The Gorman-Rupp Company (GRC) AI Stock Analysis
GRC AI stock analysis summary
AI ResearchThe Gorman-Rupp Company (GRC) designs and manufactures pumps and pump systems for water management, industrial processes, and other applications. Across the trailing twelve months, the company generated $702.1M in revenue with an operating margin of 16.2%. The stock trades at a trailing P/E of 30.3x and delivered a 57.3% return over the past year.
- Market cap
- $1.90B
- Revenue (TTM)
- $702.1M
- P/E
- 30.3x fwd 24.0x
- 1Y return
- 57.3% S&P 500 16.8%
- Avg. target
- $80.67 12.2% vs last close
Bull case
- Trailing twelve-month operating margin reached 16.2%, exceeding the peer median of 11.7% for US-listed Industrials.
- Free cash flow grew to $88.9M in FY2025, supported by $106.2M in operating cash flow.
- Quarterly earnings increased 22.5% year-over-year in the period ended June 30, 2026.
Bear case
- The trailing P/E of 30.3x trades at a premium to the US-listed Industrials peer median of 24.8x.
- Top-line growth has decelerated from 26.6% in FY2023 to 0.0% in FY2024 and 3.4% in FY2025.
- The balance sheet carries net debt of $231.4M with only $43.6M in cash and short-term investments as of June 30, 2026.
What Gorman-Rupp does
The Gorman-Rupp Company manufactures and distributes pumps and pump systems across the United States and globally. Its portfolio includes self-priming centrifugal, magnetic drive centrifugal, axial and mixed flow, and submersible pumps. These products serve water management, wastewater treatment, construction, industrial processes, petroleum handling, agriculture, fire protection, and HVAC systems. Founded in 1933 and based in Mansfield, Ohio, the company distributes through distributors, manufacturers' representatives, third-party catalogs, direct sales channels, and online commerce platforms, supported by ongoing investment in research and development.
Growth and profitability
Revenue increased from $378.3M in FY2021 to $682.4M in FY2025, recording a 5-year revenue CAGR of 14.4% from FY2020 to FY2025. Annual top-line growth slowed from 37.7% in FY2022 and 26.6% in FY2023 to 0.0% in FY2024 and 3.4% in FY2025. Profitability expanded over this period, with gross margin moving from 25.3% in FY2021 to 28.8% in FY2025, while operating margin rose from 10.4% to 14.0%. Net income reached $53.0M in FY2025, up from $11.2M in FY2022. For the latest quarter ended June 30, 2026, quarterly revenue grew 3.9% year-over-year, while quarterly earnings grew 22.5%.
Balance sheet and cash flow
As of June 30, 2026, cash and short-term investments totaled $43.6M against total debt of $275.0M, resulting in net debt of $231.4M. Shareholders' equity stood at $441.4M on total assets of $866.5M, supporting a debt-to-equity ratio of 0.62 and a current ratio of 2.81. In FY2025, operating cash flow was $106.2M and free cash flow reached $88.9M. Capital allocation in FY2025 included $17.4M in capital expenditures, $19.6M in dividends paid, and $1.2M in share buybacks.
Valuation and performance
GRC trades at a trailing P/E of 30.3x and a forward P/E of 24.0x, above the median of its US-listed Industrials peers of 24.8x trailing and 17.2x forward. Its price-to-sales multiple of 2.7x and EV/EBITDA of 17.0x also sit higher than the peer medians of 1.5x and 13.9x, respectively. The stock's enterprise value is $2.20B compared to a market cap of $1.90B. GRC delivered a 1-year return of 57.3%, outperforming the S&P 500 (SPY) return of 16.8%, and a 5-year return of 101.9% versus 83.0% for the index.
GRC dividend
GRC pays a quarterly dividend with an annualized forward rate of $0.76 per share, yielding 1.06%. The payout ratio is 30.5%, and dividends have grown at an annualized 5-year rate of 4.8%. The company has paid consecutive dividends for 42 years, with its last ex-dividend date on August 14, 2026.
What analysts expect
Wall Street coverage consists of 1 Strong Buy, 0 Buy, 1 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target of $80.67 sits 12.2% above the last close of $71.89. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $2.81 on revenue of $723.7M. For the following fiscal year, 3 analysts forecast EPS of $3.16 and revenue of $764.6M. GRC beat EPS estimates in 3 of the last 4 quarters, with the next earnings date scheduled for October 23, 2026.
Key risks and what to watch
- A beta of 1.32 indicates the stock exhibits higher price volatility than the broader equity market.
- Quarterly revenue growth slowed to 3.9% year-over-year, trailing the US-listed Industrials peer median of 9.1%.
- Total debt of $275.0M represents a debt-to-equity ratio of 0.62 that requires ongoing debt service.
- The stock traded at $71.89 as of October 16, 2026, down from its 52-week high of $92.78.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GRC AI stock analysis
This page is an AI-written research summary of The Gorman-Rupp Company (GRC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GRC income statement, GRC balance sheet, GRC key metrics, GRC analyst forecast, GRC chart. See the GRC stock overview for the latest quote and news.
GRC AI stock analysis FAQ
What was GRC's revenue and earnings in FY2025?
In FY2025, The Gorman-Rupp Company reported revenue of $682.4M, net income of $53.0M, and diluted EPS of $2.13.
Does GRC pay a dividend?
Yes, GRC offers an annualized forward dividend of $0.76 per share, representing a 1.06% dividend yield and a payout ratio of 30.5%.
What is GRC's current valuation compared to industry peers?
GRC trades at a trailing P/E of 30.3x and an EV/EBITDA of 17.0x, compared to the US-listed Industrials peer medians of 24.8x and 13.9x, respectively.
When is GRC's next earnings report?
The company's next earnings report is scheduled for October 23, 2026.