GORMAN-RUPP CO (GRC)
US3830821043 - Common Stock
GRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the profitability and the financial health of GRC get a neutral evaluation. Nothing too spectacular is happening here. GRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GRC was profitable.
GRC had a positive operating cash flow in the past year.
Each year in the past 5 years GRC has been profitable.
In the past 5 years GRC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.93%, GRC perfoms like the industry average, outperforming 54.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.01%, GRC is in line with its industry, outperforming 59.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.83%, GRC is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GRC is below the industry average of 10.74%.
The last Return On Invested Capital (8.83%) for GRC is above the 3 year average (7.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 10.01% | ||
| ROIC | 8.83% |
ROA(3y)4.1%
ROA(5y)5.61%
ROE(3y)7.48%
ROE(5y)8.41%
ROIC(3y)7.4%
ROIC(5y)8.13%
1.3 Margins
With a Profit Margin value of 5.30%, GRC perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
GRC's Profit Margin has declined in the last couple of years.
GRC's Operating Margin of 13.20% is fine compared to the rest of the industry. GRC outperforms 68.99% of its industry peers.
In the last couple of years the Operating Margin of GRC has remained more or less at the same level.
GRC's Gross Margin of 29.75% is in line compared to the rest of the industry. GRC outperforms 53.49% of its industry peers.
In the last couple of years the Gross Margin of GRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.2% | ||
| PM (TTM) | 5.3% | ||
| GM | 29.75% |
OM growth 3Y8.76%
OM growth 5Y1.05%
PM growth 3Y-9.8%
PM growth 5Y-11.31%
GM growth 3Y5.04%
GM growth 5Y2.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRC is destroying value.
GRC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GRC has been increased compared to 5 years ago.
Compared to 1 year ago, GRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.73 indicates that GRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GRC's Altman-Z score of 2.73 is in line compared to the rest of the industry. GRC outperforms 44.96% of its industry peers.
GRC has a debt to FCF ratio of 5.23. This is a neutral value as GRC would need 5.23 years to pay back of all of its debts.
The Debt to FCF ratio of GRC (5.23) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that GRC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.09, GRC is not doing good in the industry: 85.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.91
WACC9.74%
2.3 Liquidity
GRC has a Current Ratio of 2.35. This indicates that GRC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.35, GRC is doing good in the industry, outperforming 61.24% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that GRC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, GRC perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.65% over the past year.
The Earnings Per Share has been decreasing by -4.87% on average over the past years.
GRC shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.57%.
Measured over the past years, GRC shows a quite strong growth in Revenue. The Revenue has been growing by 9.74% on average per year.
EPS 1Y (TTM)45.65%
EPS 3Y6.8%
EPS 5Y-4.87%
EPS growth Q2Q209.09%
Revenue 1Y (TTM)26.57%
Revenue growth 3Y23.63%
Revenue growth 5Y9.74%
Revenue growth Q2Q9.98%
3.2 Future
Based on estimates for the next years, GRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.20% on average per year.
Based on estimates for the next years, GRC will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y21.73%
EPS Next 2Y19.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.1%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.91, GRC is valued on the expensive side.
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 (24.92), we can say GRC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.46, the valuation of GRC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GRC is valued a bit cheaper than 61.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, GRC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
72.09% of the companies in the same industry are more expensive than GRC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GRC is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | 10.37 |
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.
GRC's earnings are expected to grow with 19.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y19.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, GRC has a reasonable but not impressive dividend return.
GRC's Dividend Yield is rather good when compared to the industry average which is at 1.71. GRC pays more dividend than 86.82% of the companies in the same industry.
GRC's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of GRC decreases each year by -22.43%.
GRC has been paying a dividend for at least 10 years, so it has a reliable track record.
GRC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-22.43%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
52.74% of the earnings are spent on dividend by GRC. This is a bit on the high side, but may be sustainable.
DP52.74%
EPS Next 2Y19.2%
EPS Next 3YN/A
GORMAN-RUPP CO
NYSE:GRC (4/26/2024, 7:04:00 PM)
33.38
+1.93 (+6.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap875.22M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 20.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 10.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.2% | ||
| PM (TTM) | 5.3% | ||
| GM | 29.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)45.65%
EPS 3Y6.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.57%
Revenue growth 3Y23.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y