Gorman-Rupp (GRC): industrial pumps with a perfect score
2026-06-22 · By Lubin Danilo, founder of Lubin Investment
Gorman-Rupp (GRC) has manufactured pumps for water, wastewater, oil and mining since 1933 in Mansfield, Ohio. It is a Dividend King with 50+ years of consecutive dividend growth. Its current price of $87.93 is slightly above our buy target of $85.24, a gap of -3.1%. Fundamental quality is perfect; valuation is worth monitoring.
Gorman-Rupp: 90 years of industrial pumps
Gorman-Rupp Company (GRC) was founded in 1933 by J.C. Gorman and H.E. Rupp in Mansfield, Ohio. For over 90 years, the company has designed and manufactured centrifugal, self-priming and rotary pumps for critical applications: drinking water, municipal wastewater, oil and gas, mining, agriculture and industry. Its customers include municipalities, utilities, oil companies and industrial companies worldwide.
Key financial data
| Indicator | Value |
|---|---|
| Current price | $87.93 |
| FCF per share | $3.22 |
| Price-to-FCF ratio | 27.3x |
| Buy target | $85.24 |
| Gap vs target | -3.1% (slightly above) |
| Sector | Specialty Industrial Machinery |
Dividend King: 50+ years of dividend growth
Gorman-Rupp is one of the rare industrial Dividend Kings: the company has increased its dividend for more than 50 consecutive years. This exceptional track record reflects the stability of its cash flows across all economic cycles. Long-term contracts with municipalities (water network maintenance, pumping stations) create revenue recurrence that is rare in manufacturing.
Business model: recurring revenues on critical assets
GRC's strength lies in the critical nature of its equipment. A municipal pumping station cannot stop: maintenance, spare parts and upgrades are mandatory expenditures. This partial customer captivity generates a recurring revenue stream in services and parts that represents a growing share of revenues. GRC also sells internationally, with a presence in over 130 countries.
Valuation: above target, but barely
The current price of $87.93 is slightly above our buy target of $85.24, a gap of -3.1%. In our method, this situation is not a strong negative signal — it is a transition zone between 'good buy' and 'wait for a correction'. The price-to-FCF ratio of 27.3x is higher than other top-rated stocks in our screener, reflecting the premium the market gives a Dividend King with exceptional revenue recurrence.
FAQ
What is a Dividend King and why does it matter?
A Dividend King is a company that has increased its dividend for 50+ consecutive years. It is the highest distinction for dividend consistency. Gorman-Rupp joins this very exclusive list alongside Coca-Cola, Procter & Gamble and a few dozen other US companies.
Why does GRC have such a high price-to-FCF ratio (27.3x)?
This high ratio reflects the quality premium the market gives a company with 90 years of history, recurring revenues on critical assets, and 50+ years of dividend growth. This is typical of Dividend Kings in defensive industrial niches. The premium is tied to the visibility of future cash flows.
Is GRC a good investment if the price is above the target?
Our method calculates a target based on current FCF. Being 3% above is not an investment mistake, but the margin of safety is thin. For a long-term quality investor, GRC remains an exceptional company. For a value-focused investor, a minor correction would offer a better entry point.
Does Gorman-Rupp operate in growing markets?
Yes. Water and wastewater infrastructure is chronically under-invested in the US (ASCE estimates a $434B investment deficit over 10 years). The US Infrastructure Investment and Jobs Act of 2021 allocated $55B to water infrastructure. GRC is a direct beneficiary of this renewal.
What is the main risk for GRC?
The main risk is margin compression from rising raw material costs (steel, aluminum, copper) in an uncertain tariff environment. GRC generally passes these increases on to customers but with a lag. The second risk is competition from Asian manufacturers in emerging markets.
Voir l'analyse GRC sur Lubin Investment
About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).