GORMAN RUPP CO (GRC) - Comprehensive Stock Analysis & Investment Research
Deep dive into GORMAN RUPP CO's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
GORMAN RUPP CO Investment Summary
When evaluating whether GORMAN RUPP CO (GRC) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
GORMAN RUPP CO (GRC) operates within the Technology sector, specifically in the Pumps & Pumping Equipment industry. The company employs approximately 1 people. With a market capitalization of $1 billion, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
GORMAN RUPP CO generates annual revenues of approximately $391 million. The company operates with a net margin of 7.7%, showing modest profitability.
From a profitability standpoint, the company has a Return on Equity (ROE) of 9.2%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at 7.2%, showing reasonable asset productivity. The gross margin of 25.1% suggests a competitive or commodity-driven business model.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 4.85x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations.
Cash Flow Generation
GORMAN RUPP CO generates $26 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $38 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by -17.7%, which merits investor attention.
Valuation Analysis
The P/E ratio of 25.8x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 3.20x, indicating the market values the company above its book value, typical for profitable enterprises. For income-focused investors, the current dividend yield of 0.01% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether GORMAN RUPP CO is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, GORMAN RUPP CO may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
GORMAN RUPP CO (Stock Symbol: GRC) is a prominent company operating within the Technology sector, with a specific focus on the Pumps & Pumping Equipment industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 1 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $1 billion, GORMAN RUPP CO is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk in exchange for potentially higher returns.
Sector & Industry Context
Operating within the Technology sector, GORMAN RUPP CO is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy. The technology sector is known for rapid innovation, high growth potential, and competitive intensity. Companies in this sector must continuously invest in research and development to maintain their competitive edge.
Revenue & Growth Analysis
GORMAN RUPP CO generates annual revenues of $391 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 7.7% net profit margin, indicating acceptable but modest profitability. This margin level is common in competitive industries or those with high operating costs. There may be opportunities for margin expansion through operational improvements or scale efficiencies.
Gross profit margin stands at 25.1%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is 10.2%, indicating moderate operational leverage where fixed costs consume a significant portion of gross profits.
Market Valuation
Current market capitalization stands at $1 billion . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures 9.2%, suggesting below-average capital efficiency that may reflect industry characteristics, high equity base, or operational challenges.
Return on Assets (ROA) stands at 7.2%, showing moderate asset utilization common in capital-intensive industries like manufacturing or utilities.
Return on Invested Capital (ROIC) measures 9.2%, suggesting returns roughly in line with typical corporate cost of capital, indicating value maintenance but limited value creation.
Cash Flow Generation
Free cash flow generation of $26 million annually indicates positive cash generation, though at a modest level that may limit flexibility for major investments or returns to shareholders.
Operating cash flow reaches $38 million , with year-over-year growth of -17.7%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
GORMAN RUPP CO strategically competes in the highly dynamic Pumps & Pumping Equipment marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
GORMAN RUPP CO operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $26 million annually , with year-over-year cash flow growth of -17.7%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 25.1% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of 10.2% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.
Asset Utilization Efficiency
Asset turnover ratio of 0.94x indicates solid asset utilization efficiency appropriate for many manufacturing or mixed business models. This level suggests the company generates meaningful revenue from its asset base while maintaining necessary capital investments for operations.
Financial Strength & Leverage
Current ratio of 4.85 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.