Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

The Gorman-Rupp Company (GRC)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$46.42 - $129.57$72.08
Multi-Stage$34.66 - $37.88$36.24
Blended Fair Value$54.16
Current Price$46.41
Upside16.70%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.75%6.94%0.720.700.680.630.590.552.500.470.430.40
YoY Growth--3.05%3.22%7.75%7.74%7.13%-78.08%434.33%9.36%5.84%9.10%
Dividend Yield--2.06%1.80%2.72%1.76%1.77%1.75%7.29%1.60%1.36%1.56%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)50.25
(-) Cash Dividends Paid (M)19.44
(=) Cash Retained (M)30.81
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.056.283.77
Cash Retained (M)30.8130.8130.81
(-) Cash Required (M)-10.05-6.28-3.77
(=) Excess Retained (M)20.7624.5327.04
(/) Shares Outstanding (M)26.2626.2626.26
(=) Excess Retained per Share0.790.931.03
LTM Dividend per Share0.740.740.74
(+) Excess Retained per Share0.790.931.03
(=) Adjusted Dividend1.531.671.77
WACC / Discount Rate8.40%8.40%8.40%
Growth Rate4.94%5.94%6.94%
Fair Value$46.42$72.08$129.57
Upside / Downside0.01%55.31%179.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)50.2553.2356.4059.7563.3067.0669.07
Payout Ratio38.69%48.95%59.21%69.47%79.74%90.00%92.50%
Projected Dividends (M)19.4426.0633.3941.5150.4760.3563.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.40%8.40%8.40%
Growth Rate4.94%5.94%6.94%
Year 1 PV (M)23.8124.0424.26
Year 2 PV (M)27.8828.4228.95
Year 3 PV (M)31.6732.5833.52
Year 4 PV (M)35.1936.5537.95
Year 5 PV (M)38.4540.3242.26
PV of Terminal Value (M)753.25789.83827.81
Equity Value (M)910.25951.73994.75
Shares Outstanding (M)26.2626.2626.26
Fair Value$34.66$36.24$37.88
Upside / Downside-25.31%-21.91%-18.38%

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