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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.6%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.59%
Trailing Yield
$1.59
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
51%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, GORMAN RUPP CO (GRC) receives a "Hold" rating with a composite score of 53.2/100, ranked #461 out of 4446 stocks. Key factor scores: Quality 50/100, Value 59/100, Momentum 69/100. This is quantitative analysis only — not investment advice.
GORMAN RUPP CO (GRC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does GORMAN RUPP CO Do?
The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company's products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, military, and other liquid-handling applications, as well as in heating, ventilating, and air conditioning applications. The company markets its products through a network of distributors, manufacturers' representatives, third-party distributor catalogs, direct sales, and commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio. GORMAN RUPP CO (GRC) is classified as a small-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Scott A. King and employs approximately 1,150 people, headquartered in MANSFIELD, Ohio. With a market capitalization of $1.7B, GRC is one of the notable companies in the Industrials sector.
GORMAN RUPP CO (GRC) Stock Rating — Hold (April 2026)
As of April 2026, GORMAN RUPP CO receives a Hold rating with a composite score of 53.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GRC ranks #461 out of 4,446 stocks in our coverage universe. Within the Industrials sector, GORMAN RUPP CO ranks #77 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GRC Stock Price and 52-Week Range
GORMAN RUPP CO (GRC) currently trades at $68.97. The stock lost $0.26 (0.4%) in the most recent trading session. The 52-week high for GRC is $68.02, which means the stock is currently trading 1.4% from its annual peak. The 52-week low is $30.87, putting the stock 123.4% above its annual trough. Recent trading volume was 21K shares, suggesting relatively thin trading activity.
Is GRC Overvalued or Undervalued? — Valuation Analysis
GORMAN RUPP CO (GRC) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 32.17x, compared to the Industrials sector average of 28.33x — a premium of 14%. The price-to-book ratio stands at 4.05x, versus the sector average of 2.23x. The price-to-sales ratio is 2.45x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, GRC trades at 17.93x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 21.97x.
Overall, GRC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
GORMAN RUPP CO Profitability — ROE, Margins, and Quality Score
GORMAN RUPP CO (GRC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.6%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 6.1% versus the sector average of 3.3%.
On a margin basis, GORMAN RUPP CO reports gross margins of 30.6%, compared to 35.8% for the sector. The operating margin is 13.8% (sector: 6.2%). Net profit margin stands at 7.6%, versus 3.9% for the average Industrials stock. Revenue growth is running at 1.9% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
GRC Debt, Balance Sheet, and Financial Health
GORMAN RUPP CO has a debt-to-equity ratio of 74.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.37x, indicating strong short-term liquidity. Total debt on the balance sheet is $308M. Cash and equivalents stand at $43M.
GRC has a beta of 1.01, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for GORMAN RUPP CO is 70/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
GORMAN RUPP CO Revenue and Earnings History — Quarterly Trend
In TTM 2026, GORMAN RUPP CO reported revenue of $684M and earnings per share (EPS) of $2.02. Net income for the quarter was $52M. Gross margin was 30.6%. Operating income came in at $94M.
In FY 2025, GORMAN RUPP CO reported revenue of $682M and earnings per share (EPS) of $2.02. Net income for the quarter was $53M. Gross margin was 30.6%. Revenue grew 3.4% year-over-year compared to FY 2024. Operating income came in at $95M.
In Q3 2025, GORMAN RUPP CO reported revenue of $173M and earnings per share (EPS) of $0.43. Net income for the quarter was $11M. Gross margin was 29.2%. Revenue grew 2.8% year-over-year compared to Q3 2024. Operating income came in at $21M.
In Q2 2025, GORMAN RUPP CO reported revenue of $179M and earnings per share (EPS) of $0.60. Net income for the quarter was $16M. Gross margin was 31.3%. Revenue grew 5.6% year-over-year compared to Q2 2024. Operating income came in at $27M.
Over the past 8 quarters, GORMAN RUPP CO has demonstrated a growth trajectory, with revenue expanding from $170M to $684M. Investors analyzing GRC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GRC Dividend Yield and Income Analysis
GORMAN RUPP CO (GRC) currently pays a dividend yield of 1.6%. At this yield, a $10,000 investment in GRC stock would generate approximately $$159.00 in annual dividend income. The net margin of 7.6% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
GRC Momentum and Technical Analysis Profile
GORMAN RUPP CO (GRC) has a momentum factor score of 69/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GRC vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing GRC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GRC vs S&P 500 (SPY) comparison to assess how GORMAN RUPP CO stacks up against the broader market across all factor dimensions.
GRC Next Earnings Date
No upcoming earnings date has been announced for GORMAN RUPP CO (GRC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GRC? — Investment Thesis Summary
GORMAN RUPP CO presents a balanced picture with arguments on both sides. Price momentum is positive at 69/100, suggesting the trend favors buyers. Low volatility (stability score 70/100) reduces downside risk.
