Range Resources Corp (NYSE:RRC) Emerges as a Top Candidate in Decent Value Screen

The Decent Value screen finds companies trading below their intrinsic worth while keeping solid operational fundamentals. This method joins the central ideas of value investing with modern quantitative study, looking for stocks with good valuation numbers next to respectable profitability, financial condition, and growth possibility. This kind of screening assists investors in finding chances where market pricing might not completely show a company's basic financial strength and future outlook.

RANGE RESOURCES CORP (NYSE:RRC) appears as a notable candidate from this screening method. The natural gas and oil exploration company shows a number of traits that value investors usually look for, especially when reviewed using ChartMill's fundamental study structure.

Valuation Strength The company's valuation numbers look especially appealing, getting a 7 out of 10 in ChartMill's review. With a Price/Earnings ratio of 11.90, RRC trades at a large discount to both the S&P500 average of 26.86 and shows a better valuation than 64.59% of its industry group. The forward P/E ratio of 7.46 points to even more undervaluation compared to future earnings forecasts. These valuation numbers are important for value investors as they show a possible margin of safety, a main idea in value investing where the difference between market price and intrinsic value offers downside protection.

Profitability Metrics RRC shows solid profitability with a score of 7 out of 10. The company keeps a good Return on Assets of 6.74% and Return on Equity of 11.60%, doing better than large parts of its industry rivals. Its profit margin of 17.10% and operating margin of 25.63% point to efficient operations, while the notable gross margin of 90.46% exceeds 95.69% of industry peers. Good profitability is necessary for value investments as it suggests the company has competitive benefits and operational effectiveness that may not be completely shown in its present stock price.

Financial Health Considerations The company's financial condition score of 5 out of 10 shows some strong points next to areas to watch. RRC keeps a fair debt-to-equity ratio of 0.29, doing better than 63.64% of industry peers, and shows good solvency with a debt-to-FCF ratio of 2.39. However, liquidity numbers present issues, with current and quick ratios of 0.55 pointing to possible difficulties in meeting short-term responsibilities. Value investors need to weigh these factors, seeing that while liquidity issues exist, the company's general solvency and debt management stay acceptable for the industry.

Growth Prospects Getting a 5 out of 10 for growth, RRC displays mixed but encouraging trends. The company has reached good EPS growth of 24.11% over the last year and 42.73% on average in recent years. Future estimates show expected EPS growth of 8.87% and revenue growth of 13.57% each year. While recent revenue has shown some reduction, the speeding up revenue growth forecasts suggest getting better fundamentals. For value investors, lasting growth prospects are important as they supply the catalyst for market notice of basic value.

The mix of these factors, appealing valuation, solid profitability, acceptable financial condition issues, and reasonable growth forecasts, places RRC as a possible candidate for value-focused portfolios. The company's operational presence in the Appalachian region, especially the Marcellus Shale formation, gives asset backing that may not be completely valued by current market pricing.

For investors wanting to review similar chances, more screening outcomes can be found using the Decent Value Stocks screen, which finds companies meeting these particular fundamental requirements.

Disclaimer: This study is given for informational reasons only and does not make up investment advice, suggestion, or backing of any security. Investors must do their own study and talk with a qualified financial advisor before making investment choices.