Gorman Story

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GRC -- USA Stock  

USD 34.44  0.86  2.44%

As many millenniums are trying to avoid industrials space, it makes sense to go over Gorman Rupp a little further and try to understand its current market patterns. Why are we still confident in anticipation of a complete recovery. Is the firm current valuation justified? We will cover Gorman Rupp valuation to give you a better outlook on taking a position in the stock.
Published over a month ago
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Is Gorman Rupp outlook positive for November 2020?
The current year Debt to Equity Ratio is expected to grow to 0.26. The current year Average Equity is expected to grow to about 311.4 MThe company has a current ratio of 5.02, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Gorman Rupp has performance score of 4 on a scale of 0 to 100. The company retains a Market Volatility (i.e. Beta) of 0.016, which attests to not very significant fluctuations relative to the market. Let's try to break down what Gorman's beta means in this case. As returns on the market increase, Gorman Rupp returns are expected to increase less than the market. However, during the bear market, the loss on holding Gorman Rupp will be expected to be smaller as well. Although it is extremely important to respect Gorman Rupp current price history, it is better to be realistic regarding the information on equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Gorman Rupp technical indicators, you can presently evaluate if the expected return of 0.11% will be sustainable into the future. Gorman Rupp right now retains a risk of 1.89%. Please check out Gorman Rupp treynor ratio, as well as the relationship between the potential upside and expected short fall to decide if Gorman Rupp will be following its current trending patterns.
We determine the current worth of Gorman Rupp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gorman Rupp based exclusively on its fundamental and basic technical indicators. By analyzing Gorman Rupp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Gorman Rupp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gorman Rupp. We calculate exposure to Gorman Rupp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Gorman Rupp's related companies.

Gorman Rupp Investment Alerts

Gorman investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Gorman Rupp performance across your portfolios.Please check all investment alerts for Gorman

Gorman Rupp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Gorman value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Gorman Rupp competition to find correlations between indicators driving the intrinsic value of Gorman.

How Gorman utilizes its cash?

To perform a cash flow analysis of Gorman Rupp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gorman Rupp is receiving and how much cash it distributes out in a given period. The Gorman Rupp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Gorman Rupp Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 62.17 Million

Gorman Rupp exotic insider transaction detected

Legal trades by Gorman Rupp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Gorman insider trading alert for general transaction of common stock (company stock plan) by Morehead Angela M, Treasurer and Asst. Secretary, on 13th of November 2020. This event was filed by Gorman Rupp Co with SEC on 2020-11-13. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Gorman Rupp Indicators

Gorman Rupp reported the last year's revenue of 370.48 M. Total Income to common stockholders was 29.23 M with profit before taxes, overhead, and interest of 102.67 M.

Margins Breakdown

Gorman profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Gorman Rupp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Gorman Rupp profit margins.
Operating Margin12.21
EBITDA Margin0.14
Gross Margin0.28
Profit Margin0.0923

Gorman Rupp Earnings Before Interest Taxes and Depreciation Amortization EBITDA is somewhat stable at the moment. Further, Gorman Rupp Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.

Will Gorman Rupp current rise continue?

Current Skewness is up to 0.02. Price may slip again. Gorman Rupp has relatively low volatility with skewness of 0.02 and kurtosis of 0.32. However, we advise all investors to independently investigate Gorman Rupp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Gorman Rupp

Whereas some other companies within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, Gorman Rupp may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Gorman. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gorman Rupp.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Gorman Rupp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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