Gorman-Rupp Company (The) Common Stock (GRC)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at a 1,415-employee pump maker with a market value of about $2.0 billion. The business is understandable: it sells pumps and pump systems into water, wastewater, industrial, petroleum and chemical markets. That replacement demand can create a modest moat, though it is not a wide-moat franchise. The filed numbers show progress. In fiscal 2025, the year ended 2025-12-31, revenue was $682.4 million, net income $53.0 million, and diluted EPS $2.02. In fiscal 2024, the year ended 2024-12-31, revenue was $659.7 million, net income $40.1 million, and diluted EPS $1.53. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $186.1 million, net income $19.4 million, and diluted EPS $0.74; in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $15.8 million and diluted EPS $0.60. So profits are rising faster than sales. Health is decent: FairStock calculations show ROE 14.86%, ROCE 7.62%, debt-to-equity 0.62, Piotroski 7/9, Altman Z 4.03, and free cash flow of $100.5 million, a 5.2% FCF yield. The issue is price. At the 2026-10-13 close of $73.86, FairStock's P/E is 31.16, P/B is 4.42, EV/EBITDA is 16.84, and PEG is 1.35. Its Graham Number is $29.85, so the margin of safety is -147.44%. The Lynch category is STALWART, reflecting steady long-term growth, but the stock already discounts much of that. FairStock's score is 49/100. I would call it a good business at a full-to-rich price, not a bargain.

In plain English: Gorman-Rupp makes pumps and pump systems used in water, wastewater, industrial and petroleum work. The business looks reasonably healthy: sales are growing slowly, profits are improving, and debt is manageable, though the company does not earn especially high returns on its capital. At $73.86, the shares look expensive compared with its current profits, its accounting value, and a conservative estimate of what the business is worth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer