GORMAN-RUPP CO (GRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRC - US3830821043 - Common Stock
47.75 USD
-0.99 (-2.03%)
47.75 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GRC. GRC was compared to 132 industry peers in the Machinery industry. While GRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GRC had positive earnings in the past year.
In the past year GRC had a positive cash flow from operations.
GRC had positive earnings in each of the past 5 years.
Each year in the past 5 years GRC had a positive operating cash flow.
1.2 Ratios
GRC's Return On Assets of 5.78% is fine compared to the rest of the industry. GRC outperforms 63.64% of its industry peers.
GRC's Return On Equity of 12.40% is fine compared to the rest of the industry. GRC outperforms 68.94% of its industry peers.
With a decent Return On Invested Capital value of 9.65%, GRC is doing good in the industry, outperforming 70.45% of the companies in the same industry.
GRC had an Average Return On Invested Capital over the past 3 years of 7.65%. This is below the industry average of 10.27%.
The last Return On Invested Capital (9.65%) for GRC is above the 3 year average (7.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 12.4% | ||
| ROIC | 9.65% |
ROA(3y)3.29%
ROA(5y)4.67%
ROE(3y)8.04%
ROE(5y)8.23%
ROIC(3y)7.65%
ROIC(5y)7.89%
1.3 Margins
GRC has a better Profit Margin (7.41%) than 64.39% of its industry peers.
GRC's Profit Margin has declined in the last couple of years.
GRC's Operating Margin of 13.50% is fine compared to the rest of the industry. GRC outperforms 67.42% of its industry peers.
In the last couple of years the Operating Margin of GRC has grown nicely.
With a Gross Margin value of 30.36%, GRC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.5% | ||
| PM (TTM) | 7.41% | ||
| GM | 30.36% |
OM growth 3Y10%
OM growth 5Y4.73%
PM growth 3Y-8.37%
PM growth 5Y-7.52%
GM growth 3Y6.91%
GM growth 5Y3.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GRC is destroying value.
Compared to 1 year ago, GRC has about the same amount of shares outstanding.
Compared to 5 years ago, GRC has more shares outstanding
The debt/assets ratio for GRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.58 indicates that GRC is not in any danger for bankruptcy at the moment.
GRC has a Altman-Z score of 3.58. This is in the better half of the industry: GRC outperforms 62.88% of its industry peers.
The Debt to FCF ratio of GRC is 3.84, which is a good value as it means it would take GRC, 3.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GRC (3.84) is better than 61.36% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that GRC is somewhat dependend on debt financing.
GRC's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. GRC is outperformed by 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.98
WACC9.86%
2.3 Liquidity
GRC has a Current Ratio of 2.08. This indicates that GRC is financially healthy and has no problem in meeting its short term obligations.
GRC has a Current ratio (2.08) which is comparable to the rest of the industry.
GRC has a Quick Ratio of 1.25. This is a normal value and indicates that GRC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, GRC perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.76% over the past year.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
Looking at the last year, GRC shows a small growth in Revenue. The Revenue has grown by 3.19% in the last year.
Measured over the past years, GRC shows a quite strong growth in Revenue. The Revenue has been growing by 10.62% on average per year.
EPS 1Y (TTM)19.76%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%6.12%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y20.36%
Revenue growth 5Y10.62%
Sales Q2Q%2.76%
3.2 Future
GRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.30% yearly.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y15.72%
EPS Next 2Y17.08%
EPS Next 3Y13.3%
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y3.95%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.88, which indicates a rather expensive current valuation of GRC.
GRC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GRC to the average of the S&P500 Index (26.51), we can say GRC is valued inline with the index average.
GRC is valuated rather expensively with a Price/Forward Earnings ratio of 19.91.
GRC's Price/Forward Earnings ratio is in line with the industry average.
GRC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRC is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
82.58% of the companies in the same industry are more expensive than GRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.97 | ||
| EV/EBITDA | 12.87 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GRC may justify a higher PE ratio.
A more expensive valuation may be justified as GRC's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)1.52
PEG (5Y)5.41
EPS Next 2Y17.08%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
GRC has a Yearly Dividend Yield of 1.53%.
GRC's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to the average S&P500 Dividend Yield of 2.00, GRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of GRC has a limited annual growth rate of 5.66%.
GRC has paid a dividend for at least 10 years, which is a reliable track record.
GRC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.66%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
GRC pays out 38.69% of its income as dividend. This is a sustainable payout ratio.
GRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.69%
EPS Next 2Y17.08%
EPS Next 3Y13.3%
47.75
-0.99 (-2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.56%
Inst Owner Change0.09%
Ins Owners21.2%
Ins Owner Change0%
Market Cap1.26B
Revenue(TTM)678.52M
Net Income(TTM)50.25M
Analysts84
Price Target60.18 (26.03%)
Short Float %1.47%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.73
Dividend Growth(5Y)5.66%
DP38.69%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.87%
Min EPS beat(2)-8.88%
Max EPS beat(2)5.14%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-8.88%
Max EPS beat(4)5.14%
EPS beat(8)4
Avg EPS beat(8)9.13%
EPS beat(12)6
Avg EPS beat(12)7.03%
EPS beat(16)7
Avg EPS beat(16)1.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-2%
Max Revenue beat(2)1.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2%
Max Revenue beat(4)1.53%
Revenue beat(8)2
Avg Revenue beat(8)-2.03%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)9.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 19.91 | ||
| P/S | 1.85 | ||
| P/FCF | 14.97 | ||
| P/OCF | 12.5 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.87 |
EPS(TTM)2
EY4.19%
EPS(NY)2.4
Fwd EY5.02%
FCF(TTM)3.19
FCFY6.68%
OCF(TTM)3.82
OCFY8%
SpS25.79
BVpS15.4
TBVpS-2.58
PEG (NY)1.52
PEG (5Y)5.41
Graham Number26.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 12.4% | ||
| ROCE | 12.14% | ||
| ROIC | 9.65% | ||
| ROICexc | 10.23% | ||
| ROICexgc | 30.5% | ||
| OM | 13.5% | ||
| PM (TTM) | 7.41% | ||
| GM | 30.36% | ||
| FCFM | 12.37% |
ROA(3y)3.29%
ROA(5y)4.67%
ROE(3y)8.04%
ROE(5y)8.23%
ROIC(3y)7.65%
ROIC(5y)7.89%
ROICexc(3y)7.89%
ROICexc(5y)9.6%
ROICexgc(3y)22.44%
ROICexgc(5y)19.11%
ROCE(3y)9.63%
ROCE(5y)9.93%
ROICexgc growth 3Y22.6%
ROICexgc growth 5Y11.82%
ROICexc growth 3Y-8.91%
ROICexc growth 5Y-6.42%
OM growth 3Y10%
OM growth 5Y4.73%
PM growth 3Y-8.37%
PM growth 5Y-7.52%
GM growth 3Y6.91%
GM growth 5Y3.73%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.84 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 59.63% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.2% | ||
| Profit Quality | 167.06% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.58 |
F-Score7
WACC9.86%
ROIC/WACC0.98
Cap/Depr(3y)69.82%
Cap/Depr(5y)70.87%
Cap/Sales(3y)2.93%
Cap/Sales(5y)2.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.76%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%6.12%
EPS Next Y15.72%
EPS Next 2Y17.08%
EPS Next 3Y13.3%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y20.36%
Revenue growth 5Y10.62%
Sales Q2Q%2.76%
Revenue Next Year3.88%
Revenue Next 2Y3.95%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
EBIT growth 1Y-0.6%
EBIT growth 3Y32.4%
EBIT growth 5Y15.86%
EBIT Next Year29.34%
EBIT Next 3Y10.54%
EBIT Next 5YN/A
FCF growth 1Y70.62%
FCF growth 3Y15.86%
FCF growth 5Y1.61%
OCF growth 1Y37.95%
OCF growth 3Y15.4%
OCF growth 5Y2.35%
GORMAN-RUPP CO / GRC FAQ
What is the fundamental rating for GRC stock?
ChartMill assigns a fundamental rating of 6 / 10 to GRC.
What is the valuation status for GRC stock?
ChartMill assigns a valuation rating of 4 / 10 to GORMAN-RUPP CO (GRC). This can be considered as Fairly Valued.
How profitable is GORMAN-RUPP CO (GRC) stock?
GORMAN-RUPP CO (GRC) has a profitability rating of 7 / 10.
What is the valuation of GORMAN-RUPP CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GORMAN-RUPP CO (GRC) is 23.88 and the Price/Book (PB) ratio is 3.1.
What is the earnings growth outlook for GORMAN-RUPP CO?
The Earnings per Share (EPS) of GORMAN-RUPP CO (GRC) is expected to grow by 15.72% in the next year.