYXYL
74
Outperform
$29.03B32.698.55%1.24%16.23%34.42%
PNPNR
73
Outperform
$14.43B23.3718.45%1.07%-0.53%0.13%
GRGRC
70
Outperform
$920.59M22.9411.09%2.08%0.02%14.58%
CRCR
67
Neutral
$8.81B30.3018.96%0.55%9.65%
62
Neutral
$8.07B13.603.76%3.13%3.60%-14.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRC
Gorman-Rupp Company
35.93
-1.73
-4.59%
DOV
Dover
176.47
3.99
2.31%
ITT
ITT
131.15
0.18
0.14%
PNR
Pentair
88.04
5.45
6.60%
XYL
Xylem
119.88
-7.55
-5.92%
CR
Crane Company
154.93
17.64
12.85%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.