GRC - Gorman-Rupp's Sell-Off Seems Overdone Relative To The Longer-Term Opportunities
Summary
- Gorman-Rupp's third quarter results looked a little soft compared to other industrials with similar water and industrial pump/fluid-handling market exposures.
- Margins have been pressured by input costs but are coming back on cost recoveries.
- Fill-Rite brings in a leading fluid transfer pump company with sizable addressable markets and good margins, but Gorman-Rupp paid a high multiple and took on meaningful debt.
- Gorman-Rupp's mid-single-digit revenue and high-single-digit FCF growth potential can support a relatively attractive high-single-digit long-term annualized return.
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Gorman-Rupp's Sell-Off Seems Overdone Relative To The Longer-Term Opportunities