GORMAN-RUPP CO (GRC) Stock Fundamental Analysis
USA - NYSE:GRC - US3830821043 - Common Stock
46.87 USD
+0.46 (+0.99%)
46.87 USD
0 (0%)
GRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. GRC scores excellent on profitability, but there are some minor concerns on its financial health. GRC is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years GRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.01%, GRC is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.03%, GRC is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.76%, GRC is doing good in the industry, outperforming 69.77% 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 10.00%.
The last Return On Invested Capital (9.76%) for GRC is above the 3 year average (7.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 13.03% | ||
| ROIC | 9.76% |
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
Looking at the Profit Margin, with a value of 7.69%, GRC is in the better half of the industry, outperforming 62.02% of the companies in the same industry.
In the last couple of years the Profit Margin of GRC has declined.
Looking at the Operating Margin, with a value of 13.95%, GRC is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
GRC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.90%, GRC is in line with its industry, outperforming 49.61% of the companies in the same industry.
GRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.95% | ||
| PM (TTM) | 7.69% | ||
| GM | 30.9% |
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
Compared to 1 year ago, GRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.56 indicates that GRC is not in any danger for bankruptcy at the moment.
GRC has a Altman-Z score of 3.56. This is in the better half of the industry: GRC outperforms 64.34% of its industry peers.
The Debt to FCF ratio of GRC is 4.67, which is a neutral value as it means it would take GRC, 4.67 years of fcf income to pay off all of its debts.
GRC has a Debt to FCF ratio (4.67) which is in line with its industry peers.
A Debt/Equity ratio of 0.80 indicates that GRC is somewhat dependend on debt financing.
GRC's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. GRC is outperformed by 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.96
WACC10.21%
2.3 Liquidity
GRC has a Current Ratio of 2.39. This indicates that GRC is financially healthy and has no problem in meeting its short term obligations.
GRC's Current ratio of 2.39 is fine compared to the rest of the industry. GRC outperforms 61.24% of its industry peers.
GRC has a Quick Ratio of 1.39. This is a normal value and indicates that GRC is financially healthy and should not expect problems in meeting its short term obligations.
GRC's Quick ratio of 1.39 is fine compared to the rest of the industry. GRC outperforms 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.61% over the past year.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
GRC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.59%.
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)29.61%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%11.11%
Revenue 1Y (TTM)2.59%
Revenue growth 3Y20.36%
Revenue growth 5Y10.62%
Sales Q2Q%5.62%
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 18.06% on average per year.
Based on estimates for the next years, GRC will show a small growth in Revenue. The Revenue will grow by 4.17% on average per year.
EPS Next Y21.78%
EPS Next 2Y18.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y4.17%
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
The Price/Earnings ratio is 23.79, which indicates a rather expensive current valuation of GRC.
The rest of the industry has a similar Price/Earnings ratio as GRC.
GRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.22, the valuation of GRC can be described as rather expensive.
GRC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, GRC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRC is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GRC is valued a bit cheaper than 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.09 | ||
| EV/EBITDA | 12.58 |
4.3 Compensation for Growth
GRC's 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 18.06% in the coming years.
PEG (NY)1.09
PEG (5Y)5.39
EPS Next 2Y18.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GRC has a Yearly Dividend Yield of 1.63%.
GRC's Dividend Yield is a higher than the industry average which is at 1.79.
GRC's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 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 37.24% 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.
DP37.24%
EPS Next 2Y18.06%
EPS Next 3YN/A
46.87
+0.46 (+0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.25%
Inst Owner Change0.52%
Ins Owners21.2%
Ins Owner Change7.22%
Market Cap1.23B
Analysts84
Price Target55.08 (17.52%)
Short Float %0.68%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.73
Dividend Growth(5Y)5.66%
DP37.24%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.33%
Min EPS beat(2)3.51%
Max EPS beat(2)5.14%
EPS beat(4)2
Avg EPS beat(4)-1.32%
Min EPS beat(4)-11.79%
Max EPS beat(4)5.14%
EPS beat(8)5
Avg EPS beat(8)10.89%
EPS beat(12)6
Avg EPS beat(12)5.16%
EPS beat(16)8
Avg EPS beat(16)1.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)1.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)1.53%
Revenue beat(8)3
Avg Revenue beat(8)-1.62%
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)1.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 19.22 | ||
| P/S | 1.83 | ||
| P/FCF | 17.09 | ||
| P/OCF | 14.45 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.58 |
EPS(TTM)1.97
EY4.2%
EPS(NY)2.44
Fwd EY5.2%
FCF(TTM)2.74
FCFY5.85%
OCF(TTM)3.24
OCFY6.92%
SpS25.61
BVpS15.12
TBVpS-2.98
PEG (NY)1.09
PEG (5Y)5.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 13.03% | ||
| ROCE | 12.29% | ||
| ROIC | 9.76% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 28.51% | ||
| OM | 13.95% | ||
| PM (TTM) | 7.69% | ||
| GM | 30.9% | ||
| FCFM | 10.71% |
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-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.67 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 47.45% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.08% | ||
| Profit Quality | 139.24% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 3.56 |
F-Score8
WACC10.21%
ROIC/WACC0.96
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)29.61%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%11.11%
EPS Next Y21.78%
EPS Next 2Y18.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.59%
Revenue growth 3Y20.36%
Revenue growth 5Y10.62%
Sales Q2Q%5.62%
Revenue Next Year3.88%
Revenue Next 2Y4.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.25%
EBIT growth 3Y32.4%
EBIT growth 5Y15.86%
EBIT Next Year29.56%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y227.24%
FCF growth 3Y15.86%
FCF growth 5Y1.61%
OCF growth 1Y90.19%
OCF growth 3Y15.4%
OCF growth 5Y2.35%