📊 GRC Key Takeaways
Is GRC a Good Investment? Thesis Analysis
Gorman Rupp demonstrates solid operational fundamentals with exceptional earnings growth (32.2% YoY) significantly outpacing revenue growth (3.4% YoY), indicating strong operational leverage and efficiency gains. The company generates robust free cash flow of $88.9M (13% FCF margin) with manageable leverage (0.74x D/E) and strong liquidity (2.37x current ratio), supporting a healthy financial position.
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 GRC? Key Strengths
- Exceptional net income growth of 32.2% YoY driven by operational efficiency and margin expansion
- Strong free cash flow generation of $88.9M with 13% FCF margin, demonstrating high-quality earnings
- Solid balance sheet with manageable debt-to-equity of 0.74x and adequate interest coverage of 3.5x
- Healthy liquidity position with current ratio of 2.37x and quick ratio of 1.39x
- 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 Investment Risks to Consider
- Modest revenue growth of only 3.4% YoY suggests limited top-line expansion and organic growth potential
- Elevated long-term debt of $307.5M relative to modest cash position of $35.1M could constrain flexibility
- Interest coverage of 3.5x is adequate but not strong, leaving limited room for operational deterioration
- 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
- Revenue growth trajectory and operating margin sustainability
- Free cash flow consistency and capital allocation decisions
- Debt reduction progress and leverage ratios
- Organic revenue/order intake growth
- Operating margin and interest coverage
GRC Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.37x current ratio provides a solid financial cushion.
GRC Profitability Ratios
GRC vs Default Sector
How GORMAN RUPP CO compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GRC Overvalued or Undervalued?
Based on fundamental analysis, GORMAN RUPP CO has mixed fundamental signals relative to the Default 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.
GRC Balance Sheet & Liquidity
GRC 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
GRC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $119.1M | -$996.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GRC Capital Allocation
GRC SEC 10-K & 10-Q Filing 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 (BUY) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRC's key strengths?
Claude: Exceptional net income growth of 32.2% YoY driven by operational efficiency and margin expansion. Strong free cash flow generation of $88.9M with 13% FCF margin, demonstrating high-quality earnings. 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: Modest revenue growth of only 3.4% YoY suggests limited top-line expansion and organic growth potential. Elevated long-term debt of $307.5M relative to modest cash position of $35.1M could constrain flexibility. 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 $682.4M.
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 $2.02.
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 April 2026, GORMAN RUPP CO has a BUY rating with 75% 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 12.8% (sector avg: 15%), net margin of 7.8% (sector avg: 12%). 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 at or below sector average. Always conduct your own research.
What is GRC's free cash flow?
GORMAN RUPP CO's operating cash flow is $106.2M, with capital expenditures of $17.4M. FCF margin is 13.0%.
How does GRC compare to other Default stocks?
Vs Default sector averages: Net margin 7.8% (avg: 12%), ROE 12.8% (avg: 15%), current ratio 2.37 (avg: 1.8).