GORMAN-RUPP CO (GRC) Stock Fundamental Analysis
NYSE:GRC - New York Stock Exchange, Inc. - US3830821043 - Common Stock - Currency: USD
Taking everything into account, GRC scores 6 out of 10 in our fundamental rating. GRC was compared to 127 industry peers in the Machinery industry. GRC has an average financial health and profitability rating. GRC has a correct valuation and a medium growth rate. Finally GRC also has an excellent dividend rating. These ratings could make GRC a good candidate for dividend investing.
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.
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 5.17%, GRC perfoms like the industry average, outperforming 55.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.61%, GRC is in line with its industry, outperforming 59.84% of the companies in the same industry.
GRC has a Return On Invested Capital of 9.67%. This is in the better half of the industry: GRC outperforms 66.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRC is below the industry average of 10.77%.
The 3 year average ROIC (7.65%) for GRC is below the current ROIC(9.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 11.61% | ||
| ROIC | 9.67% |
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
The Profit Margin of GRC (6.68%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GRC has declined.
GRC has a better Operating Margin (14.02%) than 66.93% of its industry peers.
GRC's Operating Margin has improved in the last couple of years.
GRC has a Gross Margin of 31.05%. This is comparable to the rest of the industry: GRC outperforms 50.39% of its industry peers.
In the last couple of years the Gross Margin of GRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 6.68% | ||
| GM | 31.05% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
GRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that GRC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.21, GRC perfoms like the industry average, outperforming 51.97% of the companies in the same industry.
The Debt to FCF ratio of GRC is 5.28, which is a neutral value as it means it would take GRC, 5.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.28, GRC is in line with its industry, outperforming 51.18% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that GRC is somewhat dependend on debt financing.
GRC's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. GRC is outperformed by 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.95
WACC10.19%
2.3 Liquidity
A Current Ratio of 2.42 indicates that GRC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.42, GRC is doing good in the industry, outperforming 62.20% of the companies in the same industry.
GRC has a Quick Ratio of 1.35. This is a normal value and indicates that GRC is financially healthy and should not expect problems in meeting its short term obligations.
GRC has a Quick ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.41% over the past year.
Measured over the past 5 years, GRC shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
Looking at the last year, GRC shows a small growth in Revenue. The Revenue has grown by 0.91% in the last year.
GRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.62% yearly.
EPS 1Y (TTM)37.41%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%53.33%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y20.36%
Revenue growth 5Y10.62%
Sales Q2Q%2.94%
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 16.83% on average per year.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y20.33%
EPS Next 2Y16.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y3.97%
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
GRC is valuated rather expensively with a Price/Earnings ratio of 19.86.
66.93% of the companies in the same industry are more expensive than GRC, based on the Price/Earnings ratio.
GRC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.88, which indicates a correct valuation of GRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRC indicates a somewhat cheap valuation: GRC is cheaper than 70.08% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GRC to the average of the S&P500 Index (37.36), we can say GRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRC indicates a somewhat cheap valuation: GRC is cheaper than 70.87% of the companies listed in the same industry.
GRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GRC is cheaper than 79.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.94 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GRC has a very decent profitability rating, which may justify a higher PE ratio.
GRC's earnings are expected to grow with 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)4.5
EPS Next 2Y16.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, GRC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, GRC pays a better dividend. On top of this GRC pays more dividend than 85.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GRC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of GRC has a limited annual growth rate of 5.66%.
GRC has been paying a dividend for at least 10 years, so it has a reliable track record.
GRC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.66%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
GRC pays out 43.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
GRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.16%
EPS Next 2Y16.83%
EPS Next 3YN/A
37.94
+0.14 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.86%
Inst Owner Change-0.08%
Ins Owners21.22%
Ins Owner Change25.21%
Market Cap997.44M
Analysts84
Price Target54.06 (42.49%)
Short Float %0.83%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend0.73
Dividend Growth(5Y)5.66%
DP43.16%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.68%
Min EPS beat(2)-2.15%
Max EPS beat(2)3.51%
EPS beat(4)2
Avg EPS beat(4)12.29%
Min EPS beat(4)-11.79%
Max EPS beat(4)59.6%
EPS beat(8)5
Avg EPS beat(8)16.54%
EPS beat(12)5
Avg EPS beat(12)3.15%
EPS beat(16)8
Avg EPS beat(16)2.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-4.76%
Max Revenue beat(4)-1.07%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)0%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 15.88 | ||
| P/S | 1.5 | ||
| P/FCF | 14.94 | ||
| P/OCF | 12.44 | ||
| P/B | 2.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.95 |
EPS(TTM)1.91
EY5.03%
EPS(NY)2.39
Fwd EY6.3%
FCF(TTM)2.54
FCFY6.69%
OCF(TTM)3.05
OCFY8.04%
SpS25.27
BVpS14.53
TBVpS-3.69
PEG (NY)0.98
PEG (5Y)4.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 11.61% | ||
| ROCE | 12.17% | ||
| ROIC | 9.67% | ||
| ROICexc | 9.96% | ||
| ROICexgc | 28% | ||
| OM | 14.02% | ||
| PM (TTM) | 6.68% | ||
| GM | 31.05% | ||
| FCFM | 10.05% |
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%
ROICexcg growth 3Y22.6%
ROICexcg 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-Score9
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 48.33% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.31% | ||
| Profit Quality | 150.49% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.21 |
F-Score9
WACC10.19%
ROIC/WACC0.95
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)37.41%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%53.33%
EPS Next Y20.33%
EPS Next 2Y16.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.91%
Revenue growth 3Y20.36%
Revenue growth 5Y10.62%
Sales Q2Q%2.94%
Revenue Next Year3.45%
Revenue Next 2Y3.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.34%
EBIT growth 3Y32.4%
EBIT growth 5Y15.86%
EBIT Next Year1.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1191.2%
FCF growth 3Y15.86%
FCF growth 5Y1.61%
OCF growth 1Y206.76%
OCF growth 3Y15.4%
OCF growth 5Y2.35%