NYSE:GRC

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 24.67% per year

Pays a reliable dividend of 1.82%

Risk Analysis

GRC passed 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

4.0%

GRC

1.5%

US Machinery

0.4%

US Market


1 Year Return

-7.9%

GRC

13.3%

US Machinery

17.8%

US Market

Return vs Industry: GRC underperformed the US Machinery industry which returned 13.3% over the past year.

Return vs Market: GRC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

GRCIndustryMarket
7 Day4.0%1.5%0.4%
30 Day14.2%10.4%6.1%
90 Day9.0%15.1%8.9%
1 Year-6.3%-7.9%16.3%13.3%20.5%17.8%
3 Year22.4%9.9%26.6%17.4%42.3%32.9%
5 Year36.6%18.8%105.6%82.4%84.2%63.4%

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?

33.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRC ($34.04) is trading above our estimate of fair value ($21.35)

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 (33.4x) compared to the US Machinery industry average (26.6x).

PE vs Market: GRC is poor value based on its PE Ratio (33.4x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: GRC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: GRC is overvalued based on its PB Ratio (2.8x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

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

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRC's forecast earnings growth (24.7% per year) is above the savings rate (2.2%).

Earnings vs Market: GRC's earnings (24.7% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: GRC's revenue (9.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GRC's revenue (9.1% 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 (12.6%).


Next Steps

Past Performance

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

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRC has high quality earnings.

Growing Profit Margin: GRC's current net profit margins (7.4%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: GRC's earnings have grown by 8% 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 (-27.7%) over the past year, making it difficult to compare to the Machinery industry average (-13.9%).


Return on Equity

High ROE: GRC's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Gorman-Rupp's financial position?


Financial Position Analysis

Short Term Liabilities: GRC's short term assets ($241.4M) exceed its short term liabilities ($46.0M).

Long Term Liabilities: GRC's short term assets ($241.4M) exceed its long term liabilities ($27.8M).


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 0.7%.

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


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: GRC's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: GRC's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (56.9%), 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?

3.3yrs

Average management tenure


CEO

Jeff Gorman (67 yo)

22.42yrs

Tenure

US$1,144,331

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 ($USD1.14M) is below average for companies of similar size in the US market ($USD2.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Gorman
President22.42yrsUS$1.14m6.66%
$ 59.2m
James Kerr
VP & CFO3.75yrsUS$628.74k0.040%
$ 352.6k
Scott King
VP & COO1.5yrsUS$688.43k0.029%
$ 255.0k
Brigette Burnell
VP, General Counsel5.42yrsUS$472.21k0.021%
$ 187.4k
Barbara Woodward
Vice President of Human Resources2.75yrsno data0.0073%
$ 64.8k
Angela Morehead
Treasurer & Assistant Secretary1.75yrsno data0.018%
$ 159.0k

3.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: GRC's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Gorman
President22.42yrsUS$1.14m6.66%
$ 59.2m
Donald Bullock
Independent Director0.50yrno data0.013%
$ 119.1k
James Gorman
Honorary Chairman1.5yrsUS$151.01k20.65%
$ 183.5m
Rick Taylor
Independent Director17.5yrsUS$102.23k0.10%
$ 914.1k
Christopher Lake
Independent Director20.75yrsUS$106.23k0.21%
$ 1.9m
M. Harlan
Lead Independent Director2.83yrsUS$111.23k0.069%
$ 614.8k
Vincent Petrella
Independent Director0.50yrno data0.016%
$ 143.0k
Sonja McClelland
Independent Director1.5yrsUS$85.34k0.012%
$ 107.9k
Kenneth Reynolds
Independent Director6.5yrsUS$102.23k0.079%
$ 697.8k

1.5yrs

Average Tenure

60yo

Average Age

Experienced Board: GRC's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: GRC insiders have only sold shares 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 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$888.512m
  • 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

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 Analysis2020/10/26 05:39
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.