RING ENERGY INC (REI) Stock Fundamental Analysis
NYSEARCA:REI - NYSE Arca - US76680V1089 - Common Stock - Currency: USD
Overall REI gets a fundamental rating of 4 out of 10. We evaluated REI against 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of REI while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on REI.
1. Profitability
1.1 Basic Checks
In the past year REI was profitable.
In the past year REI had a positive cash flow from operations.
Of the past 5 years REI 4 years were profitable.
REI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REI has a Return On Assets (4.72%) which is comparable to the rest of the industry.
REI has a Return On Equity (8.11%) which is in line with its industry peers.
REI has a Return On Invested Capital of 7.41%. This is in the better half of the industry: REI outperforms 61.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REI is significantly below the industry average of 23.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 8.11% | ||
| ROIC | 7.41% |
ROA(3y)7.78%
ROA(5y)-2.88%
ROE(3y)14.05%
ROE(5y)-8.54%
ROIC(3y)11.4%
ROIC(5y)9.87%
1.3 Margins
With a decent Profit Margin value of 20.25%, REI is doing good in the industry, outperforming 71.36% of the companies in the same industry.
REI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 33.52%, REI is in the better half of the industry, outperforming 74.18% of the companies in the same industry.
REI's Operating Margin has improved in the last couple of years.
The Gross Margin of REI (93.37%) is better than 98.12% of its industry peers.
REI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.52% | ||
| PM (TTM) | 20.25% | ||
| GM | 93.37% |
OM growth 3Y-9.4%
OM growth 5Y2.02%
PM growth 3Y121.59%
PM growth 5Y4.09%
GM growth 3Y0.46%
GM growth 5Y5.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REI is still creating some value.
REI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for REI has been increased compared to 5 years ago.
The debt/assets ratio for REI has been reduced compared to a year ago.
2.2 Solvency
REI has an Altman-Z score of 0.66. This is a bad value and indicates that REI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of REI (0.66) is worse than 62.44% of its industry peers.
The Debt to FCF ratio of REI is 15.99, which is on the high side as it means it would take REI, 15.99 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.99, REI perfoms like the industry average, outperforming 46.01% of the companies in the same industry.
REI has a Debt/Equity ratio of 0.53. This is a neutral value indicating REI is somewhat dependend on debt financing.
REI has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: REI outperforms 44.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 15.99 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.7
WACC10.6%
2.3 Liquidity
REI has a Current Ratio of 0.47. This is a bad value and indicates that REI is not financially healthy enough and could expect problems in meeting its short term obligations.
REI's Current ratio of 0.47 is on the low side compared to the rest of the industry. REI is outperformed by 86.39% of its industry peers.
REI has a Quick Ratio of 0.47. This is a bad value and indicates that REI is not financially healthy enough and could expect problems in meeting its short term obligations.
REI's Quick ratio of 0.44 is on the low side compared to the rest of the industry. REI is outperformed by 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
REI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.50%.
Measured over the past years, REI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.37% on average per year.
The Revenue has decreased by -4.51% in the past year.
The Revenue has been growing by 13.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-37.5%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.31%
3.2 Future
Based on estimates for the next years, REI will show a very strong growth in Earnings Per Share. The EPS will grow by 26.44% on average per year.
Based on estimates for the next years, REI will show a small growth in Revenue. The Revenue will grow by 6.67% on average per year.
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.11%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.53, which indicates a rather cheap valuation of REI.
REI's Price/Earnings ratio is rather cheap when compared to the industry. REI is cheaper than 98.59% of the companies in the same industry.
REI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
The Price/Forward Earnings ratio is 1.36, which indicates a rather cheap valuation of REI.
Based on the Price/Forward Earnings ratio, REI is valued cheaper than 99.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, REI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.53 | ||
| Fwd PE | 1.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REI is valued cheaper than 86.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.43 | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
REI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as REI's earnings are expected to grow with 26.44% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y26.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
REI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.7586
-0.01 (-1.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners33.67%
Inst Owner Change-8.16%
Ins Owners10.28%
Ins Owner Change6.14%
Market Cap156.67M
Analysts46.67
Price Target3.54 (366.65%)
Short Float %7.62%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.08%
Min EPS beat(2)-6.2%
Max EPS beat(2)-1.97%
EPS beat(4)1
Avg EPS beat(4)-1.85%
Min EPS beat(4)-6.2%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)2.61%
EPS beat(12)5
Avg EPS beat(12)-0.8%
EPS beat(16)7
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)-0.71%
Revenue beat(12)7
Avg Revenue beat(12)4.23%
Revenue beat(16)11
Avg Revenue beat(16)7.81%
PT rev (1m)0%
PT rev (3m)15.67%
EPS NQ rev (1m)-74.84%
EPS NQ rev (3m)-78.38%
EPS NY rev (1m)0%
EPS NY rev (3m)7.47%
Revenue NQ rev (1m)-13.5%
Revenue NQ rev (3m)-10.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.53 | ||
| Fwd PE | 1.36 | ||
| P/S | 0.45 | ||
| P/FCF | 5.43 | ||
| P/OCF | 0.88 | ||
| P/B | 0.18 | ||
| P/tB | 0.18 | ||
| EV/EBITDA | 2.88 |
EPS(TTM)0.3
EY39.55%
EPS(NY)0.56
Fwd EY73.76%
FCF(TTM)0.14
FCFY18.42%
OCF(TTM)0.86
OCFY113.37%
SpS1.7
BVpS4.24
TBVpS4.24
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 8.11% | ||
| ROCE | 8.39% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 7.42% | ||
| OM | 33.52% | ||
| PM (TTM) | 20.25% | ||
| GM | 93.37% | ||
| FCFM | 8.22% |
ROA(3y)7.78%
ROA(5y)-2.88%
ROE(3y)14.05%
ROE(5y)-8.54%
ROIC(3y)11.4%
ROIC(5y)9.87%
ROICexc(3y)11.42%
ROICexc(5y)9.9%
ROICexgc(3y)11.42%
ROICexgc(5y)9.9%
ROCE(3y)12.92%
ROCE(5y)11.18%
ROICexcg growth 3Y-13.56%
ROICexcg growth 5Y7.52%
ROICexc growth 3Y-13.56%
ROICexc growth 5Y7.52%
OM growth 3Y-9.4%
OM growth 5Y2.02%
PM growth 3Y121.59%
PM growth 5Y4.09%
GM growth 3Y0.46%
GM growth 5Y5.74%
F-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 15.99 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 152.52% | ||
| Cap/Sales | 42.39% | ||
| Interest Coverage | 3.13 | ||
| Cash Conversion | 82.54% | ||
| Profit Quality | 40.61% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.66 |
F-Score4
WACC10.6%
ROIC/WACC0.7
Cap/Depr(3y)189.7%
Cap/Depr(5y)162.85%
Cap/Sales(3y)41.16%
Cap/Sales(5y)37.88%
Profit Quality(3y)48.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.5%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-50%
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.31%
Revenue Next Year-3.11%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.37%
EBIT growth 3Y11.55%
EBIT growth 5Y15.65%
EBIT Next Year38.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.62%
FCF growth 3Y24.85%
FCF growth 5YN/A
OCF growth 1Y-17.86%
OCF growth 3Y38.79%
OCF growth 5Y12.77%