A Holistic Look At The Gorman-Rupp Company (NYSE:GRC)

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on The Gorman-Rupp Company (NYSE:GRC) due to its excellent fundamentals in more than one area. GRC is a financially-healthy , dividend-paying company with an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Gorman-Rupp here.

Flawless balance sheet with proven track record and pays a dividend

GRC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. GRC seems to have put its debt to good use, generating operating cash levels of 130x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NYSE:GRC Income Statement, July 18th 2019
NYSE:GRC Income Statement, July 18th 2019

For those seeking income streams from their portfolio, GRC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.7%.

NYSE:GRC Historical Dividend Yield, July 18th 2019
NYSE:GRC Historical Dividend Yield, July 18th 2019

Next Steps:

For Gorman-Rupp, I've compiled three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for GRC’s future growth? Take a look at our free research report of analyst consensus for GRC’s outlook.

  2. Valuation: What is GRC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GRC is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GRC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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