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GRC

Gorman-RuppNYSE:GRC Stock Report

Last Price

US$41.18

Market Cap

US$1.1b

7D

-2.6%

1Y

23.4%

Updated

18 Jan, 2022

Data

Company Financials +
GRC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends4/6

GRC Stock Overview

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems worldwide.

Gorman-Rupp Competitors

Pentair

NYSE:PNR

US$10.9b

Colfax

NYSE:CFX

US$6.9b

Watts Water Technologies

NYSE:WTS

US$6.3b

Flowserve

NYSE:FLS

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Gorman-Rupp
Historical stock prices
Current Share PriceUS$41.18
52 Week HighUS$47.12
52 Week LowUS$30.35
Beta0.52
1 Month Change-4.90%
3 Month Change4.25%
1 Year Change23.40%
3 Year Change23.15%
5 Year Change30.15%
Change since IPO1,192.62%

Recent News & Updates

Jan 16

The Gorman-Rupp Company: Fair Value For A Pump-Centric Enterprise

The Gorman-Rupp Company is a niche industrial products firm focused on the manufacture and sale of pumps. The business has achieved mixed financial results in recent years, but performance for 2021 is looking up. Even so, shares are likely in fair value territory and that means there are better prospects out there for investors to consider.

Dec 18
Investors Met With Slowing Returns on Capital At Gorman-Rupp (NYSE:GRC)

Investors Met With Slowing Returns on Capital At Gorman-Rupp (NYSE:GRC)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Shareholder Returns

GRCUS MachineryUS Market
7D-2.6%1.0%-0.3%
1Y23.4%11.9%13.7%

Return vs Industry: GRC exceeded the US Machinery industry which returned 11.9% over the past year.

Return vs Market: GRC exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is GRC's price volatile compared to industry and market?
GRC volatility
GRC Average Weekly Movement3.7%
Machinery Industry Average Movement4.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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 worldwide. 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$1.08b
Earnings (TTM)US$30.12m
Revenue (TTM)US$366.65m

35.7x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRC income statement (TTM)
RevenueUS$366.65m
Cost of RevenueUS$271.82m
Gross ProfitUS$94.84m
ExpensesUS$64.72m
EarningsUS$30.12m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.15
Gross Margin25.87%
Net Profit Margin8.21%
Debt/Equity Ratio0.0%

How did GRC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

54%

Payout Ratio

Valuation

Is Gorman-Rupp undervalued compared to its fair value and its price relative to the market?

35.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRC ($41.18) is trading above our estimate of fair value ($35.95)

Significantly Below Fair Value: GRC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRC is poor value based on its PE Ratio (35.7x) compared to the US Machinery industry average (29.3x).

PE vs Market: GRC is poor value based on its PE Ratio (35.7x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: GRC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: GRC is overvalued based on its PB Ratio (3.3x) compared to the US Machinery industry average (2.8x).


Future Growth

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

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRC's forecast earnings growth (21.2% per year) is above the savings rate (2%).

Earnings vs Market: GRC's earnings (21.2% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: GRC's revenue (8.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: GRC's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRC's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

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

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRC has high quality earnings.

Growing Profit Margin: GRC's current net profit margins (8.2%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: GRC's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: GRC's earnings growth over the past year (12.7%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: GRC earnings growth over the past year (12.7%) underperformed the Machinery industry 34.4%.


Return on Equity

High ROE: GRC's Return on Equity (9.1%) is considered low.


Financial Health

How is Gorman-Rupp's financial position?


Financial Position Analysis

Short Term Liabilities: GRC's short term assets ($278.5M) exceed its short term liabilities ($54.8M).

Long Term Liabilities: GRC's short term assets ($278.5M) exceed its long term liabilities ($37.6M).


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


Dividend

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

1.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRC's dividend (1.65%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: GRC's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.8%), GRC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Scott King (46 yo)

2.75yrs

Tenure

US$709,992

Compensation

Mr. Scott A. King has been the Chief Operating Officer of The Gorman-Rupp Company since April 25, 2019 and serves as its President since January 1, 2021 and has been its Chief Executive Officer since Janua...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD709.99K) is below average for companies of similar size in the US market ($USD2.31M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GRC's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: GRC's board of directors are considered experienced (5.3 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$1.076b
  • Shares outstanding: 26.13m
  • 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 Analysis2022/01/18 23:51
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.