Bedrijfsoverzicht
The Gorman-Rupp Company (GRC) is a specialized manufacturer dedicated to the design, production, and distribution of diverse pump technologies and comprehensive pump systems for both domestic and international markets. Operating within the Industrials sector under the Specialty Industrial Machinery industry classification, the firm serves critical infrastructure and industrial applications requiring fluid handling solutions such as self-priming centrifugal, magnetic drive, and submersible units. The enterprise currently commands a market capitalization of $1.81B and generated total revenue of $682.39M over the trailing twelve months while employing 1415 individuals across its operational footprint. These financial metrics position GRC as a mid-cap entity with a substantial revenue base that suggests a significant market presence, yet the market cap relative to revenue indicates a valuation that does not yet reflect the premium often associated with large-cap industrial leaders, suggesting the market may still be pricing in specific sector-specific risks or growth constraints.
Financiële gezondheid
During the trailing twelve months, the company reported total revenue of $682.39M, resulting in a net income of $53.02M and an EBITDA of $123.98M. The substantial disparity between the $682.39M revenue figure and the $53.02M net income reveals a significant cost structure where operating expenses, including cost of goods sold and administrative costs, consume approximately 92.2% of total sales before interest and taxes. The business generated free cash flow of $64.03M, which provides the organization with essential financial flexibility to fund capital expenditures, service debt obligations, or return capital to shareholders without relying solely on external financing. Profitability efficiency is evident across three key margin metrics: a gross margin of 31.0% indicates healthy pricing power and manufacturing cost control, an operating margin of 14.6% reflects effective management of overhead and operational leverage, and a profit margin of 7.8% demonstrates the final bottom-line impact of all expenses. On the liability side, the company holds $35.08M in cash against $328.81M in total debt, resulting in a debt-to-equity ratio of 79.28, which signals a leveraged balance sheet where interest coverage depends heavily on operational stability. Liquidity is robust as indicated by a current ratio of 2.37, meaning the company possesses more than double the current assets necessary to cover its short-term liabilities, ensuring it can meet obligations as they come due. Return on equity stands at 13.4% while return on assets is 7.0%, metrics that collectively reveal management's effectiveness in generating returns relative to the shareholders' investment and the total asset base utilized to produce those earnings.
Waarderingsbeoordeling
Valuation multiples show a trailing P/E ratio of 34.07 compared to a forward P/E of 26.58, a divergence that implies the market expects earnings growth to be strong enough to lower the multiple over time, suggesting optimism about future profitability expansion relative to current valuations. The price-to-book ratio is recorded at 4.35, indicating that the stock trades at a significant premium over its book value, which typically reflects investor confidence in the company's intangible assets, brand strength, or pricing power within the specialty machinery sector. Alternative valuation metrics include a price-to-sales ratio of 2.65 and an EV/EBITDA of 16.98, figures that provide a revenue-based and enterprise value-based perspective, suggesting the company is valued at a premium multiple relative to its sales and earnings before interest, taxes, depreciation, and amortization. Price action over the last year has fluctuated between a 52-week high of $69.88 and a 52-week low of $32.17, with the current trading price positioned well below the recent highs, reflecting the volatility inherent in the industrials sector. The stock exhibits a beta of 1.26, meaning its price volatility is historically 26% higher than the broader market index, indicating that the stock will likely experience amplified swings during periods of market stress or rally.
Growth & Income
Growth dynamics are characterized by a revenue growth rate of 2.4% year-over-year contrasted with a significantly higher earnings growth rate of 23.8% year-over-year. This divergence implies that the company is leveraging its existing revenue base more efficiently to drive profitability, likely through cost reductions, mix shifts toward higher-margin products, or operational efficiencies that allow earnings to outpace top-line expansion. As a dividend payer, the company offers a dividend yield of 1.1% with a payout ratio of 36.9%, a conservative payout level that suggests the dividend is well-covered by current earnings and leaves ample room for retention of earnings to fund future growth initiatives. The low payout ratio relative to the earnings growth rate indicates a sustainable and potentially expandable dividend policy that balances income generation with capital reinvestment needs. Overall, the financial profile presents a company with moderate top-line expansion but accelerating profitability, supported by a conservative dividend policy and a balance sheet that, while leveraged, maintains strong short-term liquidity.