GRC - Gorman-Rupp: A Mixed Picture Warrants A Cautious Approach

2024-06-09 23:22:30 ET

Summary

• Gorman-Rupp Company's shares have seen a 25% increase since February 2023, but financial performance is now mixed.
• Revenue and profits have increased, but backlog is on the decline and recent revenue figures are weaker.
• Shares are attractively priced compared to similar companies, but caution is advised due to uncertainty and mixed results.

Well over a year ago now, in February 2023, I wrote an article that took a rather neutral stance on T he Gorman-Rupp Company ( GRC ). Leading up to that point, shares of the business had taken a beating, and this was in spite of the fact that fundamental performance was relatively strong, which was driven by robust demand. Compared to other enterprises in this kind of space, however, shares looked quite pricey. So because of this mixed picture, I decided to take a more cautious approach and rate it a ‘hold’....

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