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GRC

Gorman-Rupp NYSE:GRC Stock Report

Last Price

US$28.89

Market Cap

US$754.1m

7D

4.3%

1Y

-15.7%

Updated

27 Jun, 2022

Data

Company Financials +
GRC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance3/6
Financial Health6/6
Dividends5/6

GRC Stock Overview

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally.

Gorman-Rupp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gorman-Rupp
Historical stock prices
Current Share PriceUS$28.89
52 Week HighUS$47.12
52 Week LowUS$27.45
Beta0.63
1 Month Change-2.00%
3 Month Change-22.02%
1 Year Change-15.67%
3 Year Change-11.62%
5 Year Change13.03%
Change since IPO806.84%

Recent News & Updates

May 02
Estimating The Fair Value Of The Gorman-Rupp Company (NYSE:GRC)

Estimating The Fair Value Of The Gorman-Rupp Company (NYSE:GRC)

How far off is The Gorman-Rupp Company ( NYSE:GRC ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

GRCUS MachineryUS Market
7D4.3%1.8%6.3%
1Y-15.7%-19.8%-18.8%

Return vs Industry: GRC exceeded the US Machinery industry which returned -20.1% over the past year.

Return vs Market: GRC exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is GRC's price volatile compared to industry and market?
GRC volatility
GRC Average Weekly Movement4.0%
Machinery Industry Average Movement6.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: GRC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GRC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19331,150Scott Kinghttps://www.gormanrupp.com

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.

Gorman-Rupp Fundamentals Summary

How do Gorman-Rupp's earnings and revenue compare to its market cap?
GRC fundamental statistics
Market CapUS$754.13m
Earnings (TTM)US$29.97m
Revenue (TTM)US$391.46m

25.2x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRC income statement (TTM)
RevenueUS$391.46m
Cost of RevenueUS$293.10m
Gross ProfitUS$98.35m
Other ExpensesUS$68.39m
EarningsUS$29.97m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)1.15
Gross Margin25.12%
Net Profit Margin7.65%
Debt/Equity Ratio0.0%

How did GRC perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRC?

Other financial metrics that can be useful for relative valuation.

GRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA12.8x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does GRC's PE Ratio compare to its peers?

GRC PE Ratio vs Peers
The above table shows the PE ratio for GRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.5x
CMCO Columbus McKinnon
29.5x35.1%US$874.8m
FATH Fathom Digital Manufacturing
6x-41.1%US$566.9m
TNC Tennant
22x23.2%US$1.1b
SXI Standex International
16.6x20.1%US$1.0b
GRC Gorman-Rupp
25.2x27.0%US$754.1m

Price-To-Earnings vs Peers: GRC is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (18.5x).


Price to Earnings Ratio vs Industry

How does GRC's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: GRC is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the US Machinery industry average (21.7x)


Price to Earnings Ratio vs Fair Ratio

What is GRC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.2x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: GRC is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).


Share Price vs Fair Value

What is the Fair Price of GRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRC ($28.89) is trading below our estimate of fair value ($41.84)

Significantly Below Fair Value: GRC is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: GRC is good value based on its PEG Ratio (0.9x)


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Future Growth

How is Gorman-Rupp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRC's forecast earnings growth (27% per year) is above the savings rate (1.9%).

Earnings vs Market: GRC's earnings (27% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: GRC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GRC's revenue (22.2% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: GRC's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GRC's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Gorman-Rupp performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GRC has high quality earnings.

Growing Profit Margin: GRC's current net profit margins (7.7%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: GRC's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: GRC's earnings growth over the past year (10.4%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: GRC earnings growth over the past year (10.4%) underperformed the Machinery industry 24%.


Return on Equity

High ROE: GRC's Return on Equity (9%) is considered low.


Discover strong past performing companies

Financial Health

How is Gorman-Rupp's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GRC's short term assets ($288.7M) exceed its short term liabilities ($59.5M).

Long Term Liabilities: GRC's short term assets ($288.7M) exceed its long term liabilities ($38.6M).


Debt to Equity History and Analysis

Debt Level: GRC is debt free.

Reducing Debt: GRC had no debt 5 years ago.

Debt Coverage: GRC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GRC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Gorman-Rupp current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GRC's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: GRC's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (4.23%).


Stability and Growth of Payments

Stable Dividend: GRC's dividends per share have been stable in the past 10 years.

Growing Dividend: GRC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56.6%), GRC's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (69.4%), GRC's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Scott King (46 yo)

1.42yrs

Tenure

US$988,095

Compensation

Mr. Scott A. King serves as President of The Gorman-Rupp Company since January 1, 2021 and has been its Chief Executive Officer since January 1, 2022. He had been the Chief Operating Officer of The Gorman-...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD988.10K) is below average for companies of similar size in the US market ($USD4.02M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: GRC's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: GRC's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Gorman-Rupp Company's employee growth, exchange listings and data sources


Key Information

  • Name: The Gorman-Rupp Company
  • Ticker: GRC
  • Exchange: NYSE
  • Founded: 1933
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$754.135m
  • Shares outstanding: 26.10m
  • Website: https://www.gormanrupp.com

Number of Employees


Location

  • The Gorman-Rupp Company
  • 600 South Airport Road
  • Mansfield
  • Ohio
  • 44903
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.