One-glance verdict
Overvalued
$44.56 our estimate vs market $80.41
Wall Street consensus: $75.00 (68.3% higher than our fair-value estimate)
80% above our estimate, beyond the bull case
Fundamentals snapshot
The Gorman-Rupp Company
GRC · NYQ · Industrials · Specialty Industrial Machinery
Current price
$80.41
52-week range
$36.41 - $92.78
Market cap
$2.12B
Balance sheet
Watch
4.08x Stretched
Net debt $263.50M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 14.5% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Reward Dividend yield is 1.0% with 40-year payout history.
- Risk Stock trades 6.7% above its 5-year average P/E.
What this company does
The Gorman-Rupp Company
Gorman-Rupp builds and sells specialized pumps that are crucial for moving liquids in essential areas like wastewater management, firefighting, and construction. The company earns its money from this wide range of industries, which can lead to stable demand and consistent profit margins (the percentage of sales that turns into profit). Because these pumps are necessary for so many fundamental services, the business isn't heavily reliant on any single part of the economy.
How the company got here
The Gorman-Rupp Company started in 1933 when two engineers, J.C. Gorman and H.E. Rupp, began a pump manufacturing business in a barn in Ohio. They focused on creating a simple but effective self-priming centrifugal pump, a type of pump that can handle intermittent water flow without losing pressure. The company grew significantly during World War II by supplying pumps to the U.S. military. Over the years, Gorman-Rupp expanded by developing new types of pumps and acquiring other companies, like Patterson Pump Company, which makes large-volume pumps for things like flood control.
What it actually does
Gorman-Rupp makes and sells a wide variety of pumps and pump systems that move liquids. Think of them as the heart of many systems that require water or other fluids to be moved from one place to another. Their products are used in many different situations, from providing water to a city, to removing water from a construction site, to pumping fuel. You might not see their products in a store, but they are a critical part of many essential services we rely on every day.
Water Markets
This is a major part of Gorman-Rupp's business and includes several areas where their pumps are used to manage water. For municipal customers, they provide large pumps for water and wastewater treatment plants that ensure clean drinking water and proper sewage disposal. In construction, their pumps are used for dewatering (removing unwanted water from a site). They also serve the agricultural market with pumps for irrigation, and provide fire suppression pumps for buildings.
Industrial & Petroleum Markets
This segment provides pumps for a wide range of industrial and manufacturing processes. These pumps might be used to move chemicals, petroleum products, or other fluids essential for production. For example, their pumps are used in refueling aircraft and in various stages of chemical processing. This part of the business serves customers who need reliable and durable pumps for demanding applications.
Original Equipment Manufacturer (OEM) Markets
In this part of their business, Gorman-Rupp sells pumps to other companies to include as a component in their own products. This is often referred to as the OEM (Original Equipment Manufacturer) market. For instance, a company that makes heating and cooling systems might buy Gorman-Rupp pumps to install in their units. This segment focuses on providing customized pump solutions for other manufacturers.
What management is betting on now
Gorman-Rupp's current strategy focuses on a few key areas for growth. They are looking to expand their business internationally, as a large portion of their sales are currently in the U.S. The company is also actively looking for opportunities to acquire other pump-related businesses that would be a good fit with their existing product lines. Additionally, they see opportunities in the growing need to update aging water and wastewater infrastructure and in new areas of demand like data centers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$19.43M
FY2024 Q3
$24.00M
FY2024 Q4
$5.25M
FY2025 Q1
$18.08M
FY2025 Q2
$24.83M
FY2025 Q3
$35.79M
FY2025 Q4
$10.15M
FY2026 Q1
$17.73M
Revenue
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Net income
$17.84M
Diluted EPS
0.68
Operating cash flow
$21.99M
Free cash flow
$17.73M
Fetching…
Sources
Revenue
—
Net income
$13.75M
Diluted EPS
0.53
Operating cash flow
$15.00M
Free cash flow
$10.15M
Fetching…
Sources
Revenue
—
Net income
$11.34M
Diluted EPS
0.43
Operating cash flow
$42.34M
Free cash flow
$35.79M
Fetching…
Sources
Revenue
—
Net income
$15.80M
Diluted EPS
0.60
Operating cash flow
$27.79M
Free cash flow
$24.83M
Fetching…
Sources
Revenue
—
Net income
$12.13M
Diluted EPS
0.46
Operating cash flow
$21.10M
Free cash flow
$18.08M
Fetching…
Sources
Revenue
—
Net income
$10.98M
Diluted EPS
0.42
Operating cash flow
$9.26M
Free cash flow
$5.25M
Fetching…
Sources
Revenue
—
Net income
$12.92M
Diluted EPS
0.49
Operating cash flow
$27.18M
Free cash flow
$24.00M
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Sources
Revenue
—
Net income
$8.34M
Diluted EPS
0.32
Operating cash flow
$22.66M
Free cash flow
$19.43M
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Sources
Is it cheap or expensive?
Fair value $44.56 vs current price $80.41
Wall Street consensus is the average analyst price target: $75.00 (68.3% higher than our fair-value estimate).
Our most-likely fair value is $44.56 a share — about 44.6% below today's price of $80.41, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $263.5M. Interest coverage 4.1x.
Net debt
$263.50M
Interest coverage
4.08x
The Gorman-Rupp Company's profit covers its interest bill about 4.1 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
GRC
BASELINE
The Gorman-Rupp Company
Total debt $293.36M Interest coverage 4.08x This is the baseline the peer rows are being compared against.
Total debt $1.89B Interest coverage 6.68x +64% vs GRC Carries about 1.6x more debt cushion than GRC.
Total debt $1.90B Interest coverage 11.18x +174% vs GRC Carries about 2.7x more debt cushion than GRC.
Total debt $3.96B Interest coverage 14.23x +249% vs GRC Carries about 3.5x more debt cushion than GRC.
Total debt $52.89M Interest coverage 211.11x +5,079% vs GRC Carries about 51.8x more debt cushion than GRC.
What you should know
The case for and against GRC
3 Rewards
1 Risk
Rewards
-
Returns 14.5% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 1.0% with 40-year payout history.
Risks
-
Stock trades 6.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.90x
Forward P/E
26.83x
P/B
4.99x
P/S
3.06x
EV/EBITDA
18.25x
PEG ratio
2.31x
Profitability
How much profit each dollar creates
Gross margin
31.5%
Operating margin
15.4%
Net margin
8.5%
ROE
14.5%
ROA
7.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
2.93x
Quick ratio
1.62x
Total debt
$293.36M
Total cash
$29.86M
Growth
How the business has been compounding
Revenue TTM
$379.39M
Revenue 5Y CAGR
-0.8%
EPS TTM
2.24
EPS 5Y CAGR
67.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$107.11M
Free CF TTM
$88.85M
FCF margin
23.4%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
33.5%
Last ex-div date
2026-05-15