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Gorman-Rupp Company
(NYSE:GRC)
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Rating:71Outperform
Price Target:
$82.00
â–²(6.83% Upside)
Action:Upgraded
Date:10/24/26
The score is driven primarily by strong financial performance—meaningful margin expansion, solid and improving free cash flow, and a materially de-risked balance sheet. Offsetting this, technical signals are neutral-to-soft (negative MACD and below key moving averages) and valuation is only fair given the 26.44 P/E with a modest ~1.03% dividend yield.
Positive Factors
Profitability Expansion
Revenue has expanded substantially from $378M in 2021 to $722M TTM, while gross and net margins have strengthened materially. This combination indicates improved earnings quality and operating leverage, giving the company a stronger base for reinvestment and sustained profitability.
Negative Factors
Modest Recent Revenue Growth
Recent top-line growth is modest relative to the company’s longer-term revenue expansion, indicating that current performance is relying more heavily on margin improvement than volume growth. If demand remains subdued, future earnings expansion may be harder to sustain without further efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Expansion
Revenue has expanded substantially from $378M in 2021 to $722M TTM, while gross and net margins have strengthened materially. This combination indicates improved earnings quality and operating leverage, giving the company a stronger base for reinvestment and sustained profitability.
Read all positive factors
Gorman-Rupp Company (GRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.95B
Dividend Yield1.03%
Average Volume (3M)207.05K
Price to Earnings (P/E)26.4
Beta (1Y)0.90
Revenue Growth6.48%
EPS Growth46.20%
CountryUS
Employees1,415
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.79
Shares Outstanding26,410,242
10 Day Avg. Volume190,816
30 Day Avg. Volume207,048
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)3.03
Price to Sales (P/S)1.84
P/FCF Ratio14.13
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue2.99
Enterprise Value/Gross Profit9.31
Enterprise Value/Ebitda15.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.8
Revenue Forecast (FY)$723.73M
Gorman-Rupp Company Business Overview & Revenue Model
Company Description
The Gorman-Rupp Company specializes in the design, production, and distribution of a broad spectrum of pumps and associated systems, serving markets both within the United States and globally. Their comprehensive portfolio encompasses a wide array...
How the Company Makes Money
Gorman-Rupp primarily makes money by selling pumps and pumping systems to customers in municipal and industrial markets. Revenue is generated mainly from (1) product sales of pumps and engineered pumping packages (including packaged lift stations ...
Gorman-Rupp Company Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 722.48M | 682.39M | 659.67M | 659.51M | 521.03M | 378.32M |
| Gross Profit | 231.75M | 209.15M | 204.33M | 196.25M | 130.94M | 95.90M |
| EBITDA | 135.97M | 120.27M | 112.01M | 113.73M | 54.27M | 49.16M |
| Net Income | 73.73M | 53.02M | 40.12M | 34.95M | 11.20M | 29.85M |
Balance Sheet | ||||||
| Total Assets | 878.74M | 860.05M | 858.47M | 890.36M | 872.83M | 420.75M |
| Cash, Cash Equivalents and Short-Term Investments | 59.30M | 35.08M | 24.21M | 30.52M | 6.78M | 125.19M |
| Total Debt | 0.00 | 327.53M | 387.07M | 425.28M | 439.01M | 1.52M |
| Total Liabilities | 417.61M | 445.33M | 484.67M | 540.90M | 541.64M | 90.78M |
| Stockholders Equity | 878.74M | 414.72M | 373.80M | 349.46M | 331.19M | 329.98M |
Cash Flow | ||||||
| Free Cash Flow | 132.93M | 88.85M | 55.51M | 77.39M | -4.30M | 35.69M |
| Operating Cash Flow | 129.91M | 106.23M | 69.83M | 98.22M | 13.69M | 45.44M |
| Investing Cash Flow | -17.22M | -15.34M | -11.87M | -20.16M | -545.67M | -9.17M |
| Financing Cash Flow | -95.81M | -80.86M | -63.14M | -54.53M | 414.11M | -18.55M |
Gorman-Rupp Company Technical Analysis
Positive
76.76
Price Trends
74.92
Negative
78.66
Negative
71.74
Positive
Market Momentum
-0.82
Positive
49.59
Neutral
58.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRC, the sentiment is Positive. The current price of 76.76 is above the 20-day moving average (MA) of 74.05, above the 50-day MA of 74.92, and above the 200-day MA of 71.74, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 58.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRC.
Gorman-Rupp Company Risk Analysis
Gorman-Rupp Company disclosed 20 risk factors in its most recent earnings report. Gorman-Rupp Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gorman-Rupp Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.35B | 28.10 | 11.59% | 1.12% | 7.38% | -10.43% | |
72 Outperform | $8.67B | 23.68 | 16.63% | 1.28% | -0.26% | 29.38% | |
71 Outperform | $1.95B | 26.44 | 13.65% | 1.03% | 6.48% | 46.20% | |
70 Outperform | $16.89B | 32.86 | 12.91% | 1.27% | 7.32% | 12.36% | |
69 Neutral | $25.39B | 25.89 | 9.17% | 1.55% | 4.41% | 9.23% | |
65 Neutral | $8.83B | 13.79 | 17.13% | 1.95% | -2.15% | 8.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GRC
Gorman-Rupp Company
73.76
27.99
61.15%
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FELE
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38.54%
PNR
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55.30
-52.23
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XYL
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108.74
-38.59
-26.19%
Gorman-Rupp Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Gorman-Rupp Implements New Executive Change-of-Control Agreements
Neutral
Oct 2, 2026
On October 1, 2026, Gorman-Rupp adopted new change-of-control severance agreements for key executives, including CEO and President Scott A. King, General Counsel Brigette A. Burnell and CFO Ronald F. Stoops, with an initial one-year term and autom...
Executive/Board Changes
Gorman-Rupp Announces CFO Retirement and Successor Appointment
Neutral
Jul 24, 2026
On July 23, 2026, Gorman-Rupp announced that Executive Vice President and Chief Financial Officer James C. Kerr plans to retire, having served as CFO since 2017 after joining the company in 2016. Kerr, credited with elevating the firm’s fina...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.