NYSE:GRC

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 7% per year

Pays a reliable dividend of 1.57%

Risk Analysis

No risks detected for GRC from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Gorman-Rupp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

GRC

1.3%

US Machinery

0.7%

US Market


1 Year Return

8.7%

GRC

21.9%

US Machinery

18.2%

US Market

Return vs Industry: GRC underperformed the US Machinery industry which returned 21.9% over the past year.

Return vs Market: GRC underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

GRCIndustryMarket
7 Day0.4%1.3%0.7%
30 Day0.9%-1.0%1.5%
90 Day16.3%7.4%5.0%
1 Year10.5%8.7%24.2%21.9%20.8%18.2%
3 Year26.6%13.9%40.7%31.7%45.2%35.8%
5 Year42.7%24.4%70.8%50.5%71.6%52.7%

Price Volatility Vs. Market

How volatile is Gorman-Rupp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

26.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRC ($36.87) is trading above our estimate of fair value ($23.9)

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 (26.1x) compared to the Machinery industry average (22.4x).

PE vs Market: GRC is poor value based on its PE Ratio (26.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: GRC is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: GRC is overvalued based on its PB Ratio (3.1x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRC's forecast earnings growth (7% per year) is above the savings rate (1.7%).

Earnings vs Market: GRC's earnings (7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: GRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: GRC's revenue (3.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: GRC's revenue (3.3% 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 (14.2%).


Next Steps

Past Performance

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

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRC has high quality earnings.

Growing Profit Margin: GRC's current net profit margins (9.1%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: GRC's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: GRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GRC had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Machinery industry average (13.5%).


Return on Equity

High ROE: GRC's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gorman-Rupp's financial position?


Financial Position Analysis

Short Term Liabilities: GRC's short term assets ($228.2M) exceed its short term liabilities ($51.2M).

Long Term Liabilities: GRC's short term assets ($228.2M) exceed its long term liabilities ($25.9M).


Debt to Equity History and Analysis

Debt Level: GRC is debt free.

Reducing Debt: GRC has no debt compared to 5 years ago when its debt to equity ratio was 6%.

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

Inventory Level: GRC has a high level of physical assets or inventory.

Debt Coverage by Assets: GRC's debt is covered by short term assets (assets are 1.0279286005488E+18x debt).


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GRC's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: GRC's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 reasonably low payout ratio (38.2%), GRC's dividend payments are well 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

What is the CEO of Gorman-Rupp's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Jeff Gorman (66yo)

21.6yrs

Tenure

US$1,093,794

Compensation

Mr. Jeffrey S. Gorman, also known as Jeff has been the Chief Executive Officer and President of Gorman-Rupp Co. since May 1, 1998 and served as its Senior Vice President since 1996. Mr. Gorman serves as th ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.09M) is below average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

2.4yrs

Average Tenure

57yo

Average Age

Experienced Management: GRC's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: GRC's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: GRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$72,91501 Nov 19
Christopher Lake
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$36.48
BuyUS$45,32323 May 19
Angela Morehead
EntityIndividual
Role
Treasurer
Treasurer & Assistant Secretary
Shares1,486
Max PriceUS$30.50
SellUS$82,55003 May 19
Christopher Lake
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$33.08
SellUS$66,14007 Mar 19
Christopher Lake
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$33.07

Ownership Breakdown

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


Management Team

  • Jeff Gorman (66yo)

    President

    • Tenure: 21.6yrs
    • Compensation: US$1.09m
  • Jim Kerr (57yo)

    VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$621.59k
  • Brigette Burnell (43yo)

    VP, General Counsel

    • Tenure: 4.6yrs
    • Compensation: US$475.44k
  • Scott King

    VP & COO

    • Tenure: 0.7yrs
  • Barbara Woodman

    Vice President of Human Resources

    • Tenure: 1.9yrs
  • Angie Morehead

    Treasurer & Assistant Secretary

    • Tenure: 0.9yrs

Board Members

  • Tom Hoaglin (70yo)

    Independent Director

    • Tenure: 26.9yrs
    • Compensation: US$112.83k
  • James Gorman (94yo)

    Honorary Chairman

    • Tenure: 0.7yrs
    • Compensation: US$143.03k
  • Jeff Gorman (66yo)

    President

    • Tenure: 21.6yrs
    • Compensation: US$1.09m
  • Rick Taylor (71yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$104.83k
  • Christopher Lake (54yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$108.83k
  • M. Harlan (59yo)

    Lead Director

    • Tenure: 2yrs
    • Compensation: US$113.83k
  • Sonja McClelland (47yo)

    Independent Director

    • Tenure: 0.7yrs
  • Kenneth Reynolds (60yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$104.83k

Company Information

The Gorman-Rupp Company's company bio, 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
  • Market Cap: US$963.538m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRCNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1971

Biography

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 a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:36
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.