Gorman-Rupp Company (GRC) AI Stock Analysis

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Gorman-Rupp Company

(NYSE:GRC)

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Rating:72Outperform

Price Target:$83.00▲(22.49% Upside)

Action:reiterated

Date:10/30/26

Overall score is driven primarily by strong financial performance (higher TTM margins, robust and improving free cash flow, and a materially de-risked balance sheet). Offsetting factors include only neutral technical momentum and a somewhat high P/E with a low dividend yield; the recent executive appointment is a smaller supportive positive.

Positive Factors

Improving profitabilityHigher net and gross margins indicate that the company is converting revenue into earnings more effectively. If maintained, this improved profitability can support internal investment, strengthen resilience across municipal and industrial cycles, and enhance long-term earnings quality.

Negative Factors

Moderating revenue growthRecent top-line growth is modest compared with the company’s longer-term expansion, meaning current performance depends more on margin improvement than increasing sales volume. Slower revenue growth could limit operating leverage and make sustained earnings expansion more dependent on efficiency gains.

Gorman-Rupp Company (GRC) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.79B
Dividend Yield: 1.12%
Average Volume (3M): 173.76K
Price to Earnings (P/E): 24.2
Beta (1Y): 0.92
Revenue Growth: 6.48%
EPS Growth: 46.20%
Country: US
Employees: 1,415
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

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 of...

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 and...

Gorman-Rupp Company Financial Statement Overview

Summary

Strong operating turnaround with TTM peak profitability and cash generation. Net margin improved to ~10.2% TTM and free cash flow rose to $133M TTM with solid cash conversion (OCF exceeds net income). Balance sheet appears very conservative in TTM (zero debt), though the sharp debt change versus 2025 warrants verification and revenue growth has moderated.

Income Statement

82Very Positive

Balance Sheet

78Positive

Cash Flow

85Very Positive

Financial statement breakdown
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	234.83M	209.15M	204.33M	196.25M	130.94M	95.90M
EBITDA	143.22M	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	250.23M	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	461.13M	414.72M	373.80M	349.46M	331.19M	329.98M
Cash Flow
Free Cash Flow	118.24M	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

Technical Analysis SentimentNegative

Last Price67.76

Price Trends

50DMA73.83Negative

100DMA77.90Negative

200DMA72.81Negative

Market Momentum

MACD-0.97Positive

RSI35.68Neutral

STOCH19.31Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRC, the sentiment is Negative. The current price of 67.76 is below the 20-day moving average (MA) of 72.85, below the 50-day MA of 73.83, and below the 200-day MA of 72.81, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 35.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

1 New Risk

1.In addition to the information set forth in this report, you should carefully consider the risk factors disclosed in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.Q2, 2026

Gorman-Rupp Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

GRC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEX	79Outperform	$16.67B	31.44	13.31%	1.28%	6.93%	14.08%
GRC	72Outperform	$1.79B	24.20	16.92%	1.12%	6.48%	46.20%
FELE	69Neutral	$4.16B	20.93	14.50%	1.19%	7.28%	45.11%
PNR	65Neutral	$10.88B	17.97	16.02%	1.59%	-3.93%	-4.74%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLS	63Neutral	$10.19B	40.19	11.35%	1.08%	0.21%	-42.26%
XYL	60Neutral	$22.44B	21.64	9.96%	1.73%	1.82%	16.29%

* Industrials Sector Average

Performance Comparison

GRC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GRC	Gorman-rupp	67.76	23.80	54.13%
FLS	Flowserve	80.37	11.49	16.68%
FELE	Franklin Electric	94.17	0.62	0.66%
IEX	Idex Corporation	226.99	60.48	36.32%
PNR	Pentair	68.12	-38.97	-36.39%
XYL	Xylem Inc	97.83	-51.13	-34.33%

Gorman-Rupp Company Corporate Events

Business Operations and StrategyExecutive/Board Changes

Gorman-Rupp Appoints David Daniels as Chief Administrative Officer

Positive

Oct 30, 2026

On October 28, 2026, Gorman-Rupp’s Board of Directors approved the appointment of David J. Daniels Jr. as Chief Administrative Officer, a newly created executive role that will take effect on January 4, 2027. Daniels, currently Group President...

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 automati...

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.

Date of analysis: Oct 30, 2026

Gorman-Rupp Company AI Stock Analysis