In summary, GORMAN RUPP CO (GRC) earns a Hold rating with a composite score of 53.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GRC stock.
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Institutional Research Dossier
GORMAN RUPP CO (GRC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Gorman-Rupp (GRC). While the company demonstrates solid profitability and stability within the industrial machinery sector, its relatively high valuation and modest revenue growth temper our enthusiasm. The company's strong operating and net margins, coupled with a healthy balance sheet, are positives, but the current price appears to reflect much of this strength, leaving limited upside potential.
The core reason for the Hold rating stems from the combination of a premium valuation relative to peers and a lack of compelling growth catalysts. While Gorman-Rupp's established market position and diverse product portfolio provide a degree of resilience, the company's ability to significantly outperform the sector appears limited in the near term. Investors seeking exposure to the industrial machinery sector may find more attractive opportunities elsewhere, given the current risk/reward profile.
Business Strategy & Overview
The Gorman-Rupp Company operates as a designer, manufacturer, and seller of pumps and pump systems, catering to a diverse range of industries globally. Their product portfolio encompasses a wide array of pump types, including self-priming centrifugal, standard centrifugal, submersible, and rotary gear pumps, among others. This diversification allows them to serve various applications across water, wastewater, construction, industrial, petroleum, agricultural, and military sectors. The company's revenue generation is primarily driven by the sale of these pumps and related systems, with a focus on providing solutions for liquid-handling needs.
Gorman-Rupp's strategic positioning revolves around maintaining a strong presence in its core markets while selectively expanding into new areas. They achieve this through a multi-channel distribution network, including distributors, manufacturers' representatives, direct sales, and third-party catalogs. This approach allows them to reach a broad customer base and tailor their sales efforts to specific market segments. Furthermore, the company emphasizes product innovation and customization to meet the evolving needs of its customers, fostering long-term relationships and repeat business.
The company's industry context is characterized by cyclical demand patterns, influenced by factors such as infrastructure spending, construction activity, and industrial production. Gorman-Rupp competes with a mix of large multinational corporations and smaller regional players, requiring them to differentiate themselves through product quality, reliability, and customer service. The company's focus on niche applications and specialized pump solutions provides a competitive edge in certain segments of the market.
Gorman-Rupp's strategic priorities include investing in research and development to enhance its product offerings, expanding its geographic reach through strategic partnerships and acquisitions, and improving operational efficiency to maintain profitability. The company's management team has a track record of prudent capital allocation and a commitment to delivering sustainable long-term value to shareholders. However, the company's relatively modest revenue growth compared to the sector average suggests a need for more aggressive expansion strategies or a greater focus on higher-growth market segments.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.9%
Sector: 6.4%
-69% VS SCTR
Economic Moat Analysis
Gorman-Rupp's economic moat can be characterized as Narrow. The company benefits from a combination of factors that provide a degree of competitive advantage, but these advantages are not substantial enough to warrant a Wide moat rating. The primary sources of Gorman-Rupp's moat are its established brand reputation, specialized product offerings, and distribution network.
The company has cultivated a strong brand reputation over its long history, particularly within specific niche markets. This reputation is built on the reliability and durability of its pumps, which are critical factors for customers in industries such as water and wastewater treatment. While brand recognition provides a competitive edge, it is not insurmountable, as competitors can invest in building their own reputations over time.
Gorman-Rupp's focus on specialized pump solutions and customized products also contributes to its moat. By catering to specific customer needs and offering tailored solutions, the company can differentiate itself from competitors offering more generic products. However, this advantage is limited by the fact that competitors can also develop specialized solutions, albeit with potentially higher upfront costs.
The company's distribution network, which includes distributors, manufacturers' representatives, and direct sales, provides a valuable channel to market. This network allows Gorman-Rupp to reach a broad customer base and provide localized support. However, distribution networks are not inherently difficult to replicate, and competitors can establish their own networks or partner with existing distributors.
While Gorman-Rupp possesses certain advantages, the absence of significant switching costs, network effects, or proprietary technology limits the strength of its moat. Customers can relatively easily switch to alternative pump suppliers if they offer better pricing, performance, or service. The company's moat is therefore vulnerable to competitive pressures and requires ongoing investment in product innovation and customer relationships to maintain its competitive position.
Financial Health & Profitability
Gorman-Rupp demonstrates a reasonably sound financial health profile, characterized by consistent profitability and a manageable debt load. The company's revenue has shown modest growth, with TTM revenue at $682.39 million, a slight increase from $659.67 million in FY2024 and $659.51 million in FY2023. However, this growth lags behind the sector average of 6.6%, indicating a potential area for improvement.
