GORMAN-RUPP CO (GRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRC - US3830821043 - Common Stock
46.49 USD
-0.04 (-0.09%)
46.49 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GRC. GRC was compared to 130 industry peers in the Machinery industry. GRC has an excellent profitability rating, but 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.
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 decent Return On Assets value of 5.78%, GRC is doing good in the industry, outperforming 64.62% of the companies in the same industry.
The Return On Equity of GRC (12.40%) is better than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.65%, GRC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GRC is below the industry average of 10.35%.
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 Profit Margin of 7.41%. This is in the better half of the industry: GRC outperforms 63.85% of its industry peers.
GRC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.50%, GRC is doing good in the industry, outperforming 66.15% of the companies in the same industry.
GRC's Operating Margin has improved in the last couple of years.
The Gross Margin of GRC (30.36%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRC is destroying value.
GRC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GRC has been increased compared to 5 years ago.
GRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.54 indicates that GRC is not in any danger for bankruptcy at the moment.
GRC has a better Altman-Z score (3.54) than 62.31% of its industry peers.
GRC has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as GRC would need 3.84 years to pay back of all of its debts.
GRC has a Debt to FCF ratio of 3.84. This is in the better half of the industry: GRC outperforms 62.31% of its industry peers.
GRC has a Debt/Equity ratio of 0.74. This is a neutral value indicating GRC is somewhat dependend on debt financing.
The Debt to Equity ratio of GRC (0.74) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.99
WACC9.79%
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 in line with its industry peers.
A Quick Ratio of 1.25 indicates that GRC should not have too much problems paying its short term obligations.
The Quick ratio of GRC (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
GRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.76%, which is quite good.
GRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
GRC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
The Revenue has been growing by 10.62% on average over the past years. This is quite good.
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
Based on estimates for the next years, GRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.30% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
GRC is valuated rather expensively with a Price/Earnings ratio of 23.25.
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 (26.31), we can say GRC is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.38, GRC is valued on the expensive side.
GRC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, GRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRC is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GRC is valued cheaper than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 12.6 |
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.
GRC's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)5.26
EPS Next 2Y17.08%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
GRC has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
GRC's Dividend Yield is a higher than the industry average which is at 1.97.
GRC's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| 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
38.69% of the earnings are spent on dividend by GRC. This is a low number and 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%
46.49
-0.04 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.25%
Inst Owner Change0.06%
Ins Owners21.2%
Ins Owner Change0%
Market Cap1.22B
Revenue(TTM)678.52M
Net Income(TTM)50.25M
Analysts84
Price Target60.18 (29.45%)
Short Float %1.14%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.73
Dividend Growth(5Y)5.66%
DP38.69%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)7.27%
PT rev (3m)9.26%
EPS NQ rev (1m)-3.09%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)-4.98%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 19.38 | ||
| P/S | 1.8 | ||
| P/FCF | 14.57 | ||
| P/OCF | 12.17 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.6 |
EPS(TTM)2
EY4.3%
EPS(NY)2.4
Fwd EY5.16%
FCF(TTM)3.19
FCFY6.86%
OCF(TTM)3.82
OCFY8.22%
SpS25.79
BVpS15.4
TBVpS-2.58
PEG (NY)1.48
PEG (5Y)5.26
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 | 3.54 |
F-Score7
WACC9.79%
ROIC/WACC0.99
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 Year29.56%
EBIT Next 3YN/A
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.
Can you provide the valuation status for GORMAN-RUPP CO?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is GORMAN-RUPP CO?
The financial health rating of GORMAN-RUPP CO (GRC) is 5 / 10.
What is the expected EPS growth for GORMAN-RUPP CO (GRC) stock?
The Earnings per Share (EPS) of GORMAN-RUPP CO (GRC) is expected to grow by 15.72% in the next year.