Gorman-Rupp Company (GRC) AI Stock Analysis

• Market Cap: $924.52M
• Dividend Yield: 2.19%
• Average Volume (3M): 80.08K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.95
• Revenue Growth: 0.02%
• EPS Growth: 14.58%
• Country: US
• Employees: 1,450
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Machinery
• EPS (TTM): 1.69
• Shares Outstanding: 26,227,540
• 10 Day Avg. Volume: 69,902
• 30 Day Avg. Volume: 80,079
• PEG Ratio: 0.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.40
• Price to Cash Flow (P/CF): 8.50
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $56.00
• Price Target Upside: 58.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Gorman-Rupp Company has a robust financial foundation, characterized by consistent revenue growth and a strong balance sheet with zero debt. However, the stock is experiencing weak technical momentum, trading below key moving averages, indicating potential short-term weakness. The valuation is moderate with a fair P/E ratio and an attractive dividend yield, providing a balanced investment proposition. The absence of recent earnings call data and corporate events results in a score driven primarily by the company's financial health and valuation.

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 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
659.67M	659.51M	521.03M	378.32M	348.97M
	Gross Profit
204.33M	196.25M	130.94M	95.90M	89.56M
	EBIT
91.44M	87.04M	40.18M	27.44M	23.06M
	EBITDA
112.01M	113.96M	54.27M	49.16M	43.94M
	Net Income Common Stockholders
40.12M	34.95M	11.20M	29.85M	25.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.21M	30.52M	6.78M	125.19M	108.20M
	Total Assets
858.47M	890.36M	872.83M	420.75M	394.46M
	Total Debt
18.50M	404.45M	436.83M	1.14M	1.67M
	Net Debt
-5.71M	373.94M	430.04M	-124.05M	-106.53M
	Total Liabilities
484.67M	540.90M	541.64M	90.78M	78.94M
	Stockholders Equity
373.80M	349.46M	331.19M	329.98M	315.51M
Cash Flow		Free Cash Flow
69.83M	77.39M	-4.30M	35.69M	43.16M
	Operating Cash Flow
69.83M	98.22M	13.69M	45.44M	51.16M
	Investing Cash Flow
-11.87M	-20.16M	-545.67M	-9.17M	-7.70M
	Financing Cash Flow
-63.14M	-54.53M	414.11M	-18.55M	-16.14M

Gorman-Rupp Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 35.25 is above the 20-day moving average (MA) of 33.87, below the 50-day MA of 36.18, and below the 200-day MA of 38.04, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 62.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRC.

Gorman-Rupp Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	78 Outperform	$5.92B	30.16	15.65%	―	13.94%	37.49%
FLS	70 Neutral	$5.48B	19.50	14.34%	2.02%	5.49%	51.02%
GNRC	66 Neutral	$6.60B	20.39	13.46%	―	6.79%	64.30%
SXI	65 Neutral	$1.59B	29.12	8.57%	0.93%	-2.46%	-60.60%
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%
GRC	62 Neutral	$924.52M	20.87	12.06%	2.19%	0.02%	14.58%
HI	51 Neutral	$1.48B	―	-14.61%	4.25%	5.88%	-324.10%