The Gorman-Rupp Company (GRC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

The Gorman-Rupp Company (GRC) Industrial Operations Profile

The Gorman-Rupp Company, established in 1933, specializes in designing, manufacturing, and selling pumps and pump systems across various industries, including water, wastewater, construction, and petroleum. With a global presence and a diverse product portfolio, GRC serves multiple liquid-handling applications through a robust distribution network.

What Is the Investment Thesis for GRC?

The Gorman-Rupp Company presents a stable investment opportunity within the industrial machinery sector. With a market capitalization of $1.93B and a P/E ratio of 31.03, the company demonstrates consistent profitability, supported by a healthy gross margin of 29.8% and a profit margin of 8.4%. Key growth catalysts include expanding into emerging markets and continued innovation in pump technology. However, investors should be aware of potential risks such as fluctuations in raw material costs and increased competition. The company's dividend yield of 0.97% offers a modest income stream, while its beta of 1.26 indicates higher volatility compared to the market. Gorman-Rupp's established market presence and diverse product applications provide a solid foundation for sustained growth.

Based on FMP financials and quantitative analysis

GRC Key Highlights

Market capitalization of $1.93B, reflecting substantial investor confidence.

• P/E ratio of 31.03, indicating a premium valuation relative to earnings.
• Gross margin of 29.8%, showcasing effective cost management in manufacturing.
• Profit margin of 8.4%, demonstrating consistent profitability in a competitive market.
• Dividend yield of 0.97%, providing a modest income stream for investors.

Who Are GRC's Competitors?

GRC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are GRC's Key Strengths?

Diverse product portfolio.

• Established distribution network.
• Strong brand reputation.
• Focus on specialized applications.

What Are GRC's Weaknesses?

Exposure to cyclical industries.

• Dependence on distributor relationships.
• Limited presence in emerging markets.
• Higher beta indicating more volatility.

What Could Drive GRC Stock Higher?

Infrastructure development projects driving demand for pumps.

• Increasing focus on water and wastewater treatment solutions.
• Potential acquisitions to expand product portfolio and market reach.
• Innovation in energy-efficient and smart pump technologies.
• Expansion into emerging markets with high growth potential.

What Are the Key Risks for GRC?

Fluctuations in raw material costs impacting profitability.

• Increased competition from global pump manufacturers.
• Economic downturns affecting industrial spending.
• Changes in environmental regulations increasing compliance costs.
• Supply chain disruptions impacting production and delivery.

What Are the Growth Opportunities for GRC?

• Growth opportunity 1: Expanding into emerging markets presents a significant growth opportunity for Gorman-Rupp. The increasing demand for water and wastewater treatment solutions in developing countries, particularly in Asia-Pacific and Latin America, offers a substantial market. By establishing strategic partnerships and tailoring products to local needs, Gorman-Rupp can capitalize on this growing demand. This expansion could increase revenue by 10-15% over the next five years.
• Growth opportunity 2: Innovation in pump technology, particularly in energy-efficient and smart pump solutions, is a key growth driver. The increasing focus on sustainability and reducing energy consumption is driving demand for advanced pump systems. Gorman-Rupp can invest in R&D to develop cutting-edge products that meet these evolving needs. This could lead to a 5-7% increase in market share within three years.
• Growth opportunity 3: Strengthening its presence in the fire protection market offers a lucrative growth avenue. The increasing focus on fire safety regulations and infrastructure development is driving demand for reliable fire protection pump systems. Gorman-Rupp can leverage its existing expertise and expand its product offerings to capture a larger share of this market. This could result in a 8-12% increase in revenue over the next four years.
• Growth opportunity 4: Enhancing its e-commerce platform and digital marketing efforts can improve customer reach and drive sales. The increasing trend of online purchasing and the need for convenient access to product information are driving the adoption of digital channels. Gorman-Rupp can invest in its online presence to attract new customers and improve customer engagement. This could lead to a 6-9% increase in online sales within two years.
• Growth opportunity 5: Strategic acquisitions of smaller pump manufacturers or technology companies can expand Gorman-Rupp's product portfolio and market reach. The fragmented nature of the pump industry presents opportunities for consolidation. By acquiring companies with complementary products or technologies, Gorman-Rupp can strengthen its competitive position and accelerate growth. This could result in a 10-15% increase in overall revenue within five years.

