How strong are Gorman Rupp (USA Stocks:GRC) fundamentals?

GRC Stock

USD 24.00 0.14 0.59%

Macroaxis Story

Gorman Rupp Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 55.72 Million. The current year Earnings before Tax is expected to grow to about 35.3 M, whereas Net Income Per Employee is forecasted to decline to about 22.8 K. Gorman-Rupp is scheduled to announce its earnings today. While many fundamental traders are getting carried away by overanalyzing balance sheets and income statements, it is reasonable to go over Gorman-Rupp against its basic efficiency ratios. What exactly are Gorman Rupp shareholders getting in March? Gorman-Rupp almost mirrors the market. We can now analyze Gorman as a potential investment option for your portfolios.

Published over a month ago

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Reviewed by Vlad Skutelnik

Our trade recommendations module complements current analysts and expert consensus on Gorman-Rupp. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.

This firm dividends can provide a clue to the current value of the stock. Gorman Rupp one year expected dividend income is about $0.44 per share.

How strong are Gorman Rupp (USA Stocks:GRC) fundamentals?

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.

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 USD0.45 per share.

The current year Dividends per Basic Common Share is expected to grow to 0.74, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (19.3 M).

	Last Reported	Projected for 2023
Payment of Dividends and Other Cash Distributions	-17.9 M	-19.3 M
Dividend Yield	0.027	0.0263
Dividends per Basic Common Share	0.69	0.74

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.

How important is Gorman Rupp's Liquidity

Gorman Rupp financial leverage refers to using borrowed capital as a funding source to finance Gorman-Rupp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gorman Rupp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Gorman Rupp's total debt and its cash.

How does Gorman utilize 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 decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 13.69 Million

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 Gross Profit in more details.

Acquisition by Wischmeier D Patrick of 468 shares of Gorman Rupp subject to Rule 16b-3

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 grant of common stock by Wischmeier D Patrick, VP Information Technology, on 24th of February 2023. This event was filed by Gorman Rupp Co with SEC on 2023-02-24. 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.

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. Many companies such as Gorman Rupp have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. 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

24.45%

Insiders

13.19%

Institutions

62.36%

	Retail Investors	24.45
	Insiders	13.19
	Institutions	62.36

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 89.91 percent. This suggests that the company is making $0.9 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

217.1 M

Assets Non Current

136 M

Current Assets	217.13 Million	54.41
Assets Non Current	135.97 Million	34.07
Goodwill	40.52 Million	10.15
Tax Assets	5.45 Million	1.37

Another setback for Gorman Rupp investors

The semi variance is down to 2.71 as of today. Gorman-Rupp has relatively low volatility with skewness of -0.02 and kurtosis of -0.47. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gorman Rupp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gorman Rupp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Gorman Rupp Investment

Whereas many other companies under the specialty industrial machinery industry are still a bit expensive, Gorman Rupp may offer a potential longer-term growth to investors. In closing, as of the 3rd of February 2023, we believe that Gorman Rupp is currently undervalued with below average odds of distress in the next two years. Our latest 90 days advice on the company is Strong Hold.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile

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 Aina Ster 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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