RING ENERGY INC (REI) Stock Fundamental Analysis
USA - NYSEARCA:REI - US76680V1089 - Common Stock
0.9159 USD
-0.03 (-2.7%)
0.91 USD
-0.01 (-0.64%)
Taking everything into account, REI scores 4 out of 10 in our fundamental rating. REI was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. While REI belongs to the best of the industry regarding profitability, there are concerns on its financial health. REI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
REI had positive earnings in the past year.
REI had a positive operating cash flow in the past year.
REI had positive earnings in 4 of the past 5 years.
REI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REI has a better Return On Assets (4.57%) than 60.66% of its industry peers.
REI's Return On Equity of 7.72% is in line compared to the rest of the industry. REI outperforms 52.61% of its industry peers.
With a Return On Invested Capital value of 6.18%, REI perfoms like the industry average, outperforming 54.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for REI is significantly below the industry average of 21.53%.
The last Return On Invested Capital (6.18%) for REI is well below the 3 year average (11.40%), which needs to be investigated, but indicates that REI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 7.72% | ||
| ROIC | 6.18% |
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
REI's Profit Margin of 20.72% is fine compared to the rest of the industry. REI outperforms 73.93% of its industry peers.
REI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.70%, REI is in the better half of the industry, outperforming 73.46% of the companies in the same industry.
REI's Operating Margin has improved in the last couple of years.
The Gross Margin of REI (92.88%) is better than 96.68% of its industry peers.
In the last couple of years the Gross Margin of REI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.7% | ||
| PM (TTM) | 20.72% | ||
| GM | 92.88% |
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.
Compared to 1 year ago, REI has more shares outstanding
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 0.68. 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 (0.68) is worse than 61.14% of its industry peers.
The Debt to FCF ratio of REI is 15.05, which is on the high side as it means it would take REI, 15.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of REI (15.05) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.50 indicates that REI is somewhat dependend on debt financing.
REI has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 15.05 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.57
WACC10.76%
2.3 Liquidity
A Current Ratio of 0.63 indicates that REI may have some problems paying its short term obligations.
REI has a worse Current ratio (0.63) than 79.62% of its industry peers.
REI has a Quick Ratio of 0.63. This is a bad value and indicates that REI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.58, REI is not doing good in the industry: 77.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for REI have decreased strongly by -50.00% in the last year.
The earnings per share for REI have been decreasing by -11.37% on average. This is quite bad
The Revenue for REI has decreased by -13.66% in the past year. This is quite bad
REI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.36% yearly.
EPS 1Y (TTM)-50%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.68%
3.2 Future
Based on estimates for the next years, REI will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.38% on average per year.
REI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.48% yearly.
EPS Next Y-48.06%
EPS Next 2Y-13.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.43%
Revenue Next 2Y-1.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 3.98 indicates a rather cheap valuation of REI.
Based on the Price/Earnings ratio, REI is valued cheaper than 95.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, REI is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.49, the valuation of REI can be described as very cheap.
REI's Price/Forward Earnings ratio is rather cheap when compared to the industry. REI is cheaper than 96.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. REI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.98 | ||
| Fwd PE | 3.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI is valued cheaper than 87.68% of the companies in the same industry.
REI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. REI is cheaper than 85.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 3.26 |
4.3 Compensation for Growth
REI has a very decent profitability rating, which may justify a higher PE ratio.
REI's earnings are expected to decrease with -13.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for REI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.9159
-0.03 (-2.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.89%
Inst Owner Change-0.06%
Ins Owners9.49%
Ins Owner Change0.41%
Market Cap189.17M
Analysts80
Price Target2.55 (178.41%)
Short Float %5.79%
Short Ratio3.32
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)1
Avg EPS beat(2)13.31%
Min EPS beat(2)-1.97%
Max EPS beat(2)28.58%
EPS beat(4)1
Avg EPS beat(4)4.17%
Min EPS beat(4)-6.2%
Max EPS beat(4)28.58%
EPS beat(8)4
Avg EPS beat(8)2.37%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)7
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)2.17%
Revenue beat(16)10
Avg Revenue beat(16)6.43%
PT rev (1m)0%
PT rev (3m)-27.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)7.14%
EPS NY rev (3m)-56.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.98 | ||
| Fwd PE | 3.49 | ||
| P/S | 0.57 | ||
| P/FCF | 6.32 | ||
| P/OCF | 1.18 | ||
| P/B | 0.21 | ||
| P/tB | 0.21 | ||
| EV/EBITDA | 3.26 |
EPS(TTM)0.23
EY25.11%
EPS(NY)0.26
Fwd EY28.67%
FCF(TTM)0.15
FCFY15.83%
OCF(TTM)0.78
OCFY84.73%
SpS1.62
BVpS4.35
TBVpS4.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 7.72% | ||
| ROCE | 7% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 6.18% | ||
| OM | 29.7% | ||
| PM (TTM) | 20.72% | ||
| GM | 92.88% | ||
| FCFM | 8.96% |
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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 15.05 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 132.46% | ||
| Cap/Sales | 38.98% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | 43.23% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.68 |
F-Score4
WACC10.76%
ROIC/WACC0.57
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)-50%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-58.33%
EPS Next Y-48.06%
EPS Next 2Y-13.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.68%
Revenue Next Year-11.43%
Revenue Next 2Y-1.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.9%
EBIT growth 3Y11.55%
EBIT growth 5Y15.65%
EBIT Next Year42.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.69%
FCF growth 3Y24.85%
FCF growth 5YN/A
OCF growth 1Y-26.76%
OCF growth 3Y38.79%
OCF growth 5Y12.77%