How strong are Gorman Rupp basic indicators given the current build-up?

Gorman Rupp Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 380.03 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 62.7 M, whereas Net Income Per Employee is forecasted to decline to about 26.3 K. Despite somewhat strong basic indicators, Gorman Rupp is not utilizing all of its potentials. The current stock price disturbance, may contribute to a short-term swings for the investors. Will investors continue to hold, or should we expect a sell-off?
Published over a year ago
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Reviewed by Vlad Skutelnik

Gorman Rupp is UNDERVALUED at 36.06 per share with modest projections ahead. Gorman Rupp appears to be very steady, given 1 month investment horizon. Gorman Rupp holds Efficiency (Sharpe) Ratio of 0.091, which attests that the entity had 0.091% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Gorman Rupp, which you can use to evaluate future volatility of the firm. Please utilize Gorman Rupp Risk Adjusted Performance of 0.1789, downside deviation of 2.51, and Market Risk Adjusted Performance of 0.2218 to validate if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Gorman Rupp income statement, its balance sheet, and the statement of cash flows. Potential Gorman Rupp investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Gorman Rupp investors may use each financial statement separately, they are all related. The changes in Gorman Rupp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gorman Rupp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Gorman Rupp fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Gorman Rupp performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Gorman Rupp shares is the value that is considered the true value of the share. If the intrinsic value of Gorman is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Gorman Rupp. Please read more on our fundamental analysis page.

How effective is Gorman Rupp in utilizing its assets?

Gorman Rupp reports assets on its Balance Sheet. It represents the amount of Gorman resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Gorman Rupp aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Industrial Machinery & Supplies & Components space. To get a better handle on how balance sheet or income statements item affect Gorman volatility, please check the breakdown of all its fundamentals.

Are Gorman Rupp Earnings Expected to grow?

The future earnings power of Gorman Rupp involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Gorman Rupp factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Gorman Rupp stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Gorman expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Gorman Rupp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Gorman Rupp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Gorman one year expected dividend income is about USD0.47 per share.
The current year's Dividend Yield is expected to grow to 0.03, whereas Dividends Paid is projected to grow to (17.5 M).
Last ReportedProjected for 2024
Dividends Paid-18.4 M-17.5 M
Dividend Yield 0.02  0.03 
Dividend Payout Ratio 0.53  0.40 
Dividend Paid And Capex Coverage Ratio(41.13)(39.08)
Investing in dividend-paying stocks, such as Gorman Rupp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Gorman Rupp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Gorman Rupp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Gorman Rupp Gross Profit

Gorman Rupp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Gorman Rupp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Gorman Rupp Gross Profit growth over the last 10 years. Please check Gorman Rupp's gross profit and other fundamental indicators for more details.

A Deeper Perspective

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Gorman Rupp is not uncomon. There are few distinct groups of Gorman Rupp stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Gorman is distributed among investors.

Ownership Allocation

Gorman Rupp secures a total of 26.09 Million outstanding shares. Over half of Gorman Rupp outstanding shares are owned by outside corporations. These outside corporations are typically referred to corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Gorman Rupp. Please watch out for any change in the institutional holdings of Gorman Rupp as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
Retail Investors
25.9%
Insiders
17.78%
Institutions
56.32%
Retail Investors25.9
Insiders17.78
Institutions56.32
 2017 2018 2019 2020 (projected)
Consolidated Income26.55 M39.98 M35.81 M35.68 M
Direct Expenses280.64 M304.41 M295.5 M277.1 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gorman Rupp has an asset utilization ratio of 107.9 percent. This suggests that the company is making $1.08 for each dollar of assets. An increasing asset utilization means that Gorman Rupp is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
227.9 M
Assets Non Current
173.5 M
Current Assets227.91 Million51.37
Assets Non Current173.52 Million39.11
Goodwill37.15 Million8.37
Tax Assets5.12 Million1.15

Gorman Rupp has a small chance to finish above $33 in 2 months

Current treynor ratio is at 0.21. Gorman Rupp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.07. However, we do advice investors to further question Gorman Rupp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Gorman Rupp Investment

Whereas some companies under the specialty industrial machinery industry are still a bit expensive, Gorman Rupp may offer a potential longer-term growth to investors. On the whole, as of the 25th of July 2020, we believe that Gorman Rupp is currently undervalued with below average chance of bankruptcy in the next two years. Our primary 30 days advice on the company is Strong Hold.

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