GORMAN-RUPP CO (GRC) Stock Fundamental Analysis
NYSE:GRC - New York Stock Exchange, Inc. - US3830821043 - Common Stock - Currency: USD
GRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and the financial health of GRC get a neutral evaluation. Nothing too spectacular is happening here. GRC is not valued too expensively and it also shows a decent growth rate. Finally GRC also has an excellent dividend rating. These ratings could make GRC a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year GRC was profitable.
In the past year GRC had a positive cash flow from operations.
In the past 5 years GRC has always been profitable.
GRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GRC has a Return On Assets of 4.31%. This is comparable to the rest of the industry: GRC outperforms 53.60% of its industry peers.
GRC has a Return On Equity (10.38%) which is comparable to the rest of the industry.
GRC's Return On Invested Capital of 9.42% is fine compared to the rest of the industry. GRC outperforms 66.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GRC is below the industry average of 11.00%.
The last Return On Invested Capital (9.42%) for GRC is above the 3 year average (7.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 10.38% | ||
| ROIC | 9.42% |
ROA(3y)4.1%
ROA(5y)5.61%
ROE(3y)7.48%
ROE(5y)8.41%
ROIC(3y)7.4%
ROIC(5y)8.13%
1.3 Margins
The Profit Margin of GRC (5.80%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GRC has declined.
GRC has a better Operating Margin (14.01%) than 70.40% of its industry peers.
GRC's Operating Margin has been stable in the last couple of years.
GRC has a Gross Margin (31.34%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.01% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.34% |
OM growth 3Y8.76%
OM growth 5Y1.05%
PM growth 3Y-9.8%
PM growth 5Y-11.31%
GM growth 3Y5.04%
GM growth 5Y2.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
GRC has an Altman-Z score of 3.09. This indicates that GRC is financially healthy and has little risk of bankruptcy at the moment.
GRC has a Altman-Z score (3.09) which is comparable to the rest of the industry.
GRC has a debt to FCF ratio of 5.23. This is a neutral value as GRC would need 5.23 years to pay back of all of its debts.
GRC's Debt to FCF ratio of 5.23 is in line compared to the rest of the industry. GRC outperforms 52.80% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that GRC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, GRC is not doing good in the industry: 82.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.86
WACC10.94%
2.3 Liquidity
A Current Ratio of 2.39 indicates that GRC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.39, GRC is doing good in the industry, outperforming 62.40% of the companies in the same industry.
GRC has a Quick Ratio of 1.38. This is a normal value and indicates that GRC is financially healthy and should not expect problems in meeting its short term obligations.
GRC has a Quick ratio of 1.38. This is comparable to the rest of the industry: GRC outperforms 55.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
GRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.60%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
EPS 1Y (TTM)30.6%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%23.53%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.33%
3.2 Future
GRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.84% yearly.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y17.74%
EPS Next 2Y15.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.6%
Revenue Next 2Y3.78%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.37, the valuation of GRC can be described as rather expensive.
GRC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. GRC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.00, which indicates a rather expensive current valuation of GRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRC indicates a somewhat cheap valuation: GRC is cheaper than 64.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, GRC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRC is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GRC is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.08 | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GRC's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)1.26
PEG (5Y)5.07
EPS Next 2Y15.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GRC has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
GRC's Dividend Yield is rather good when compared to the industry average which is at 1.67. GRC pays more dividend than 85.60% of the companies in the same industry.
GRC's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.66%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
GRC pays out 49.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
GRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.52%
EPS Next 2Y15.84%
EPS Next 3YN/A
39.14
-0.62 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.39%
Inst Owner Change0.26%
Ins Owners21.11%
Ins Owner Change0%
Market Cap1.03B
Analysts84
Price Target54.06 (38.12%)
Short Float %0.69%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.73
Dividend Growth(5Y)5.66%
DP49.52%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.9%
Min EPS beat(2)-11.79%
Max EPS beat(2)59.6%
EPS beat(4)2
Avg EPS beat(4)18.86%
Min EPS beat(4)-12.64%
Max EPS beat(4)59.6%
EPS beat(8)4
Avg EPS beat(8)10.84%
EPS beat(12)5
Avg EPS beat(12)1.91%
EPS beat(16)7
Avg EPS beat(16)1.18%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-4.76%
Max Revenue beat(2)-3.42%
Revenue beat(4)1
Avg Revenue beat(4)-3.26%
Min Revenue beat(4)-6.27%
Max Revenue beat(4)1.4%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)6%
EPS NQ rev (1m)-5.56%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)-7.3%
EPS NY rev (3m)-7.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 19 | ||
| P/S | 1.56 | ||
| P/FCF | 14.08 | ||
| P/OCF | 11.78 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.49 |
EPS(TTM)1.75
EY4.47%
EPS(NY)2.06
Fwd EY5.26%
FCF(TTM)2.78
FCFY7.1%
OCF(TTM)3.32
OCFY8.49%
SpS25.07
BVpS14
TBVpS-4.5
PEG (NY)1.26
PEG (5Y)5.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 10.38% | ||
| ROCE | 11.77% | ||
| ROIC | 9.42% | ||
| ROICexc | 9.92% | ||
| ROICexgc | 28.6% | ||
| OM | 14.01% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.34% | ||
| FCFM | 11.09% |
ROA(3y)4.1%
ROA(5y)5.61%
ROE(3y)7.48%
ROE(5y)8.41%
ROIC(3y)7.4%
ROIC(5y)8.13%
ROICexc(3y)9%
ROICexc(5y)10.44%
ROICexgc(3y)18.39%
ROICexgc(5y)16.88%
ROCE(3y)9.24%
ROCE(5y)10.15%
ROICexcg growth 3Y25.22%
ROICexcg growth 5Y8.49%
ROICexc growth 3Y-7.42%
ROICexc growth 5Y-9.6%
OM growth 3Y8.76%
OM growth 5Y1.05%
PM growth 3Y-9.8%
PM growth 5Y-11.31%
GM growth 3Y5.04%
GM growth 5Y2.33%
F-Score9
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.23 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 50.32% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.36% | ||
| Profit Quality | 191.31% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.09 |
F-Score9
WACC10.94%
ROIC/WACC0.86
Cap/Depr(3y)80%
Cap/Depr(5y)76.48%
Cap/Sales(3y)3.06%
Cap/Sales(5y)2.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.6%
EPS 3Y10.7%
EPS 5Y4.42%
EPS Q2Q%23.53%
EPS Next Y17.74%
EPS Next 2Y15.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.33%
Revenue Next Year3.6%
Revenue Next 2Y3.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.29%
EBIT growth 3Y34.47%
EBIT growth 5Y10.89%
EBIT Next Year42.31%
EBIT Next 3Y15.25%
EBIT Next 5YN/A
FCF growth 1Y7119.31%
FCF growth 3Y21.49%
FCF growth 5Y20.66%
OCF growth 1Y431.01%
OCF growth 3Y24.29%
OCF growth 5Y18.97%