What Are GRC's Competitive Advantages?

• Established brand reputation and long-standing history.
• Diverse product portfolio catering to various industries.
• Extensive distribution network providing broad market access.
• Strong engineering capabilities and product innovation.
• Focus on specialized applications and customer service.

What Does GRC Do?

The Gorman-Rupp Company, founded in 1933 and headquartered in Mansfield, Ohio, is a manufacturer of pumps and pump systems. The company's origins lie in addressing the need for efficient pumping solutions, evolving from a small operation to a global provider. Gorman-Rupp's product line includes 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. These pumps serve a wide array of industries, including water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, military, and HVAC. The company distributes its products through a network of distributors, manufacturers' representatives, third-party distributor catalogs, direct sales, and e-commerce platforms, ensuring broad market access. Gorman-Rupp's commitment to innovation and quality has solidified its position as a key player in the pump manufacturing industry.

What Products and Services Does GRC Offer?

• Designs and manufactures a wide range of pumps and pump systems.
• Offers self-priming centrifugal pumps for various applications.
• Produces standard centrifugal pumps for general liquid transfer.
• Provides magnetic drive centrifugal pumps for specialized uses.
• Develops axial and mixed flow pumps for high-volume applications.
• Manufactures vertical turbine line shaft pumps for deep well pumping.
• Creates submersible pumps for underwater applications.
• Offers rotary gear, diaphragm, bellows, and oscillating pumps for specific needs.

How Does GRC Make Money?

• Designs and manufactures pumps and pump systems.
• Sells products through a network of distributors and representatives.
• Generates revenue from direct sales to end-users.
• Provides aftermarket services and support.

What Industry Does GRC Operate In?

The Gorman-Rupp Company operates within the industrial machinery sector, which is characterized by steady growth driven by infrastructure development and industrial expansion. The global pumps market is projected to reach $75 billion by 2028, growing at a CAGR of 5%. Key trends include the adoption of energy-efficient pumps and increasing demand for smart pump solutions. Gorman-Rupp competes with other pump manufacturers, focusing on specialized applications and customer service. The company's established distribution network and diverse product portfolio provide a competitive edge in this fragmented market.

Who Are GRC's Key Customers?

• Water and wastewater treatment plants.
• Construction and dewatering companies.
• Industrial facilities and manufacturers.
• Petroleum and chemical processing plants.
• Agricultural operations and irrigation systems.

Over the past six months, The Gorman-Rupp Company insiders filed 12 SEC Form 4 transactions — 3 sales and 9 purchases. On net that is roughly 5K shares acquired (about $400K) — insiders putting money in tends to read as conviction.

The Gorman-Rupp Company has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 6.0% above estimates on average.

The Gorman-Rupp Company's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.93 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for The Gorman-Rupp Company stands at 14.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.8%, showing how much profit it generates from its asset base. GRC trades at a trailing price-to-earnings ratio of 31.03, above the Industrials sector average of ~28.00x. Its free cash flow yield is 3.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.93 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.4%, the inverse of the P/E and a quick read on earnings relative to price.

The Gorman-Rupp Company (GRC) Valuation Context

Valued at $1.93B, GRC is classified as a small-cap stock. Relative to its peer group, GRC's quantitative score of 76/100 is roughly in line with the peer average of 69/100.

GRC Revenue & Earnings Trend

In Q2 FY2026, GRC generated $186.1M in top-line revenue, marking a sequential increase of 5.4%. The company recorded net income of $19.4M, with diluted EPS of $0.74. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Industrials company. Across the four most recent quarters, GRC averaged $0.59 in diluted EPS.

Company Profile

The Gorman-Rupp Company operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Mansfield, US. The company is led by CEO Scott A. King. GRC has traded publicly since 1980.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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