Last Updated: 13 Nov 2024
Executive Summary
Gorman-Rupp Company (GRC) is a leading designer, manufacturer, and seller of pumps and pumping systems worldwide. The company has a strong financial position with a market capitalization of $1.12 billion, EBITDA of $117.38 million, and EPS of $1.46. GRC's stock is currently trading at $41.67, which is below its analyst target price of $53. The company has a trailing PE ratio of 29.29 and a forward PE ratio of 21.6. GRC's technical analysis indicates that the stock is in a bullish trend and is likely to continue to rise in the short term. The long-term outlook for GRC is also positive, with analysts expecting the company to continue to grow its earnings and revenue.
Company Overview
Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio. The company has a global presence with manufacturing facilities in the United States, Canada, Mexico, and China. GRC's products are used in a variety of industries, including water and wastewater treatment, construction, mining, and agriculture.
Fundamental Analysis
GRC's financial performance has been strong in recent years. The company's revenue has grown from $578.6 million in 2020 to $657.5 million in 2023. GRC's net income has also grown from $52.7 million in 2020 to $65.7 million in 2023. The company's gross profit margin has remained stable at around 20%. GRC's operating margin has also improved in recent years, from 10.5% in 2020 to 13.9% in 2023.
Technical Analysis
GRC's stock price has been in a bullish trend since early 2023. The stock broke out of a resistance level at $38 in March 2023 and has since rallied to a high of $42.89. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign. The relative strength index (RSI) is also above 50, which indicates that the stock is not overbought.
Short Term Outlook
The short-term outlook for GRC is positive. The stock is in a bullish trend and is likely to continue to rise in the short term. The stock's technical indicators are also bullish, which suggests that the stock is likely to continue to perform well.
Long Term Outlook
The long-term outlook for GRC is also positive. The company is a leader in the pumps and pumping systems industry and is well-positioned to continue to grow its earnings and revenue. The company's strong financial position and global presence should also help it to weather any economic downturns.
Analyst Recommendations
Analysts have a strong buy rating on GRC. The consensus target price for the stock is $53, which is 27% above the current price. Analysts believe that GRC is a good long-term investment and that the stock is currently undervalued.
