GORMAN-RUPP CO (GRC) Stock Fundamental Analysis
NYSE:GRC - New York Stock Exchange, Inc. - US3830821043 - Common Stock - Currency: USD
GRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. GRC has only an average score on both its financial health and profitability. GRC has a correct valuation and a medium growth rate. Finally GRC also has an excellent dividend rating. These ratings would make GRC suitable 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.
In the past 5 years GRC has always been profitable.
In the past 5 years GRC always reported a positive cash flow from operatings.
1.2 Ratios
GRC has a Return On Assets of 5.17%. This is comparable to the rest of the industry: GRC outperforms 55.12% of its industry peers.
With a Return On Equity value of 11.61%, GRC perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
GRC has a better Return On Invested Capital (9.67%) than 66.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GRC is below the industry average of 10.88%.
The last Return On Invested Capital (9.67%) for GRC is above the 3 year average (7.65%), which is a sign of increasing profitability.
| 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
GRC has a Profit Margin (6.68%) which 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 66.14% of its industry peers.
In the last couple of years the Operating Margin of GRC has grown nicely.
GRC has a Gross Margin (31.05%) which is in line with 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.
The number of shares outstanding for GRC remains at a similar level compared to 1 year ago.
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.
The Altman-Z score of GRC (3.21) is comparable to the rest of the industry.
GRC has a debt to FCF ratio of 5.28. This is a neutral value as GRC would need 5.28 years to pay back of all of its debts.
GRC has a Debt to FCF ratio (5.28) which is in line with its industry peers.
GRC has a Debt/Equity ratio of 0.87. This is a neutral value indicating 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
WACC10.23%
2.3 Liquidity
GRC has a Current Ratio of 2.42. This indicates that GRC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GRC (2.42) is better than 62.20% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.35, GRC is in line with its industry, outperforming 57.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
GRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.41%, which is quite impressive.
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.
The Revenue has been growing slightly by 0.91% in the past year.
The Revenue has been growing by 10.62% on average over the past years. This is quite good.
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.
GRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
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.
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
A Price/Earnings ratio of 21.47 indicates a rather expensive valuation of GRC.
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 28.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.16, GRC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GRC is valued a bit cheaper than the industry average as 70.08% of the companies are valued more expensively.
GRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRC is valued a bit cheaper than the industry average as 70.87% of the companies are valued more expensively.
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 | 16.15 | ||
| EV/EBITDA | 10.97 |
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 16.83% in the coming years.
PEG (NY)1.06
PEG (5Y)4.86
EPS Next 2Y16.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, 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 1.87. GRC pays more dividend than 85.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, GRC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 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 43.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.16%
EPS Next 2Y16.83%
EPS Next 3YN/A
41
+3.12 (+8.24%)
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 Cap1.08B
Analysts84
Price Target54.06 (31.85%)
Short Float %0.83%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 | 21.47 | ||
| Fwd PE | 17.16 | ||
| P/S | 1.62 | ||
| P/FCF | 16.15 | ||
| P/OCF | 13.44 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)1.91
EY4.66%
EPS(NY)2.39
Fwd EY5.83%
FCF(TTM)2.54
FCFY6.19%
OCF(TTM)3.05
OCFY7.44%
SpS25.27
BVpS14.53
TBVpS-3.69
PEG (NY)1.06
PEG (5Y)4.86
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
WACC10.23%
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%