The company's profitability metrics are generally strong, with a TTM net income of $53.02 million and an EBITDA of $107.73 million. The net margin of 7.6% significantly exceeds the sector average of 3.7%, highlighting Gorman-Rupp's ability to generate profits efficiently. Similarly, the operating margin of 13.8% is more than double the sector average of 6.2%, demonstrating effective cost management and operational efficiency. The gross margin of 30.6% is slightly below the sector average of 35.8%, suggesting potential opportunities to improve cost of goods sold.
Gorman-Rupp's balance sheet exhibits a healthy current ratio of 2.37, indicating strong liquidity and the ability to meet short-term obligations. The company holds $42.94 million in total cash, providing a buffer against unforeseen circumstances. However, the total debt of $307.53 million results in a debt-to-equity ratio of 74.00, slightly above the sector average of 70.00, suggesting a moderate level of leverage.
Reviewing the quarterly financial history reveals consistent profitability, with net income ranging from $6.52 million to $15.80 million per quarter. The operating margin has remained relatively stable, fluctuating between 11.9% and 15.4%. Free cash flow generation has been positive, with $79.86 million in FY2024, although FCF data is not available for all periods. Overall, Gorman-Rupp's financial health is solid, but the company's relatively slow revenue growth and moderate leverage warrant careful monitoring.
Valuation Assessment
Gorman-Rupp's valuation presents a mixed picture. The company's P/E ratio of 29.1x is slightly above the sector average of 27.7x, suggesting a modest premium. However, the EV/EBITDA ratio of 4.3x is significantly below the sector average of 5.7x, indicating that the company may be undervalued on an enterprise value basis. The market capitalization is $1.55 billion.
The company's ROE of 12.6% exceeds the sector average of 9.2%, reflecting efficient utilization of equity. However, the relatively slow revenue growth of 2.0% compared to the sector average of 6.6% raises concerns about the company's growth prospects. A higher growth rate would typically justify a higher valuation multiple.
Given the company's solid profitability and stability, a premium valuation may be warranted. However, the current P/E ratio appears to reflect much of the company's strengths, leaving limited upside potential. The relatively low EV/EBITDA ratio may indicate an undervaluation, but this could be due to concerns about the company's growth prospects or its debt load.
Considering the company's financial performance, growth rate, and sector comparisons, the stock appears to be fairly valued at its current price. While the company's profitability and stability are attractive, the relatively slow revenue growth and moderate leverage limit the potential for significant price appreciation. A more compelling valuation would require either a significant improvement in the company's growth prospects or a decline in its stock price.
Risk & Uncertainty
Gorman-Rupp faces several risks that could impact its financial performance and valuation. One significant risk is the cyclical nature of the industries it serves, including construction, industrial, and water/wastewater treatment. Economic downturns or slowdowns in these sectors could lead to reduced demand for the company's products, negatively affecting revenue and profitability.
Another risk is the intense competition within the pump and pump systems market. Gorman-Rupp competes with a mix of large multinational corporations and smaller regional players, all vying for market share. Increased competition could lead to pricing pressures and reduced margins, particularly in commoditized product segments. The company's ability to differentiate itself through product innovation and customer service is crucial to mitigating this risk.
The company's reliance on a network of distributors and manufacturers' representatives also presents a risk. Disruptions in the distribution channel or the loss of key distributors could negatively impact sales and market access. Maintaining strong relationships with its distribution partners and diversifying its distribution channels are important strategies for mitigating this risk.
Gorman-Rupp's moderate level of debt also poses a risk, particularly in a rising interest rate environment. Increased interest expenses could reduce profitability and cash flow, potentially limiting the company's ability to invest in growth initiatives or return capital to shareholders. Prudent debt management and a focus on deleveraging are essential for mitigating this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGorman-Rupp's consistent profitability and strong balance sheet provide a solid foundation for long-term value creation, making it a reliable investment in the industrial sector.
BULL VIEWThe company's focus on specialized pump solutions and niche markets allows it to command premium pricing and maintain higher margins compared to its competitors.
BULL VIEWGorman-Rupp's established distribution network and strong customer relationships provide a competitive advantage and ensure a steady stream of recurring revenue.
The Bear Case
BEAR VIEWGorman-Rupp's relatively slow revenue growth compared to the sector average limits its upside potential and makes it difficult to justify its premium valuation.
BEAR VIEWThe cyclical nature of the industries Gorman-Rupp serves exposes the company to significant downside risk during economic downturns.
BEAR VIEWThe company's moderate level of debt and reliance on distributors create vulnerabilities that could negatively impact its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GRC and 4,400+ other equities.
GORMAN RUPP CO exhibits a 175% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.1%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
30.6%
Sector: 35.8%
Operating Margin
Core business profitability
13.8%
Sector: 6.2%
Net Margin
Bottom-line profitability
7.6%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $159 annually in dividends at the current trailing rate.
