📊 GRC Key Takeaways
Is Gorman Rupp Co (GRC) a Good Investment?
Gorman Rupp demonstrates strong operational efficiency with 32% net income growth and solid margins, supported by excellent liquidity ratios. However, critical weaknesses including 1.0x interest coverage (barely covering debt service), low capital returns (4.2% ROE), and slowing revenue growth (+3.4%) offset these gains and constrain financial flexibility.
Gorman-Rupp’s fundamentals are solid: margin expansion lifted EPS and net income >30% YoY on modest 3% revenue growth, delivering a 14% operating margin and a robust 13% FCF margin. Strong liquidity and acceptable leverage support resilience, though modest top-line growth and only 3.5x interest coverage temper aggressiveness.
Why Buy Gorman Rupp Co Stock? GRC Key Strengths
- Strong net income growth of 32.2% YoY driven by operational leverage and cost control
- Excellent liquidity position with 2.93x current ratio and 1.76x quick ratio providing financial stability
- Solid operating margins of 15.6% and positive free cash flow of $17.7M demonstrating cash generation capability
- Sustained margin expansion with 14.0% operating margin
- Strong cash generation with 13.0% FCF margin
- Healthy liquidity (2.37x current, 1.39x quick) and solid ROE (12.8%)
GRC Stock Risks: Gorman Rupp Co Investment Risks
- Critical interest coverage ratio of 1.0x indicates operating income barely covers debt service, limiting flexibility for downturns
- Low capital efficiency with ROE of 4.2% and ROA of 2.1% suggest inefficient use of $425.6M equity base
- Slowing revenue growth of 3.4% paired with $292.8M long-term debt creates risk if business momentum deteriorates further
- Modest revenue growth (+3.4% YoY) may limit operating leverage
- Leverage and 3.5x interest coverage expose earnings to rate/cycle pressure
- Industrial/cyclical end markets can drive order and margin volatility
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.5x to reduce financial distress risk
- Revenue growth acceleration - current 3.4% insufficient to support debt burden; target 6%+ growth needed
- Operating cash flow to debt ratio - monitor ability to service and reduce debt load relative to cash generation
- Organic revenue/order intake growth
- Operating margin and interest coverage
Gorman Rupp Co (GRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.93x current ratio provides a solid financial cushion.
GRC Profit Margin, ROE & Profitability Analysis
GRC vs Industrial Sector: How Gorman Rupp Co Compares
How Gorman Rupp Co compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Gorman Rupp Co Stock Overvalued? GRC Valuation Analysis 2026
Based on fundamental analysis, Gorman Rupp Co has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Gorman Rupp Co Balance Sheet: GRC Debt, Cash & Liquidity
GRC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Gorman Rupp Co's revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.34 reflects profitable operations.
GRC Revenue Growth, EPS Growth & YoY Performance
GRC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $163.9M | $12.1M | $0.46 |
| Q3 2025 | $168.2M | $7.9M | $0.43 |
| Q2 2025 | $169.5M | $7.9M | $0.32 |
| Q1 2025 | $159.3M | $7.9M | $0.30 |
| Q3 2024 | $167.5M | $6.5M | N/A |
| Q2 2024 | $169.5M | $6.5M | N/A |
| Q1 2024 | $159.3M | $6.5M | N/A |
| Q3 2023 | $153.8M | -$996.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Gorman Rupp Co Dividends, Buybacks & Capital Allocation
GRC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Gorman Rupp Co (CIK: 0000042682)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GRC
What is the AI rating for GRC?
Gorman Rupp Co (GRC) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRC's key strengths?
Claude: Strong net income growth of 32.2% YoY driven by operational leverage and cost control. Excellent liquidity position with 2.93x current ratio and 1.76x quick ratio providing financial stability. ChatGPT: Sustained margin expansion with 14.0% operating margin. Strong cash generation with 13.0% FCF margin.
What are the risks of investing in GRC?
Claude: Critical interest coverage ratio of 1.0x indicates operating income barely covers debt service, limiting flexibility for downturns. Low capital efficiency with ROE of 4.2% and ROA of 2.1% suggest inefficient use of $425.6M equity base. ChatGPT: Modest revenue growth (+3.4% YoY) may limit operating leverage. Leverage and 3.5x interest coverage expose earnings to rate/cycle pressure.
What is GRC's revenue and growth?
Gorman Rupp Co reported revenue of $176.6M.
Does GRC pay dividends?
Gorman Rupp Co pays dividends, with $-11.2M distributed to shareholders in the trailing twelve months.
Where can I find GRC SEC filings?
Official SEC filings for Gorman Rupp Co (CIK: 0000042682) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GRC's EPS?
Gorman Rupp Co has a diluted EPS of $0.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GRC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Gorman Rupp Co has a BUY rating with 67% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GRC stock overvalued or undervalued?
Valuation metrics for GRC: ROE of 4.2% (sector avg: 15%), net margin of 10.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GRC stock in 2026?
Our dual AI analysis gives Gorman Rupp Co a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is GRC's free cash flow?
Gorman Rupp Co's operating cash flow is $22.0M, with capital expenditures of $4.3M. FCF margin is 10.0%.
How does GRC compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 10.1% (avg: 10%), ROE 4.2% (avg: 15%), current ratio 2.93 (avg: 1.8).